Cryptocurrencies To Watch

Author: Chris Lion

  • MicroStrategy to Raise $1.75B with 0% Interest Note Offering to Buy Bitcoin

    MicroStrategy to Raise $1.75B with 0% Interest Note Offering to Buy Bitcoin

    MicroStrategy, the largest corporate holder of Bitcoin, is making waves again with its latest announcement. The company plans to raise $1.75 billion from senior convertible notes at a 0% interest rate to acquire additional bitcoin (BTC).

    The company noted that it aims to allocate the net proceeds from this offering toward purchasing more BTC and addressing broader corporate needs.

    The notes will be made available to individuals deemed eligible institutional investors under Rule 144A of the Securities Act and to specific international buyers through transactions conducted outside the United States by Securities Act regulation. The business intelligence giant’s 0% senior convertible notes indicate that it will not provide periodic interest payments to investors.

    MicroStrategy to Raise More Cash

    According to MicroStrategy, the offering depends on prevailing market dynamics and other factors, and there is no certainty about its timing, terms, or successful execution.

    The firm also plans to provide initial buyers of the notes with a three-day window, starting from the issuance date, to acquire up to an additional $250 million in total principal value of the notes.

    These convertible notes are issued at a reduced price and will reach their total face value upon maturity in 2029, provided they are not converted beforehand.

    MicroStrategy Continues Shopping

    If MicroStrategy allocated the entire $1.75 billion to purchasing bitcoin at current market rates, it could acquire approximately 19,065 BTC.

    MicroStrategy, led by executive chairman Michael Saylor, has solidified its position as one of the largest corporate holders of Bitcoin. The company currently holds 331,200 bitcoin, valued at over $30.3 billion, after acquiring an additional $4.6 billion in BTC on November 18.

    Similarly, on November 11, 2024, the business intelligence firm acquired approximately 27,200 bitcoins at a total cost of about $2.03 billion, with an average purchase price of roughly $74,463 per BTC, including fees and expenses.

    This year, MicroStrategy has acquired approximately 142,050 bitcoins, which are worth approximately $12.8 billion based on current market prices. With BTC’s current performance, the firm’s bitcoin investment portfolio is anticipated to skyrocket.

    CryptocurrenciesToWatch reported that Saylor aims to transform the firm into a trillion-dollar value and become the world’s leading Bitcoin bank. The company’s CEO plans to raise hundreds of billions through various financial instruments, including convertible notes and preferred stock, which will be used to purchase bitcoins. He predicts MicroStrategy’s value will skyrocket, dominating options and equity markets.

  • Russian Government Approves 15% Tax on Crypto Mining and Transactions

    Russian Government Approves 15% Tax on Crypto Mining and Transactions

    The Russian government has approved draft amendments to the bill on taxation of income and expenditures from crypto mining and its purchase and sale.

    According to an Interfax International Information Group report, the legislation will define cryptocurrencies as properties for tax purposes. Revenue obtained through Bitcoin mining and trading activities will fall under taxable provisions.

    A 15% Tax on Crypto Mining

    The report further noted that crypto transactions will not incur value-added tax and will instead align with the taxation structure as personal income from securities, taxed at no more than 15%.

    For mining, taxes will be calculated based on the prevailing market value of assets when acquired. Additionally, miners can offset operational expenses against their taxable earnings. The updated regulations mandate that infrastructure providers supporting mining activities report details of miners utilizing their platforms periodically.

    The Russian Finance Ministry stated that levying taxes on mining revenues ensures a fair representation of these operations. It noted that the strategy aims to harmonize governmental objectives with business priorities.

    “As a result of discussions with businesses, a decision was made on the advisability of taxing the financial result from mining as the fairest reflection of the results of this activity. The approach is aimed at observing a balance between the interests of businesses and the state,” the Finance Ministry said.

    Russian to Control Crypto Mining Energy Consumption

    The current development is a part of Russia’s broader push to establish oversight in the crypto sector. In recent months, authorities have worked to address energy usage tied to crypto mining and enhance regulatory measures within the industry.

    The current amendment builds upon the crypto taxation proposal introduced in December 2020, following a recent recommendation by the Russian Federal Tax Service to tax miners’ unrealized profits.

    Additionally, authorities have introduced a power consumption cap for Bitcoin miners, allowing unregistered users a maximum of 6,000 kilowatt-hours. Plans are also underway to curb crypto mining in select regions experiencing continuous energy deficits.

  • Coinbase CEO to Discuss Personnel Appointments in Meeting with Trump

    Coinbase CEO to Discuss Personnel Appointments in Meeting with Trump

    Coinbase co-founder and CEO Brian Armstrong is set to meet with newly re-elected President Donald Trump to discuss potential personnel appointments for his second administration.

    The meeting between Trump and Brian Armstrong would mark the first time the two have met since Election Day. According to a report from the Wall Street Journal, the private meeting is also part of Trump’s ongoing plans to finalize his cabinet and government heads.

    Armstrong did not contribute directly to Donald Trump’s 2024 campaign or any political action committees (PACs) supporting the Republican candidate. However, before the U.S. election, Armstrong expressed that Coinbase would be open to collaborating with a potential Trump administration. The stance indicated the company’s willingness to engage with the new administration on crypto-related policies.

    Armstrong Supports D.O.G.E

    After the U.S. election, Armstrong expressed his support for one of Trump’s initiatives on X. He endorsed the proposal for a “Department of Government Efficiency” (D.O.G.E)—a concept that could only become a formal department if Congress approves. Tesla CEO Elon Musk and American entrepreneur Vivek Ramaswamy ​will spearhead the initiative.

    Earlier this year, at the Bitcoin 2024 conference, Trump unveiled plans to create a crypto advisory council. The council would focus on shaping regulations that benefit the cryptocurrency industry to foster a more supportive environment for digital assets. This move aligns with his broader vision of establishing the U.S. as a global leader in the crypto space.

    The duo meeting could also align with Trump’s broader strategy to position the U.S. as a dominant force in the global crypto market. Trump’s vision involves implementing policies that support the crypto industry’s growth, fostering innovation, and ensuring regulatory frameworks that encourage development within the industry.

    Armstrong’s Stance on Pro-Crypto Candidates

    In 2020, Armstrong emphasized that the company would refrain from backing any political causes or candidates that did not directly align with its mission. He stated that such support would be a distraction from the company’s core objectives. 

    Armstrong’s stance seemed to shift notably in 2023 after Coinbase received a Wells notice from the SEC and faced a lawsuit accusing it of offering unregistered securities. This legal action likely prompted him to reconsider his previous neutral position. Armstrong became more vocal in supporting regulatory reforms and aligned more closely with political figures advocating for pro-crypto policies. 

    Following the SEC’s Wells notice, the exchange CEO urged crypto users to vote for “pro-crypto candidates” to secure clearer regulatory guidance for the industry. 

    In 2024, he took this further by encouraging his followers on X to support Republican candidates for the U.S. Senate in Massachusetts and Pennsylvania.

  • Bitcoin Price Targets $100K as Retail Investors Drive Market Momentum

    Bitcoin Price Targets $100K as Retail Investors Drive Market Momentum

    The crypto market, including bitcoin (BTC), has experienced significant growth following Donald Trump’s victory in the United States presidential election on November 5.

    BTC is showing renewed strength, with its price edging closer to a predicted $100,000 milestone. Recent market trends suggest that retail investors are playing a significant role in driving this bullish momentum, which signals a potential shift in the crypto sector.

    In a recent X post, CryptoQuant CEO Ki Young Ju noted that transaction volumes under $100,000 have surged to a three-year high.

    Bitcoin Retail Investors

    This pattern is reflected in the dominance of smaller transaction sizes, indicating a surge in activity from retail investors rather than large institutional entities. The increase coincides with the crypto asset’s latest price surge.

    The CryptoQuant CEO also noted that Bitcoin transactions have exceeded $1 million, seeing an uptick. The executive believes that large investors might be holding off a greater influx of retail participants, particularly as bitcoin approaches $100,000.

    He further added that while some price pullbacks are possible, he doubts they will trigger a bear market. Instead, he views this as the beginning of bigger market activity fueled by increasing engagement from both retail and institutional investors.

    Bitcoin Has a Long Way To Go

    Bitcoin climbed to an all-time high above $90,000 in the past week. The milestone has stirred confidence in the crypto market and profited several investors. Following a short period of profit-taking, the digital asset is edging closer to this significant level. As such, ARK Invest CEO Cathie Wood noted that Bitcoin still has “a long way to go.”

    During a recent interview, Cathie Wood shared that ARK Invest made its initial Bitcoin investment at $250 in 2015. Even with prices at $90,000, she maintains a positive outlook, citing improved regulatory oversight under the present U.S. administration as a key driver of BTC growth.

    The CEO further emphasized that Bitcoin is solidifying its position as a unique asset category. Its distinct performance compared to conventional investments increasingly draws institutions’ attention, driving wider acceptance. She predicted bitcoin’s value could climb to $650,000 by 2030.

    Similarly, Quinn Thompson, the founder of crypto hedge fund Lekker Capital, also noted that Bitcoin is just getting started and further predicted that the digital asset is on track to reach the much-anticipated $100,000 mark. While he is optimistic this milestone will be achieved by the end of the year, he is also confident that it could happen by the end of this month.

    Thompson stated that the market recognizes a major shift as U.S. authorities move from opposing to embracing crypto.

  • Spot Ether ETFs Hit Over $515M in Weekly Inflow, Marking All-Time High

    Spot Ether ETFs Hit Over $515M in Weekly Inflow, Marking All-Time High

    United States spot ETH exchange-traded funds (ETFs) recently witnessed a significant rise in investment, hitting a new record for weekly inflows.

    According to data from on-chain aggregator SoSoValue, these funds recorded approximately over $515 million from November 9 to November 15, marking their highest-ever weekly inflows while achieving a three-week streak of positive inflows for the first time.

    On November 11 alone, spot ETH ETFs recorded $295 million as their largest single-day inflow.

    Spot Ether ETFs have gained significant traction since their launch. They offer investors direct exposure to Ethereum’s price performance without managing private keys or wallets. The latest inflows suggest a turning point for the asset, which signals wide mainstream acceptance.

    Blackrock Leads Weekly Inflows

    BlackRock’s Ethereum ETF (ETHA) dominated the market, drawing $287.06 million in weekly inflows, which pushed its total net inflows to $1.72 billion and increased its net assets to $1.8 billion.

    Since mid-September, BlackRock has expanded its assets under management (AUM) by about 224,000 ETH, growing its holdings from 343,000 ETH on September 17 to approximately 567,000 ETH, with an estimated value of $1.8 billion as of November 15.

    While BlackRock’s ETHA led the weekly inflow, Fidelity’s FETH also delivered impressive results, attracting $197.75 million in inflows and boosting its total net assets to $764.68 million. Other prominent ETFs also saw notable activity, with Grayscale’s Mini-ETF (ETH) and Bitwise’s ETHW bringing in $78.19 million and $45.54 million, respectively. Meanwhile, VanEck’s ETHV, Invesco’s QETH, and 21Shares’ CETH experienced smaller but consistent inflows.

    In contrast, Grayscale’s ETHE experienced outflows of $101.02 million but retained its position as the largest Ethereum ETF, hitting $4.74 billion in assets under management (AUM).

    Ether’s Growth Drives Institutional Investment

    Interest in Ether ETFs has increased following Donald Trump’s recent victory as the president of the U.S. The increasing value of Ether, coupled with rising institutional interest, has also driven significant investment activity.

    In line with interest in ETH ETFs, the state of Michigan recently added Grayscale’s Ethereum ETF to its portfolio. The investment made the state the first to invest in the product since its launch.

    Michigan’s pension holds a considerable investment portfolio in Ethereum ETFs, consisting of 460,000 shares of the Grayscale Ethereum Trust (ETHE), valued at approximately $10 million, and an additional 460,000 shares of the Grayscale Ethereum Mini Trust ETF (ETH), currently valued at $1.1 million. This substantial holding brings the agency’s total investment in ETH ETFs to over $11 million, surpassing its $7 million investment in Bitcoin ETFs.

  • South Korea Investigates Upbit For About 600K KYC Violations

    South Korea Investigates Upbit For About 600K KYC Violations

    South Korea’s largest crypto exchange, Upbit, is being scrutinized for significant Know-Your-Customer (KYC) violations during its local license renewal.

    KYC is a crucial regulatory requirement designed to prevent illegal activities like money laundering and fraud by ensuring that users are correctly identified. Violations of these standards can lead to severe penalties for companies in the crypto industry.

    Over 500,000 KYC Violations

    A local report confirmed that South Korea’s Financial Intelligence Unit (FIU), part of the Financial Services Commission (FSC), has uncovered potential violations of KYC regulations on Upbit’s platform, involving between 500,000 and 600,000 cases.

    The authorities noted that they discovered the customer verification breaches while evaluating Upbit’s business license renewal. These alleged breaches could seriously affect the exchange’s ability to continue operating in the country, especially as regulatory scrutiny intensifies.

    In South Korea, crypto exchanges or virtual asset service providers (VASPs) must establish strict KYC procedures.

    Failed KYC Implementation

    Investigations into Upbit’s operations also revealed that the exchange failed to implement its KYC procedures properly. Reports highlighted instances where user-submitted identification documents were unclear, with blurred names or registration numbers.

    The exchange approved and opened accounts despite these issues without addressing these verification discrepancies. Accounts created with such questionable documents could potentially facilitate criminal activities.  

    The FIU will continue its thorough investigation into each suspicious case. However, representatives from Upbit have stated that they cannot share details regarding the ongoing investigation due to legal restrictions.

    Under South Korea’s Special Financial Information Act, crypto exchanges are required to renew their licenses every three years. 

    Failure to comply with KYC regulations could threaten this renewal. Additionally, each violation of the law could result in a fine of up to 1 billion Korean won​ (over $716,000).

    Over $2B Daily Trading Volume

    Launched in 2017, Upbit is recognized as one of South Korea’s leading crypto exchanges and ranks among the largest globally. The exchange has a daily trading volume of $2.2 billion, according to data from CoinGecko.

    The report concerning Upbit’s KYC violations came after the FCS revealed plans to investigate the exchange for possible anti-monopoly violations.

    Upbit’s investigation into monopoly practices was linked to its strong ties with K-Bank, which local authorities have long scrutinized due to its high exposure to crypto exchanges. Reports show up to 70% of K-Bank’s deposits are associated with crypto transactions.

  • Trump Appoints Former SEC Chair Clayton as U.S. Attorney for Manhattan

    Trump Appoints Former SEC Chair Clayton as U.S. Attorney for Manhattan

    United States President Donald Trump is nominating Jay Clayton, the former Chairman of the Securities and Exchange Commission (SEC), as the new United States Attorney for the Southern District of New York.

    According to a recent report, Trump noted that Clayton is a highly respected business leader, counsel, and public servant who received Engineering and Law degrees from the University of Pennsylvania and an Economics degree from the University of Cambridge.

    Clayton has been praised for his efforts to promote transparency in financial markets. Still, his tenure at the SEC was also marked by controversies regarding his perceived leniency toward Wall Street firms, particularly in handling enforcement actions against large financial institutions.

    Trump further noted that before the current appointment as U.S. Attorney for the Southern District of New York, Clayton was a partner at Sullivan & Cromwell and served on the Management Committee.

    Clayton is currently a Senior Policy Advisor to Sullivan & Cromwell, a Board Member of several public and private companies, and an Adjunct Professor at the Wharton Business School and the Carey Law School at the University of Pennsylvania.

    “Jay is going to be a strong Fighter for the Truth as we, Make America Great Again,” Trump said. 

    U.S. Attorney’s Office Overseeing High-Profile Cases

    The U.S. Attorney’s Office for the Southern District of New York is responsible for overseeing numerous prominent cases, such as financial fraud, organized criminal activity, and public corruption. It also holds authority over the financial institutions based on Wall Street in New York.

    The Southern District of New York is also often considered one of the country’s most powerful and prestigious U.S. Attorney’s Offices.

    Over the years, the office has led multiple notable financial fraud prosecutions, including FTX co-founder Sam Bankman-Fried and Archegos Capital Management founder Bill Huang, both of whom were found guilty.

    In 2020, Trump selected Clayton as the U.S. Attorney for the Southern District of New York while the office was probing several of his associates, including advisor Steve Bannon.

    Meanwhile, if confirmed, Clayton will likely be expected to implement Trump’s policies in New York, such as addressing illegal immigration and tackling crime reduction.

  • Bitfinex Hacker Receives 5-Year Prison Sentence After BTC Theft

    Bitfinex Hacker Receives 5-Year Prison Sentence After BTC Theft

    United States prosecutors are pushing for a five-year prison term for the individual who confessed to stealing 120,000 bitcoin (BTC) from the crypto exchange Bitfinex in 2016.

    At the time of the hack, Ilya Lichtenstein’s stolen bitcoin was worth approximately $70 million. He committed the exploit on Bitfinex, conducting over 2,000 unauthorized transactions to transfer the crypto asset into his possession.

    The stolen BTC is currently worth over $10.5 billion due to the rise in the price of bitcoin.

    A Prison Sentence

    According to a CNBC report, prosecutors informed a Federal Court in Washington, DC, that Lichtenstein should receive a sentence shorter than the 20 years he initially faced after admitting guilt to one count of conspiring to engage in money laundering.

    They contended that a reduced sentence was justified due to his lack of prior criminal record and cooperation, which has helped several investigations.

    The report also noted that prosecutors requested the court sentence Heather Morgan, Lichtenstein’s accomplice and wife, to 18 months in prison for her involvement in laundering the stolen digital asset, citing her cooperation as a mitigating factor.

    Compared to his wife’s sentence, the prosecutors sought a longer sentence for Lichtenstein, noting that he spent months planning the scheme and engaged in additional hacking and financial fraud attempts, including stealing $200,000 from a separate crypto exchange.

    Initially, Lichtenstein and Morgan were only suspected of laundering the hack funds, but Lichtenstein eventually confessed to carrying out the attack.

    Prosecutors stated that a stricter sentence is required to discourage future offenses and emphasize the severity of the crime.

    “While the defendants have certainly cooperated with the government in recovering the residue of the stolen funds following their arrests, it was law enforcement intervention — not any sort of spontaneous remorse on the part of the defendants — that has facilitated those recoveries,” the prosecutor said.

    Couple to Transfer Stolen Crypto Assets

    Prosecutors have further requested that the court mandate both defendants to transfer the crypto assets confiscated from Lichtenstein’s wallet back to Bitfinex as restitution.

    The wallet holds approximately 95,000 BTC, 117,400 Bitcoin Cash (BCH), 117,400 Bitcoin Satoshi Vision (BSV), and 118,100 Bitcoin Gold (BTG), with a combined value currently exceeding $6 billion. 

    Lichtenstein’s sentencing was scheduled for November 14, while his wife will be sentenced on November 15.

  • Hamster Kombat Hits $5.3B in Daily Volume with 11M Token Holders

    Hamster Kombat Hits $5.3B in Daily Volume with 11M Token Holders

    The native token for the Telegram mini game Hamster Kombat has achieved a daily trading volume of $5.3 billion, attracting over 11 million token holders, even as the Web3 game recently experienced a decline in active users.

    Hamster Kombat is an engaging tap-to-earn (T2E) game that has rapidly gained traction in crypto and gaming communities. This game uses the Telegram platform and enables players to earn crypto by tapping on a virtual hamster character while engaging in various tasks and quests.

    Each Hamster character possesses individual traits and abilities, bringing customization and strategy to the game that has captivated both crypto enthusiasts and casual gamers.

    HMSTR Hits $1.3 Billion

    The Hamster Kombat team announced that daily spot trading volume for its Hamster Kombat (HMSTR) token has surged to $1.3 billion, while perpetual trading volume climbed to an impressive $4 billion.

    The 11 million token holders show the community’s commitment. This level of adoption is rare for a token launched in recent months and underscores the project’s community-driven nature.

    Hamster Kombat has built an extensive community on platforms like Discord and Reddit, where holders discuss strategies and vote on decisions.

    Community Bullish on Hamster Kombat 

    Despite the recent decline in users, community sentiment stays upbeat. CoinMarketCap data reveals that 73% of the 87,689 voters feel optimistic about Hamster Kombat, while 27% showed bearish sentiment. 

    Hamster Kombat also saw its monthly active users decrease by 86%, dropping from a high of 300 million in August to 41 million.

    Data from IntoTheBlock indicates a significant drop in active addresses, which reached over 700,000 on September 27 but declined to slightly above 20,000 by November 13.

    While the token’s price declined from an all-time high of $0.01 on September 26 to $0.0022 on November 4, HMSTR saw a slight recovery as it surged to $0.004401 on November 14.

  • FBI Raids Residence of Polymarket CEO Shayne Coplan

    FBI Raids Residence of Polymarket CEO Shayne Coplan

    The United States Federal Bureau of Investigation (FBI) conducted a raid on the residence of Polymarket CEO Shayne Coplan, seizing his phone and electronics.

    Polymarket is a leading prediction market platform that allows users to bet on the outcome of real-world events related to politics, sports, and pop culture. The platform also provides real-time probabilities of event outcomes, enabling users to profit from their knowledge and insights.

    The prediction platform gained massive popularity during the United States presidential election, attracting billions of dollars on the final result. Polymarket users largely anticipated Donald Trump as the probable winner, which proved accurate.

    Law Enforcement Raids Coplan’s House

    According to a New York Post, U.S. law enforcement officials woke Coplan up at 6 a.m. and confiscated his phone and electronic devices. A Polymarket spokesperson confirmed the unexpected incident.

    During the incident, Coplan was reportedly not given an explanation about the raid, though the source speculates it may be politically motivated, as Polymarket successfully predicted a clear Trump victory over the Democrat Kamala Harris, contrary to mainstream polling predictions.

    Bloomberg later revealed that the U.S. Department of Justice (DOJ) was investigating Polymarket over claims that it permitted U.S. users to access its platform.

    A Polymarket spokesperson stated that this is a case of political retaliation by the departing administration against the prediction market platform for offering a market that accurately predicted the outcome of the 2024 presidential election. The spokesperson further stated that the platform is an open and fully transparent prediction platform designed to help individuals gain clearer insights into important events, including elections.

    Polymarket Reaches a $1.4M Settlement

    Before the prediction platform gained popularity, it agreed to a $1.4 million settlement with the U.S. commodities regulator in January 2022 for hosting over 900 event-based binary options markets without proper registration.

    Following a 2022 settlement, Polymarket is required to prevent U.S. individuals from accessing its services.

    Meanwhile, the platform recorded approximately $3.7 billion worth of bets on its 2024 presidential election winner market, sparking criticism over its influence.