Coinbase Global, Inc. has unveiled its strategy to generate billion through the issuance of convertible bonds set to mature in 2030. This plan includes a provision for initial buyers to acquire an extra 0 million to address any over-allotments. Coinbase revealed that the proceeds would be allocated for “working capital and capital expenditures.” Coinbase […]
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Crypto Exchange Kraken Shares ‘Real Story’ of SEC Lawsuit — Claims SEC Seeks ‘Boundless Authority’ Over Commerce
Cryptocurrency exchange Kraken has shared what it called “the real story” of the lawsuit against it by the U.S. Securities and Exchange Commission (SEC). Kraken also explained why it is moving to dismiss the case. “Crypto innovators in the United States should not have to fear retaliation for their political speech. They should be free […]
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Bitcoin ETFs Boosts Coinbase (COIN) Shares As JPMorgan Upgrades Rating
The recent Bitcoin rally, propelling its price to the ,000 level, has positively impacted the stock of US-based cryptocurrency exchange Coinbase (COIN). After experiencing a notable dip to 5 at the start of February, Coinbase’s stock rose to 2 on Thursday, following a significant upgrade by a JPMorgan analyst.
Improved Prospects For Coinbase Amid Crypto Rally
According to a Bloomberg report, JPMorgan analyst Kenneth Worthington abandoned his bearish view on Coinbase weeks after downgrading the stock.
As Bitcoin traded higher, Coinbase shares gained as much as 7.8% following the upgrade. Worthington believes the exchange will likely benefit from the recent rally in digital asset prices, prompting him to shift his rating back to neutral.
This change in stance comes after Worthington’s January downgrade, where he predicted a potential deflation of enthusiasm for Bitcoin exchange-traded funds (ETFs).
However, contrary to his previous forecast, Bitcoin ETFs have been successful in terms of trading measures, and the price of Bitcoin has surged beyond ,000, reaching its highest level since 2021. In a note to clients on Thursday, Worthington explained:
Given the acceleration in recent days of flows into Bitcoin ETFs and the significant price appreciation of Bitcoin and now Ethereum, we are returning to a Neutral rating on Coinbase as we see the higher cryptocurrency prices not only sustaining but improving activity levels and Coinbase’s earnings power as we look to 1Q24.
Coinbase’s stock experienced an 8% dip at the beginning of the year, following an impressive 400% surge in 2023. Analyst opinions on the stock remain divided, with buy, hold, and sell recommendations being roughly evenly split.
Worthington maintained his price target on the stock ahead of the company’s earnings report, which is scheduled to be released after the market closes on Thursday.
Worthington emphasized that Coinbase’s business is closely tied to token prices, with its core revenue being transaction-based. As the value of tokens increases and trading activity gains momentum, fees based on the value traded are expected to drive higher trading volumes, ultimately contributing to improved revenue for Coinbase.
Bitcoin ETFs Witness Significant Trading Volume
On February 14th, the trading volume of Bitcoin ETFs showcased notable figures, with Blackrock’s IBIT recording the lead with 1 million in volume.
Grayscale’s Bitcoin Trust (GBTC) followed closely with 9 million, while Fidelity’s FBTC secured the third spot with 6 million. On the other hand, Ark Invest accumulated a volume of 9 million.
The nine ETFs’ total trading volume amounted to approximately .5 billion. Notably, the largest ETFs experienced higher trading volume than the previous day, with IBIT surpassing 0 million and GBTC exceeding 0 million.
Intriguingly, before the trading session, GBTC sent less than half of the Bitcoin it sent to Coinbase the previous day. Despite this decrease, GBTC’s total trading volume was 50% higher.
As the demand for Bitcoin continues to surge, ETFs play a crucial role in facilitating institutional and retail investors’ participation in the cryptocurrency market. The increased trading volume of Bitcoin ETFs highlights investors’ growing interest and confidence in digital assets.
Currently, Bitcoin is trading at ,900 and encountering a critical resistance level at ,000.
Featured image from Shutterstock, chart from TradingView.com
Report: Genesis Global Cleared to Unload $1.3 Billion in GBTC Shares
Genesis Global Capital has received authorization to offload its stake in Grayscale’s Bitcoin Trust (GBTC), valued at approximately .3 billion. Genesis Global Permitted to Liquidate .3 Billion in Bitcoin Trust Shares According to Bloomberg, Genesis Global Holdco LLC secured Judge Sean Lane’s approval to liquidate its GBTC investments, currently estimated at .3 billion. The request […]
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FTX Estate to Monetize AI Investment, Seeks Sale of Anthropic Shares Amid Bankruptcy Proceedings
In a significant move within the crypto bankruptcy landscape, FTX Trading Ltd. has announced its intention to sell its equity interests in the artificial intelligence (AI) firm, Anthropic PBC. Holding close to an 8% stake, valued between approximately .47 billion to upwards of .4 billion, FTX is navigating its Chapter 11 bankruptcy with this strategic asset liquidation. This sale marks a pivotal step in FTX’s efforts to maximize returns for creditors from its high-value, illiquid assets.
FTX Aims to Sell Close to 8% Stake in the AI-Giant Anthropic
FTX and its affiliates, amidst their ongoing Chapter 11 bankruptcy proceedings, have motioned for court approval to sell their shares in Anthropic PBC. The motion outlines a structured sale process, aimed at divesting the shares free of any encumbrances. FTX’s stake, acquired through a significant investment round, represents a notable share in Anthropic, reflecting the depth of FTX’s entanglement in high-tech ventures prior to its financial upheaval.
The backdrop of FTX’s investment in Anthropic traces back to a series of financial maneuvers, culminating in a substantial equity position through a 0 million investment. This move was emblematic of FTX’s broader strategy to diversify its portfolio across cutting-edge technologies, demonstrating the former crypto exchange’s ambitious reach beyond its core operations. The decision to liquidate its stake in Anthropic comes as FTX seeks to navigate its complex bankruptcy situation, striving to unlock value from its illiquid assets for customer compensation.
The proposed sale, as detailed in the court filing, underscores the significance of Anthropic’s valuation in the AI sector, pegged between .4 billion to billion. FTX’s stake, approximately 7.84%, is positioned as a high-value asset within its bankruptcy estate. This liquidation strategy is reflective of the growing interest and perceived value in AI technologies, where Anthropic has emerged as a key player. The sale process aims to leverage this momentum, offering a rare opportunity for stakeholders to engage with one of the AI industry’s most promising ventures.
As the bankruptcy court scrutinizes FTX’s proposal, the suggested divestiture of Anthropic shares marks a pivotal moment in the bankruptcy proceedings. This development follows creditors expressing dissatisfaction that their digital currency payouts will reflect the valuations from November 2022. For example, a bitcoin (BTC) in FTX’s possession would be appraised at ,871 each, despite its present value of .9K. In response, four clients lodged a grievance, appealing to the judiciary for equitable resolution and asserting that the assets are the rightful property of the clients, not the exchange.
What do you think about FTX planning to sell it’s Anthropic shares? Share your thoughts and opinions about this subject in the comments section below.
Ripple IPO: Wall Street Veteran Explains Why Shares Could Surge 2000% Before Public Listing
Pro-XRP Wall Street financial analyst Linda Jones recently shared her thoughts on a potential Ripple Initial Public Offering (IPO). Specifically, she elaborated on her belief that the crypto firm was currently undervalued and how the company’s stocks could still rise before it went public.
Why Ripple’s Stock Could Be Worth 20 Times Its Current Price
Linda Jones used Coinbase’s IPO as a mirror to explain why Ripple’s stock could be worth 20 times its current valuation. She noted that Coinbase was valued at billion when it initially went public, and its stocks traded for as high as 9 during that period. If Ripple were to follow a similar path, then its stock price would be worth more than the , which it is currently valued at by private equity platform Linqto, Jones claimed.
Interestingly, the analyst factored in Ripple’s escrowed XRP holdings while trying to estimate how much the crypto firm could eventually be valued. According to her, Ripple could be valued as high as 7 billion if those escrowed funds (said to be worth billion) are added to the billion (if Ripple were to be valued similarly to Coinbase).
Going by Jones’ analysis, Ripple having a valuation of 7 billion means that the company’s stocks could trade at 0 on the first day of being publicly listed. The analyst then went on to lay out a possible scenario where Ripple is valued at more than 7 billion, the amount under consideration.
How Ripple Could End Up Being Worth Half A Trillion
Linda Jones also mentioned that Ripple could end up being worth half a trillion if the SEC’s case against Ripple were to end soon and XRP rises back to its all-time high (ATH). If the latter happens, Ripple’s escrowed XRP holdings will be worth around 0 billion. That could ultimately increase Ripple’s value to about 0 billion, the analyst claims.
Jones believes that Ripple being valued at 0 billion during the IPO isn’t farfetched, considering that there are companies that are already valued at up to a trillion. She further compared Ripple to the likes of Apple, Microsoft, and Nvidia, suggesting that the crypto firm could match up to these blue chip companies.
The financial analyst’s belief in Ripple’s potential is why she boldly claims that purchasing Ripple’s stock now is a great investment, as it will only go “up” from here. She also predicts that there could be a new record for a company at its valuation, and Ripple could be that company.
Bitcoin Mining Rig Manufacturer Canaan Raises $50 Million Through Preferred Shares Sale
In a recent disclosure to the U.S. Securities and Exchange Commission (SEC), Canaan, a publicly traded manufacturer of bitcoin mining rigs, announced it has secured million through the sale of preferred shares. This follows a successful acquisition of million in a similar preferred share sale conducted by Canaan last year.
Canaan Sells Preferred Shares to an Unnamed Institutional Buyer
Canaan (Nasdaq: CAN), known for producing Avalon-branded application-specific integrated circuit (ASIC) bitcoin mining rigs, successfully garnered million by selling preferred shares. This financial boost was highlighted in a January 2024 SEC Form 6-K filing, revealing that the shares were purchased by an undisclosed “institutional buyer.”
This announcement comes on the heels of Canaan’s previous venture in the previous year, where on Nov. 27, 2023, the company sold shares amounting to million. The ASIC producer has specified that these funds will be allocated towards research and development as well as covering the company’s operational expenses. Established for a significant period, Canaan is recognized for launching the first publicly-available ASIC miner in 2013.
Canaan marked its entry into the public market with an initial public offering (IPO) on the Nasdaq Global Market in 2019. The firm debuted on Nasdaq on Nov. 21, 2019, with the ticker symbol “CAN,” amassing million from the IPO. Nonetheless, since its introduction, CAN’s shares have seen a decline of 88% from their original value, with a 41% decrease observed year-to-date.
In the last five trading days, Canaan’s stock has experienced a downturn, dropping slightly over 17% in value against the U.S. dollar. Amidst this, Canaan has been proactive in rolling out new products. Celebrating its tenth anniversary towards the close of 2023, the company unveiled two new mining devices. One of these devices boasts an efficiency rating of under 20 joules per terahash, on par with the high-performance mining rigs produced by rivals Microbt and Bitmain. Recently, Cipher Mining has inked a deal to acquire 16,700 bitcoin miners from the company.
What do you think about Canaan raising million from a preferred share sale? Share your thoughts and opinions about this subject in the comments section below.
FTX Unloads $1 Billion GBTC Shares; Will The Bitcoin Rally Be “Vicious”?
Fred Krueger, an investor and crypto analyst, is predicting a “vicious” Bitcoin (BTC) rally shortly. He cites the recent unprecedented accumulation of the coin by Wall Street heavyweights.
This surge in institutional interest coincides with the recent approval of the first spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC).
Wall Street Ramping Up Bitcoin Purchase
In a post on X, Krueger pointed to the substantial Bitcoin purchases by major financial institutions, including Fidelity Investments, BlackRock, and Ark Invest. To illustrate, the analyst noted that Fidelity was buying approximately 4,000 BTC every day.
Related Reading: Bitcoin Goes To The Doctor: 5 Key Metrics For BTC In 2024
On the other hand, Ark, Krueger continues, has been gobbling upwards of 1,500 BTC daily. BlackRock, the world’s largest asset manager, has yet to release its Bitcoin holdings. However, based on the pace of Ark Invest and Fidelity Investment’s accumulation rate, BlackRock is likely buying coins at a faster pace. So far, Lookonchain data places BlackRock’s IBIT holdings of BTC at over 44,000.
If anything, the rate at which these Wall Street institutions are doubling down on Bitcoin is a net bullish for price. Notably, BTC demands remain high more than a week after the United States SEC authorized the first spot of Bitcoin ETFs. That they are steadily buying suggests that institutions are bullish about Bitcoin’s potential.
The heightened pace of BTC accumulation is less than three months before the network halves its miner rewards. The Bitcoin halving event in early April will reduce miner rewards from 6.25 BTC to 3.125 BTC. If past price performance guides, the resulting supply shock might trigger another wave of higher highs, even lifting prices above 2021’s peaks of ,000.
BTC Falls, FTX Unloads Millions Of GBTC Shares
Even amid the overall optimism, BTC is still struggling. Days after the approval of spot Bitcoin ETFs, BTC has been trending lower, shedding double digits. It even temporarily fell below ,000 on January 23 before recovering to spot rates.
Analysts pin the sell-off to FTX, the defunct crypto exchange, off-loading an estimated billion of Grayscale Bitcoin Trust (GBTC). With the FTX estate selling their stake in GBTC, prices are expected to stabilize as the unique selling event is alleviated and institutions double down, buying more BTC at spot rates.
Observers also note that GBTC outflows were matched or surpassed by the spike in inflow to other funds, mostly BlackRock’s ETF product.
Trillion-Dollar Franklin Templeton Shares High Praise For Solana, Is A SOL ETF Coming?
American multinational asset management company Franklin Templeton has showered high praises on Solana, triggering widespread speculation about the potential of a Solana ETF in the future.
Franklin Templeton’s Approval Of Solana Sparks ETF Talks
On Wednesday, January 17, Franklin Templeton’s official X account expressed their admiration for the Solana, commending the blockchain network’s progress and continuous developments within its ecosystem.
The asset management company highlighted Solana’s notable accomplishments during the fourth quarter of 2023. Specific mentions were made regarding Solana’s innovative NFT projects over the past months, its impactful presence in the DeFi ecosystem as well as the introduction of new inventive meme coins like Dogwifhat, Myro Popcat, and more. Franklin Templeton also outlined additional achievements like Solana’s next-generation independent validator client, Firedancer, and its innovative DePIN projects.
Although Solana previously experienced a significant decline in its NFT market, the blockchain network’s NFT sales volume witnessed a resurgence after recording a staggering increase recently. On Wednesday, Solana’s NFT volume rose above 92% on the Tiexo marketplace. Furthermore, the blockchain recorded substantial increases on two other prominent marketplaces, Tensor and Magic Eden, respectively.
Overall, Franklin Templeton’s overwhelming praise for the Solana ecosystem was taken with great optimism by the crypto community and SOL supporters. The favorable remarks sparked discussions regarding the potential introduction of a Solana ETF.
Since Spot Bitcoin ETFs gained approval from the United States Securities and Exchange Commission (SEC), many investors, including Ripple CEO Brad Garlinghouse, anticipate the eventual entry of more ETFs into the market.
Presently, the Ethereum Spot ETF stands as the next contender for approval by the SEC. And the final deadline for approving or rejecting several Ethereum Spot ETF applications is slated for May 23, 2024.
Community Members Skeptical About Potential SOL ETF
As excitement spreads in the crypto community over a possible Solana ETF, various crypto enthusiasts express differing views and opinions on its likelihood. It’s important to note that despite the enthusiasm, there has been no official discussion or confirmation of a Solana ETF by the cryptocurrency’s developers or executives.
Concerning a potential Solana ETF, a crypto community member, Lex has highlighted reasons why such a notion might face challenges. In the post, he outlined the SEC’s potential involvement in the decision regarding a Solana ETF. According to the community member, the SEC “would never approve a SOL ETF.”
Another member also provided a more in-depth explanation for the rejection of a Solana ETF, asserting that as the SEC had previously classified Solana as a security, it may not greenlight a Solana ETF unless a court officially declares the cryptocurrency as a non-security.
However, in response to these speculations, Franklin Templeton said:
The lawyers won’t let us respond to comments, but we hear you
Ark Invest Continues to Sell Coinbase Shares
In a strategic move, Ark Invest has offloaded another portion of its Coinbase holdings, selling over million worth of COIN shares from its ETFs. This decision aligns with Ark’s target weighting policy and follows Coinbase’s strong performance in the last quarter of 2023.
Ark Invest Sells Over Million in Coinbase Shares Amid Portfolio Rebalancing
Ark Invest, led by CEO Cathie Wood, has been actively selling shares of Coinbase (Nasdaq: COIN), further reducing its stake in the crypto exchange, although Coinbase still is one of the most significant assets of Ark’s portfolio.
On Jan. 3, Ark sold a total of 166,183 COIN shares from its Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW) for a value of .3 million at the closing price for the day. The following day, Jan. 4, Ark sold a further 26,743 COIN shares valued at .16 million at its closing price.
These recent sales are not out of the ordinary. Ark Invest’s ETFs are target-weighted such that no individual holding should exceed 10% of the fund’s total value. With COIN more than doubling in price in Q4 of 2023, it has exceeded that 10% target in both ARKK and ARKW, resulting in these sales. Indeed, Ark offloaded COIN shares throughout December, including million worth on Dec. 5 and million on Dec. 13.
This move comes amidst the impending U.S. Securities and Exchange Commission (SEC) announcement on spot bitcoin ETFs. The SEC is currently considering 13 proposed spot bitcoin ETFs. The first deadline is Jan. 10 for the joint application submitted by Cathie Wood’s ARK Invest and 21shares. Coinbase has announced plans to roll out spot Bitcoin and Ethereum products to international clients and plans to extend these offerings to retail investors in the coming months.
Ark Invest has made moves in other areas related to crypto. It liquidated its remaining Grayscale Bitcoin Trust (GBTC) holdings worth 0 million in late December, and it reallocated about half of these funds into Bitcoin Futures ETF Bito.
Will Coinbase continue its stellar performance if a spot bitcoin ETF is approved? Share your thoughts and opinions about this subject in the comments section below.