Digital assets are about more than just Bitcoin. The global adoption of blockchain, expansion of cross-border payments, new investment vehicles tied to intellectual property, and more, could one day establish a global market of digitized assets worth $50 trillion. This channel provides access to the latest developments, opportunities, risks, and thought leaders in the growing Digital Assets space.
In a unique plug for bitcoin’s adoption, MicroStrategy (NASDAQ: MSTR), the business information firm, has decided to pay its non-employee directors in bitcoin. The company has been a trendsetter, setting aside millions of dollars from its reserves to invest in bitcoin. Now its directors will get bitcoin in lieu of their services.
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Northern Data AG (ETR: NB2) is a high performance computing (HPC) company providing solutions for AI and blockchain including crypto mining. At its data center in Texas, it operates HPC applications in blockchain such as bitcoin mining for large corporations. According to Bloomberg, the company is mulling a $500 million IPO in the U.S.
Finansinspektionen (FI) was established in 1991 to create a single integrated regulator covering banking, securities, and insurance in Sweden. As the country’s financial supervisory authority, it issued a warning today on the risks surrounding purchases of financial instruments with bitcoin or other crypto-assets as an underlying asset.
According to Daniel Ives, an analyst at Wedbush Securities, Tesla (NASDAQ: TSLA) may end up making more money from its investment in bitcoin than from the sale of its EVs cars in all of 2020. The company is already sitting on unrealized profits of approximately $1 billion from its $1.5 billion investment in bitcoin.
MicroStrategy (NASDAQ: MSTR), the business information company that has recently become a cheerleader for corporate investing in bitcoin, announced today the closing of its offering of 0% convertible senior notes, due 2027, of an aggregate principal amount of $1.05 billion. The company said it will use the proceeds, which the markets are describing as “free money,” to buy additional bitcoin.
On Tuesday, Bleeping Computer reported that Kia Motors USA was experiencing a nationwide outage that affected its servers, dealer platforms, and phone support services. The size and scope of the dislocation led Bleeping Computer to speculate that “this is likely more than just a scheduled maintenance.” However, on Wednesday it reported unequivocally that the DoppelPaymer gang had unleashed a ransomware attack on Kia, demanding $20 million in ransom.
NYDIG, a subsidiary of Stone Ridge Asset Management, filed an application for a bitcoin ETF with the SEC on Tuesday. With the change in administration at the SEC, NYDIG is eyeing better chances of the regulator finally approving a bitcoin ETF. It joins VanEck and Valkyrie, previous ETF applicants at the SEC. The new ETF proposed by NYDIG is dubbed the “NYDIG Bitcoin ETF.”
Blockchain.com announced today the closure of a strategic financing round that raised $120 million. Investors included Moore Strategic Ventures (Louis Bacon), Kyle Bass, Access Industries, Rovida Advisors, Lightspeed Venture Partners, GV (aka Google Ventures), Lakestar, Eldridge, and others.
MicroStrategy (NASDAQ: MSTR), the listed business information company that has already accumulated 71,079 bitcoin since August 2020, is planning another binge buy of the leading cryptocurrency. This morning CEO Michael Saylor tweeted his intentions of buying bitcoin worth $600 million by issuing convertible notes to fund the investment.
Executives of Figures Technologies, the mortgage blockchain startup launched by ex-SoFi CEO Mike Cagney, have filed for a SPAC that will raise $250 million. Figure Acquisition Corp I, as it is called, is an affiliate of Figure Technologies and has real estate specialist Elliot Management on board as an investor.
The Ontario Securities Commission has cleared for launching the Purpose Bitcoin ETF. Purpose will be the first in the world to invest directly in physically settled Bitcoin. It will therefore be similar to gold or silver ETFs which are backed by precious metals. Purpose, however, will be backed by physically settled holdings in bitcoin.
Bitcoin is currently trading at $48,024.32, up over 8% but marginally off the fresh all-time high of $48, 297.35 it hit earlier today. Likely triggers were crypto-positive announcements by Mastercard (NYSE: MA) and BNY Mellon (NYSE: BK), and a hint by U.S. Securities and Exchange Commissioner Hester Peirce (a.k.a. “Crypto Mom”) that the U.S. capital markets are ready for a bitcoin exchange-traded product.
Speculation is rife on whether other corporates would follow the trend set by companies such as Tesla (NASDAQ: TSLA), MicroStrategy (NASDAQ: MSTR), and Square (NYSE: SQ) that invested in bitcoin. Apart from putting $1.5 billion of bitcoin on its balance sheet, Tesla also said it would soon accept bitcoin in payment for its electric vehicles.
Argo Blockchain PLC (LON: ARB), a UK-based crypto miner said today it had signed an LOI to acquire 320 acres of land in West Texas, USA for a proposed 200 MW mining facility to be built in the next 12 months. Argo would have access to up to 800 MW of electrical power, of which a majority would be from renewable sources.
Cheap power generated using coal in the Xinjiang province is a magnet for bitcoin miners. That trend will only intensify now that bitcoin has hit an all-time high above $47,000 after Elon Musk revealed Tesla’s $1.5 billion investment in the crypto.
Bitwise Asset Management, a digital assets manager and index provider, has filed a new prospectus with the SEC to launch a Crypto Innovators’ ETF. The new ETF will track the performance of crypto innovators.
RBC Capital Markets analyst Mitch Steves recommends that Apple (NASDAQ: AAPL) should throw its hat into the digital assets ring and build trading of cryptos into its Apple Wallet. The analyst said Apple could generate substantial revenues given the experience with cryptos at PayPal (NASDAQ: PYPL) and Square Inc (NYSE: SQ).
Bitcoin reacted highly bullishly to Monday’s SEC filing by Elon Musk’s Tesla (NASDAQ: TSLA) which showed the EV-maker had invested $1.5 billion in the leading cryptocurrency.
A star-studded lineup supports a new $72M VC Fund eyeing crypto. Private equity stalwart Glenn Hutchins along with son James Hutchins and partner Travis Scher launched the new fund and attracted hedge fund billionaire Paul Tudor Jones, Raj and Indra Nooyi (the latter being the former CEO of PepsiCo), and James Todd Smith, a.k.a LL Cool J as investors.
It is now clear the the much-publicised, allegedly Russian hack on beleaguered US IT company SolarWinds (NYSE: SWI) in December was not the only one. According to a Reuters report, suspected Chinese hackers also had a go at the company and succeeded in breaching computers at the National Finance Center and other U.S. government agencies.
Alternative Investments/Digital: Blockchain-Based Tokenization Could Revolutionize Alternatives (Report)
Alternative assets offer better options for investors these days when the traditional 60:40 portfolio looks risky and generates insufficient returns. Though suffering from comparatively poorer liquidity alternatives could provide much-needed diversification and better risk-adjusted returns for investors. However, these investments have traditionally been accessible to institutions and high net worth individuals. Tokenization may change the status quo, giving retail investors an opportunity.
A rise in crypto adoption, institutional support, and money-printing by global central banks could propel bitcoin to a price of $ 60,000, according to Jesse Cohen, a senior financial analyst at Investing.com.
Visa (NYSE: V) announced today the pilot launch of its new suite of crypto APIs in collaboration with digital neobank First Boulevard. The APIs will enable the bank’s customers, which are predominantly from the Black community, to purchase, custody and trade digital assets.
Gemini, the crypto exchange and custodian founded by the Winklevoss twins, has launched its Earn product effective Tuesday. It offers interest to customers who elect to lend their cryptos. Though the rate of interest various amongst the 26 cryptos that Gemini supports, the rate could be as high as 7.4% APY (annual percentage yield) for Filecoin. Earn offers 3.05% on bitcoin.
Alternative Investments/Digital Assets: WisdomTree’s CyberSecurity ETF Addresses Vulnerabilities From WFH
The new WisdomTree Cybersecurity Fund (WCBR) ETF seeks to exploit the megatrend towards cybersecurity following the pandemic in 2020. The seemingly overnight pivot to work-from-home, distance learning, and digital communications have laid bare the security vulnerabilities at enterprises across the globe.