Cryptocurrencies To Watch

Tag: Bitcoin News

  • Metaplanet Acquires Additional 107 BTC for $6.9 Million

    Metaplanet Acquires Additional 107 BTC for $6.9 Million

    Metaplanet, a Japanese investment firm, has acquired an additional 107.91 Bitcoin worth $6.9 million at an average price of $64,100 per BTC. The purchase brings the company’s total Bitcoin holdings to 506.74 BTC, worth about $32 million at the current price.

    Notably, the latest purchase is just one of Metaplanet’s series of BTC acquisitions, with its first in April. To show its commitment to being crypto-focused, the company rebranded from Red Planet, a hospitality-centric entity, to a Web3 investment firm.

    The news of the firm’s latest Bitcoin purchase has positively impacted its stock price, which jumped over 4%. This surge reflects investor confidence in the company’s strategy, which has led to a remarkable 495% increase in Metaplanet’s stock value year-to-date.

    Why Metaplanet Keeps Acquiring Bitcoin

    Metaplanet has adopted a bold “Bitcoin first, Bitcoin only” strategy, prioritizing Bitcoin over traditional assets like the yen to safeguard against inflation and economic uncertainty. This approach mirrors MicroStrategy’s playbook, which has utilized BTC as a hedge against currency devaluation.

    Metaplanet’s approach centers on consistently acquiring Bitcoin, regardless of market volatility. The Asian MicroStrategy believes that by doing so, it will protect its investments and capitalize on Bitcoin’s expected future growth. 

    As one of Japan’s few publicly traded companies to embrace digital assets, Metaplanet is pioneering the country’s crypto market. Its bold strategy has already yielded positive results, with its stock price surging significantly. The firm’s Bitcoin acquisition approach may inspire other companies to follow suit.

    Bitcoin Demand Surges

    Recently, Bitcoin’s popularity has increased due to whale investors and large investment funds. This is because central banks in countries like the United States and Canada have lowered interest rates, making investing in Bitcoin more appealing.

    In the last month, investment funds focused on Bitcoin, like BlackRock’s IBIT and Fidelity’s FBTC, have received around $2 billion. Companies like MicroStrategy are also investing more in Bitcoin.

    This growing interest in Bitcoin shows that big investors and institutions are now considering it a legitimate investment option. As more people invest, Bitcoin becomes more accepted and attractive to others.

  • MicroStrategy Spends $458M to Acquire Additional 7,420 BTC

    MicroStrategy Spends $458M to Acquire Additional 7,420 BTC

    U.S.-based business intelligence company MicroStrategy has gone bBtcoin shopping once again.Following a just-concluded convertible notes offering on September 19, the company raised $ 1.01 billion and has spent $458.2 million to acquire an additional 7,420 BTC.

    The latest purchase comes a week after the firm acquired 18,300 BTC for $1.11 billion.

    MicroStrategy Secures $1.01B, Buys More BTC

    As announced in an official press release on Friday, MicroStrategy has sold convertible notes worth $1.01 billion to qualified institutional investors to support its Bitcoin purchase spree.

    Initially, MicroStrategy planned to raise only $700 million but later announced a $175 million increase, taking the total to $875 million.

    Completing the note sale, MicroStrategy’s co-founder and chairman Michael Saylor announced on Friday that the company had purchased an additional 7,420 bitcoins at approximately $61,750 per BTC. Following the purchase, the company has achieved a bitcoin yield of 5.1% on-the-day (OTD) and 17.8% year-to-date (YTD).

    According to the U.S. Securities and Exchange Commission (SEC), MicroStrategy spread its last bitcoin purchase between September 13 and September 19, acquiring the cryptocurrency under different market conditions as the market has made drastic moves within the purchase period. 

    With the latest purchase, MicroStrategy controls over 1.2% of the total fixed Bitcoin supply. The firm holds about 252,220 BTC acquired for approximately $9.90 billion, at an average price of $39,226 per bitcoin, including fees and expenses.

    With bitcoin price sitting at $63,400 according to live price data from CryptocurrenciesToWatch, MicroStrategy’s bitcoin holdings are valued at approximately $16 billion. The firm has gained over $6 billion from its Bitcoin accumulation.

    Leading Institutional Bitcoin Investment

    Maintaining its position as the largest institutional Bitcoin holder, MicroStrategy has set the pace for other publicly traded firms to adopt Bitcoin as a reserve asset, including the Japanese company Metaplanet, Bitcoin Miners, Marathon, and Cathedra.

    Moreover, Saylor has revealed that the company will not be pausing its Bitcoin acquisition spree anytime soon. He sees it as the best investment asset for his company, so MicroStrategy has made plans to acquire more bitcoins each quarter of the year.

  • Metaplanet’s Stock Has Gained 400%+ Since Adopting Bitcoin

    Metaplanet’s Stock Has Gained 400%+ Since Adopting Bitcoin

    Japanese technology firm Metaplanet has seen a remarkable 400%+ increase in stock value in the last five months since it adopted a Bitcoin-focused investment strategy.

    In April, MetaPlanet made a strategic decision to add bitcoin (BTC) to its corporate treasury and has since continued to accumulate and grow its crypto holdings. The company’s series of BTC purchases yielded a substantial 443.2% increase in its stock value.

    Source: X.com

    Asia’s MicroStrategy?

    Metaplanet has gained the nickname “Asia’s MicroStrategy” for its continuous Bitcoin buying sprees following in the footsteps of business intelligence software company, MicroStrategy.

    Led by its founder, Michael Saylor, MicroStrategy became the first publicly traded company to added bitcoin to its primary treasury reserve.

    Since then, the business intelligence company has continued to expand its treasury holdings through the strategic accumulation of the leading crypto asset.

    As of September 13, 2024, MicroStrategy had a total of 244,800 BTC worth about $15 billion in its portfolio.

    The company aims to preserve its leadership position in corporate Bitcoin ownership, with plans to further increase its holdings through strategic acquisitions. Recently, MicroStrategy proposed the issuance of $875 million in convertible notes for Bitcoin purchases and other purposes.

    Furthermore, the company’s stock is up over 1,000% since it adopted Bitcoin.

    Metaplanet’s Series of Bitcoin Purchases

    After Metaplanet made a strategic move to add Bitcoin to its corporate treasury reserve with an inaugural purchase worth about 1 billion yen ($659 million) earlier in April, the firm has continued to mirror MicroStrategy’s strategic leadership in corporate crypto adoption.

    MetaPlanet’s crypto investment was particularly noteworthy as the firm transitioned from a hospitality-centric company, formerly known as Red Planet, to a pioneering Web3 firm.

    In July, the firm increased its total holdings to 161.3 BTC after purchasing $1.2 million worth of bitcoin.

    In a subsequent move, Metaplanet expanded its total Bitcoin holdings by 57.103 units, valued at approximately $3.4 million, following a ¥1 billion (over $6.8 million) loan acquisition from  MMXX Ventures Limited to facilitate further Bitcoin acquisitions.

    Its recent purchase of 38.4 BTC worth about $2.1 million at the time of purchase, increased its total Bitcoin holdings to over 398 BTC.

  • This German Bank is Planning to Launch Bitcoin Trading Service

    This German Bank is Planning to Launch Bitcoin Trading Service

    Leading German banking institution Commerzbank has partnered with Crypto Finance, a subsidiary of Deutsche Börse, to provide its corporate clients in Germany with safe and secure access to crypto assets.

    The German bank noted in a press release that the collaboration will primarily focus on bitcoin (BTC) and ether (ETH). 

    Commerzbank Joins the Crypto Bandwagon

    The move comes nearly a year after Commerzbank became the first German universal bank to obtain a crypto custody license. Issued in November 2023, the license allows the Bank to provide clients with crypto services.

    The partnership with Crypto Finance aims to provide Commerzbank’s corporate clients with seamless crypto transactions without the need to forgo established and regulated structures and partners.

    Commerzbank will handle the custody of digital assets through the strategic alliance, while Crypto Finance will oversee their secure trading.

    Commenting on the latest development, Gernot Kleckner, Divisional Board Member Capital Markets in the Corporate Clients segment at Commerzbank, said:

    “Our offering in digital assets, enables our corporate clients to seize the opportunities presented by bitcoin and ether for the first time.”

    Stijn Vander Straeten, Chief Executive Officer of Crypto Finance, also noted that the collaboration marks a significant milestone for Crypto Finance as it enables more companies and institutions in the country to access regulated crypto services. 

    Banks Are Penetrating the Crypto Industry

    In recent times, an increasing number of banks have been joining the crypto industry by providing custody or trading services to their clients.

    Earlier this week, Singapore’s largest bank, DBS, revealed plans to launch bitcoin and crypto options trading to its customers, fostering crypto integration into traditional finance activities.

    Similarly, Global banking giant Standard Chartered recently launched BTC and ETH custody services in the United Arab Emirates (UAE).

    The service will operate within the Dubai International Financial Center (DIFC) and will begin by offering support for bitcoin and ether, the leading cryptocurrencies in market value and adoption.

  • Singapore’s DBS to Launch Bitcoin and Crypto Options Trading

    Singapore’s DBS to Launch Bitcoin and Crypto Options Trading

    Singapore’s largest bank, DBS, has revealed plans to launch bitcoin and crypto options trading to its customers, fostering crypto integration into traditional finance activities. Although the bank did not reveal the exact date, it noted that the development would be launched in the last quarter of 2024.

    DBS to Dive into Crypto Trading

    DBS announced its crypto adoption move via a press release on Tuesday, stating that it will launch over-the-counter (OTC) crypto options trading for eligible institutional investors and wealth clients.

    Crypto options are contracts that let you buy or sell a cryptocurrency at a set price by a certain date.

    Positioning itself as Asia’s first headquartered bank to provide crypto trading services, DBS will offer financial products linked to the value of the two largest cryptocurrencies by market capitalization, Bitcoin and Ethereum.

    Currently, DBS clients who want exposure to crypto assets can trade cryptocurrencies on DBS Digital Exchange (DDEx). However, following the launch later this year, these clients can now access crypto assets through the bank’s options trading feature and structured notes to earn yield in fiat or crypto assets.

    With the upcoming service, DBS will allow qualified clients to hedge their positions against market volatility while earning yield from different options trading structures.

    Highlighting the reason behind this strategic move towards crypto adoption, Jacky Tai, Head of Trading and Structuring, Global Financial Markets, DBS, said:

    “Professional investors are increasingly allocating to digital assets in their portfolios.”

    Crypto Adoption in Asia

    Asian countries like Singapore, Japan, and Hong Kong have adopted cryptocurrencies and blockchain technology over the last few years.

    Earlier this month, the Monetary Authority of Singapore (MAS) licensed OKX centralized exchange, allowing the firm to offer its crypto trading services within its borders. 

    Following the Bitcoin Exchange-Traded Funds approval in the U.S., Hong Kong-based asset managers joined the trend, filing for crypto ETFs in the country. The Hong Kong Securities and Futures Commission approved Bitcoin and Ether ETFs, which began trading in the country in late April.  

    In April, Japanese company Metaplanet adopted Bitcoin as its primary reserve asset earlier this year following the Yen devaluation. Since then, the company has continued to purchase bitcoin, bringing its total Bitcoin portfolio to held 398 BTC.

  • Bitcoin Miner Cathedra to Suspend Mining, Plans to Focus on BTC Acquisition

    Bitcoin Miner Cathedra to Suspend Mining, Plans to Focus on BTC Acquisition

    Bitcoin miner Cathedra is planning to pause its Bitcoin mining operations, switch to another business, and invest realized profits into its Bitcoin acquisition strategy, following MicroStrategy and Marathon Digital’s lead, by regularly purchasing bitcoin (BTC) from the open market.

    The company decided on this move to recover from the effects of the 2024 Bitcoin halving event, which reduced mining block rewards. The miner also wants to retain its position in the industry while increasing shareholder bitcoin per share.

    Cathedra Pulls the Plug on Mining

    According to Cathedra’s last press release, the primary reason behind its pause on bitcoin mining is its inability to meet its most important performance metric and objective, which is acquiring bitcoin for its investors.

    “The last three years have demonstrated to us that bitcoin mining is not a reliable way to grow shareholders’ bitcoin per share,” the miner noted.

    As noted by Cathedra, nine out of ten publicly listed Bitcoin mining companies have lost more bitcoins than they gained within the past three years, holding less bitcoin per share than they used to. Citing the just concluded 2024 bitcoin halving event as the reason for shares reduction. 

    In contrast, other listed companies like MicroStrategy and Marathon have successfully increased their shareholders’ bitcoin per share by acquiring crypto from the open market rather than from mining.  (more…)

  • Bitcoin Investment Products Record $436M Inflows, Ethereum Funds Struggle

    Bitcoin Investment Products Record $436M Inflows, Ethereum Funds Struggle

    According to crypto asset firm CoinShares, crypto investment funds managed by BlackRock, Grayscale, Bitwise, Fidelity, ProShares, and 21Shares have recorded a net inflow of $436 million after two weeks of net outflows of $1.2 billion.

    Bitcoin investment products saw a shift in trends, with net outflows of $8.5 million after three weeks of consistent inflows.

    CoinShares noted that the United States market led the way, with spot Bitcoin exchange-traded funds (ETFs) generating $416 million in net inflows. Switzerland and Germany recorded $27 million and $10 million, respectively, while Canada-based products saw net outflows of $18 million.

    “We believe the surge in inflows towards the end of the week was driven by a significant shift in market expectations for a potential 50 basis point interest rate cut on September 18th,” CoinShares Head of Research James Butterfill said.

    Butterfill noted that the trading volumes in ETFs remained flat at $8 billion for the week, lower than the $14.2 billion average this year so far.  

    Bitcoin Investment Products Take the Lead

    In the past week, the U.S. spot Bitcoin ETFs recorded their fifth consecutive day of positive flows, bringing in $39.42 million in inflows.

    The inflows marked a shift in sentiment after a period of market turbulence driven by regulatory uncertainties and other significant factors.

    With BlockRock’s IBIT, the largest spot Bitcoin ETF by net assets, recording approximately $8.35 million in net inflows, Franklin Templeton’s EZBC $3.55 million flow into the fund, and much more suggested that investors are starting to regain confidence in the crypto asset.

    According to charting platform TradingView, the ratio between bitcoin and ether fell below 0.04 over the weekend, marking its lowest point since April 2021.

    Ethereum Investment Products Record $19M Outflows

    Ethereum, on the other hand, recorded $19 million in outflows and contributed $98 million in negative flows a week before.

    Over the past week, the U.S. spot ETH ETF has also seen net outflows of $17.97 million.

  • Crypto Market Loses $185 Million as Bitcoin Drops Below $58k

    Crypto Market Loses $185 Million as Bitcoin Drops Below $58k

    Bitcoin rallied above $60k a few days ago, forming bullish candles while many investors bought the crypto, and analysts predicted further price uptrend. In contrast to the high hopes and predictions, the leading cryptocurrency faced a downturn, dumping to as low as $58,114 on Monday morning. Many traders who seized the bullish opportunity were liquidated, as the market lost about $185 million.

    Crypto Liquidations Reach $185 Million

    According to data from CoinGlass, over $185 million have been liquidated from the crypto market within the past 24 hours, a 292% increase from the previous day. About $25 million, almost 14% of the liquidations, were from forcefully closed short positions.

    Notably, since the crypto market was bullish a few days ago, many traders expected a price pump and took on long or buy positions. However, that didn’t play out well. About $160 million was liquidated from long positions. Data also revealed that the liquidations were mostly from retail trade accounts, as the highest single liquidation was recorded in a centralized exchange, OKX, and was worth about $2 million on an ETH pair.

    ETH led the liquidation, sweeping off $55 million, while BTC has cleared $35 million.

    According to data from CoinGecko, the liquidations led to a 3.6% dip in the crypto market value, which is currently at $2.15 trillion.

    Bitcoin Goes Below $58,000

    Contributing to the liquidations on Monday was the sharp drop in bitcoin price, moving from the crypto price region around $60k to $58k.

    The drop in bitcoin’s price is attributed to investor speculations concerning the forthcoming U.S. Federal Open Market Committee (FOMC) meeting scheduled for Wednesday. Investors and traders are unsure of the meeting’s outcome, so they have sold their holdings in fear that the decision may make it difficult for bitcoin and other cryptocurrencies to thrive.

    Moreover, crypto-friendly U.S. presidential candidate Donald Trump, who has always spearheaded crypto adoption throughout his campaign, was nearly shot on Sunday, according to reports from the past weekend. Following the incident, he has confirmed his safety and is set to launch his new crypto platform on Monday evening.

    At press time, live price data from CryptocurrenciesToWatch shows that BTC trades around $57,750 as investors’ fears continue to drive down the market.

  • MicroStrategy Spends $1.11 Billion to Acquire an Additional 18,300 BTC

    MicroStrategy Spends $1.11 Billion to Acquire an Additional 18,300 BTC

    MicroStrategy co-founder and executive chairman Michael Saylor has announced the company’s purchase of an additional 18,300 Bitcoin worth $1.11 billion. This further cements the firm’s position as the world’s largest corporate BTC holder. Its current Bitcoin stash totals 244,800 BTC.

     

    MicroStrategy Boosts BTC Portfolio

    MicroStrategy has consistently funded its Bitcoin purchases through share sales. In late 2023, the company raised $750 million by selling shares, intending to allocate these funds toward additional Bitcoin acquisitions.

    In August, MicroStrategy announced plans to raise $2 billion by selling Class A shares. The proceeds will be used for general corporate purposes, including further Bitcoin acquisitions. Although the exact timeline for the share sale remains undisclosed, the company’s commitment to its BTC purchasing strategy is clear.

    MicroStrategy funded its latest Bitcoin acquisition through the announced share sale facilitated by multiple financial institutions, effective August 1. The sales proceeds enabled the company to raise sufficient capital.

    MicroStrategy sold over 8 million shares under the agreement and generated approximately  $1.11 billion. The raised funds were directly invested in expanding the company’s Bitcoin holdings. Between August 6 and September 12, the Virginia-headquartered company acquired 18,300 BTC at an average price of $60,408.

    Other Corporations Trail MicroStrategy

    Following MicroStrategy’s previous acquisitions of 12,000 BTC in June and 9,245 BTC in March, it is notable that the company’s total Bitcoin holdings are over 1% of the crypto’s fixed supply of 21 million. Its Bitcoin investment value has increased by 17% year to date (YTD), further solidifying its position in the crypto market.

    This financial growth spurred by Bitcoin investment may have intrigued other firms like the Japan-based investment company Metaplanet, as they are already imitating MicroStrategy’s buying pattern. The Japanese firm acquired 38.4 BTC for $2.1 million and 20 BTC for $1.2 million, showing its commitment to building a significant Bitcoin holding.

    In recent months, Semler Scientific, a medical company, has also expanded its Bitcoin holdings. The company invested $40 million in 654 BTC in May, followed by a $17 million purchase of 247 BTC in June. Last month, it added 81 BTC to its holdings for $5 million, showing its commitment to diversify its assets and invest in Bitcoin.

  • Crypto Exchange Coinbase Launches New Wrapped Bitcoin cbBTC

    Crypto Exchange Coinbase Launches New Wrapped Bitcoin cbBTC

    A few weeks ago, the American crypto exchange Coinbase created a buzz on X by simply posting “cbBTC” without any explanation, leaving many wondering what it could be. Today, the exchange clarified the tweet by announcing the launch of Coinbase Wrapped BTC (cbBTC), a new ERC20 token backed 1:1 by BTC currently available on Base and Ethereum networks.

    Interacting with cbBTC

    When users send bitcoin from Coinbase to a different network like Base or Ethereum, it is automatically exchanged for a matching amount of cbBTC. When they receive cbBTC in their exchange account, it is converted back into BTC.

    Notably, cbBTC will not have its separate trading options on Coinbase. However, users can trade cbBTC on other decentralized platforms using Coinbase Wallet and other exchanges that may support it.

    Starting September 12, customers can send and receive cbBTC in their Coinbase account. However, this is currently available for certain countries like the United States (except New York), the United Kingdom, and Australia. Being a DeFi product, it can be used anywhere in the world on Base and Ethereum networks.

    Why Coinbase Launched cbBTC

    The crypto exchange team noted that Coinbase created cbBTC to increase Bitcoin’s utility and onboard more users to crypto. By introducing cbBTC, the exchange enables millions of customers to access Ethereum’s financial apps using their existing Bitcoin holdings.

    The largest U.S.-based exchange claims cbBTC is a trusted and reputable wrapped Bitcoin backed by the Coinbase BTC holdings. The innovation will link deep Bitcoin liquidity “to low-cost, high-speed financial rails on Base and Ethereum,” resulting in a more interconnected financial ecosystem.

    The announcement added that cbBTC will remove friction, allowing users to tap into decentralized finance (DeFi) applications. The wrapped BTC product can perform on-chain tasks like providing liquidity and collateralizing to borrow other assets. Some popular DeFi apps are already supporting cbBTC, expanding Bitcoin’s on-chain utility.

    As more people want to use Bitcoin in DeFi, Coinbase is filling the gap with cbBTC. With the help of major DeFi players, cbBTC could be a game-changer for the future of DeFi and blockchain technology.