Bitcoin News
Following massive BTC purchase announcement, MicroStrategy says it may sell up to $1B in stock
The same day business intelligence firm MicroStrategy announced it would use $488 million from the proceeds of a private offering sale to buy Bitcoin, the company said it may also sell up to $1 billion of its stock for the same reason.
In a Monday S-3 filing for the U.S. Securities and Exchange Commission, MicroStrategy said it would be launching an “at the market” securities offering which would allow it to sell up to $1 billion of its Class A Common stock over time. The firm said it intended to use the proceeds from the offering “for general corporate purposes, including the acquisition of Bitcoin.”
“Bitcoin does not pay interest or other returns and so ability to generate a return on investment from the net proceeds from this offering will depend on whether there is appreciation in the value of Bitcoin following our purchases of Bitcoin with the net proceeds from this offering,” said the filing. “Future fluctuations in Bitcoin trading prices may result in our converting Bitcoin purchased with the net proceeds from this offering into cash with a value substantially below the net proceeds from this offering.”
Related: MicroStrategy could hold more than $4B in Bitcoin after latest private offering and crypto purchase
According to the SEC filing, MicroStrategy held 92,079 Bitcoin (BTC) — roughly $3.7 billion at the time of publication — as of June 4, with the company saying today it intended to purchase an additional $488 million in the cryptocurrency. The filing shows MicroStrategy purchased its existing holdings at an average BTC price of $24,450, meaning that the company has seen the value of its crypto increase by almost $1.5 billion.
Should the firm use the entirety of the $1 billion proceeds to invest in Bitcoin again, it would add roughly 25,000 coins to its coffers at the current value of $40,150. The price of the crypto asset has risen by more than 8.8% in the last 24 hours.
Source link
After three weeks of being stuck below the USD 40,000 level, bitcoin (BTC) finally broke it and went even higher. Meanwhile, famous hedge fund manager Paul Tudor Jones says he certainly wants 5% of his portfolio in BTC.
BTC surpassed USD 41,000 today before correcting lower. At 14:49 UTC, BTC trades at USD 40,956 and is up by 14% in a day and a week, trimming its monthly losses to 18%.
As BTC was pushing upwards, billionaire hedge fund manager Paul Tudor Jones said that he’s keeping an eye on this week’s Federal Reserve policy meeting, according to CNBC. Depending on their response to the economic data showing higher consumer prices, Jones may invest in cryptoassets as well, saying:
“If they treat these numbers […] with nonchalance, I think it’s just a green light to bet heavily on every inflation trade. […] If they say, ‘We’re on path, things are good,’ then I would just go all in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold.”
What’s more, among the crypto, Jones singled out bitcoin as a great way to protect his wealth long-term, and as a store of wealth. And while he may not know what to do with 80% of his portfolio until he sees what moves the Fed plans to make, as for the other 20% he said:
“I like bitcoin as a portfolio diversifier. Everybody asks me what should I do with my bitcoin? The only thing I know for certain, I want 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities.”
As reported, just over a year ago, in May, Jones said that “over 1% […] maybe it’s almost 2%” of his assets are in bitcoin.
If the officials “course correct, if they say, ‘We’ve got incoming data, we’ve accomplished our mission or we’re on the way very rapidly to accomplishing our mission on employment,” said Jones, then there’ll be a taper tantrum, a sell-off in fixed income, and a correction in stocks, which “doesn’t necessarily mean it’s over.”
Meanwhile, the US Federal Reserve officials could signal on Wednesday that they anticipate raising interest rates sooner than previously expected, after high inflation readings, reported the Wall Street Journal. Barclays Bank PLC now expects annual inflation, measured by the Fed’s preferred gauge, to hit 3.6% in the fourth quarter, which is nearly double the central bank’s target.
____
Learn more:
- Legendary Investor Paul Tudor Jones Gives More Likes to Bitcoin
- Stakes Get Higher As El Salvador Offered Volcanic BTC Leverage In Talks With IMF
- This Is When MicroStrategy Might Sell Bitcoin According to Arthur Hayes
- Bitcoin Eyes USD 40K Amid Musk Statement, Taproot Confirmation
___
(Updated at 14:59 UTC with a report from the Wall Street Journal.)
Source link
Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news.
____
Investments news
- MicroStrategy confirmed that it has raised USD 500m in order to buy more bitcoin (BTC). They would spend USD 488m of this sum on BTC. The company said that it now owns approximately BTC 92,079 (USD 3.75bn) that are being held by a newly formed subsidiary, MacroStrategy LLC.
- Investment banking giant Goldman Sachs plans to offer options and futures trading in ethereum (ETH) in the coming months, Bloomberg reported, citing Mathew McDermott, head of digital assets at the bank. He also said the bank also plans to facilitate trades via exchange-traded notes tracking BTC. “Institutional adoption will continue. Despite the material price correction, we continue to see a significant amount of interest in this space,” he was quoted as saying.
- 81% of surveyed investors (3,671 in total) are more bullish than before, following the recent sell-off in crypto markets, according to cryptoasset broker Voyager Digital’s Q2 2021 Retail Investor Sentiment Survey. 87% of the respondents plan to increase their crypto holdings over the next quarter, compared to 80% in the previous survey. Based on a sample set of more than 1.6m verified users, the results show that 18% claim that BTC will exceed USD 71,000 by the end of Q3 2021 (down from 20%), 28% said USD 41,000-USD 55,000, and 39% predicted USD 56,000-USD 70,000.
Regulation news
- The US SEC released its regulatory agenda for the spring and summer, and it does not include crypto. The agenda presents three stages of rulemaking - prerule, proposed rule, and final rule - and it’s focused on special purpose acquisition companies (SPACs), short sale disclosures, gamification of trading platforms like Robinhood, loaning or borrowing securities, money market fund reforms, cybersecurity, climate change disclosures, etc.
- The spread of cryptocurrencies without any clear regulation is a cause for concern and could damage the way the market operates, Paolo Savona the head of Italy’s stock market regulator, said today, per Reuters. “If it takes too long at a European level to come up with a solution, (Italy) will have to take its own measures,” he was quoted as saying.
- The Thai Securities and Exchange Commission has banned digital asset exchanges from trading meme- or fan-based tokens, non-fungible tokens (NFTs), and exchange-issued tokens, the Bangkok Post reported.
- Argentina’s central bank, the Banco Central de la República Argentina (BCRA), said it is investigating nine fintech firms over their crypto links. The BCRA stated that the firms were suspected of providing customers with “unauthorized financial” services that it says can only be offered in the nation by entities that hold banking licenses. The firms, it added, appear to be offering access to “investment projects that use cryptoassets as a tool for savings.”
Legal news
- Block.one, the developer of EOSIO, an open-sourced blockchain software, has entered into a USD 27.5m settlement to resolve the class action lawsuit launched by the Crypto Assets Opportunity Fund (CAOF) related to the company’s June 2017 - June 2018 token sale, and allegations that the company misled investors and inflated the EOS price. Block.one said it “believes this lawsuit was without merit and filled with numerous inaccuracies,” but that the settlement will enable the team to focus on running their business.
Mining news
- Bitcoin mining difficulty, or the measure of how hard it is to compete for mining rewards, dropped 5.3% on Sunday during the latest difficulty adjustment. It’s the second drop in a row, bringing the difficulty down to 19.93 T, or the lowest it’s been since late December 2020, as hashrate, or the computing power of the Bitcoin network dropped, due to a recent crackdown on BTC mining in China.
- Mining farms in Kazakhstan might be a subject of the new tax: one tenge (USD 0.0023) per kilowatt per hour of electricity consumed during the mining process, Kursiv.kz reported. The new requirement is a part of amendments to the Tax Code of Kazakhstan, which were approved by Mazhilis and are now under review in Senat (the upper chamber of the parliament), the report added.
- Canadian Bitcoin mining company Hut 8 Mining Corp. said that it has agreed with Canaccord Genuity Group Inc. on a bought deal worth CAD 100m (USD 82.25m) and that it expects its shares to begin trading on the Nasdaq on or about June 15, according to MarketWatch. The company’s underwriters have agreed to acquire 20m units at CAD 5 (USD 4.1) apiece. The proceeds will be used to fund the expansion of Hut 8’s crypto operations.
CBDCs news
- Spain’s biggest political party has submitted a bill in parliament that – if passed – would see the country introduce a central bank digital currency (CBDC). The draft bill is the brainchild of the Spanish Socialist Workers’ Party (PSOE), the party of Prime Minister Pedro Sánchez, and also the party with the most seats in both houses. It was published in the parliamentary bulletin – and proposes creating a token that would be issued by the Spanish central bank but pegged to the euro.
Crime news
- Crypto scams are “skyrocketing” in China, per a report from Finance and Economic Media (via Sina). Recently released, government-compiled statistics showed that “security incidents in the blockchain sector in 2020” increased by nearly 240% on 2019 figures, with criminals seeking to exploit the fact that most ordinary people have “limited knowledge of cryptoassets.” The media outlet also quoted a Yunnan Province power official as stating that miners operating in the province were likely to be shut down by the end of June.
Blockchain news
- Computing giant IBM said it has contributed code to the enterprise blockchain network Hyperledger, in order to make it easier to develop and deploy blockchain solutions for business. This includes the underlying code for the IBM Blockchain Platform Console — a user interface (UI) that will form what is now the Fabric Operations Console, which allows different platforms to integrate with a Hyperledger Fabric network, thus enhancing standardization.
___
(Updated at 16:40 UTC: with a paragraph about Goldman Sachs.)
Source link
Bitcoin News
MicroStrategy could hold more than $4B in Bitcoin after latest private offering and crypto purchase
Business intelligence company MicroStrategy has completed its $500 million offering of secured notes, and said it plans to use the proceeds to purchase Bitcoin.
In a Monday announcement, MicroStrategy said it had sold $500 million worth of senior secured notes in a private offering to buyers within and outside the United States. After deducting expenses, initial purchaser discounts, and commissions, the firm said the net proceeds were roughly $488 million, funds which it intends to use to buy Bitcoin (BTC).
Since announcing its first $250 million BTC purchase in August 2020, MicroStrategy has made several major Bitcoin buys. At the time of publication, the firm’s subsidiary, MacroStrategy, currently holds 92,079 BTC — roughly $3.8 billion.
Should the price of the crypto asset stay near its current price of $40,936, the company may be able to purchase roughly 11,913 BTC. This would mean its total Bitcoin holdings would be worth more than $4.2 billion.
Related: MicroStrategy stock slides after announcing new $400M debt raise to buy Bitcoin
MicroStrategy announced the private offering on June 7, initially saying it intended “to raise $400 million aggregate principal amount of senior secured notes in private offering,” later saying it would increase the offering to $500 million. The company reportedly saw more than $1.6 billion worth of orders for the offering — four times the initial amount.
Source link
Bitcoin derivatives data shows pro traders ignored today’s $41K pump
How To Invest Your First $100 Into Crypto
Wazrix deposit problem solution good News | Crypto wallets & 1000 Dogecoins Giveaway | Wazirx news
Here Are the 10 Altcoins To Watch in April As Risk Tolerance Swells in Crypto, Says Trader Luke Martin
How To Invest In Crypto Full Beginners Guide in 2021
CRYPTO EDUCATION: A beginners guide for accountants and IFAs
-
Altcoins2 months agoHere Are the 10 Altcoins To Watch in April As Risk Tolerance Swells in Crypto, Says Trader Luke Martin
-
Education2 months agoHow To Invest In Crypto Full Beginners Guide in 2021
-
Education2 months agoCRYPTO EDUCATION: A beginners guide for accountants and IFAs
-
Education2 months agoBitcoin: How Cryptocurrencies Work
-
Usecase7 days agoBTT (BITTORENT) SIAP NAIK !?? SETELAH EVENT 10 JUNI?? PREDIKSI DAN ANALISA BTT (BITTORENT) 2021 !!
-
liquidity2 months agoUnistake - The Big Reveal | The Importance of Liquidity for Cryptocurrency
-
Usecase2 months agoRobert Kiyosaki: WE ARE SCREWED - The Future Of Money Lies In Crypto, Bitcoin And Blockchain
-
Technology2 months agoBlockchain technology ante enti ? What is Blockchain ? Telugu Version
