Block Inc. has announced its strategy of regularly purchasing bitcoin for its corporate balance sheet via dollar-cost averaging (DCA). The company plans to allocate 10% of its monthly gross profit from bitcoin products towards investments in the cryptocurrency. “We view bitcoin as an instrument of global economic empowerment; it is a way for individuals around […]
Bitcoin News
Tesla Maintains Bitcoin Holdings — Balance Sheet Shows $184 Million in Digital Assets
Elon Musk’s electric car company, Tesla, has maintained its bitcoin holdings. The company’s Q1 balance sheet shows net digital assets of 4 million. According to crypto analytics firm Arkham, Tesla continues to hold onto its 11,509 bitcoins, which have a market value of over 5 million. Tesla Holding Onto Its Bitcoin Elon Musk’s electric car […]
Bitcoin News
Tesla Maintains Bitcoin Holdings — $184M in Digital Assets Shown on Balance Sheet
Elon Musk’s electric car company, Tesla, has maintained its bitcoin holdings. The company’s balance sheet for Q4 2023 shows net digital assets of 4 million. Musk is convinced that in the long term, Tesla will be the most valuable company on earth. The billionaire recently disclosed that another of his companies, Spacex, also owns “a bunch of bitcoin.”
Tesla’s Bitcoin Holdings Stand at 4 Million
Tesla, Elon Musk’s electric car company, released its fourth quarter 2023 earnings on Wednesday, showing net digital assets of 4 million on its balance sheet. Tesla has held this amount of digital assets since the fourth quarter of 2022.
Tesla previously explained that its digital assets were made up almost entirely of bitcoin (BTC), noting that while the company accepts the meme cryptocurrency dogecoin (DOGE) for some merchandise, the amount of dogecoin it has accumulated is very small.
Musk acknowledged during the earnings call that “there’s going to be bumps along the way” for Tesla, but he insisted:
Long term, I am convinced that Tesla will be the most valuable company on earth.
Tesla invested .5 billion in BTC in Q1 2021 but sold 75% of its holdings in Q2 2022. Musk explained at the time that the company is “certainly open” to increasing its bitcoin holdings in the future, noting that the sale was due to concerns about the company’s overall liquidity, “given Covid shutdowns in China.”
The billionaire also recently disclosed that another of his companies, Spacex, also holds “a bunch of bitcoin.” Moreover, Musk himself owns “a bunch of” dogecoin alongside bitcoin and ether (ETH). While Musk and his companies hold cryptocurrencies, he recently said that he doesn’t spend a lot of time thinking about crypto. He also said in November last year that none of his companies will ever create a crypto token.
The Tesla boss is currently building his social media platform X into what he envisions as a “powerful” financial platform. He aims for users to conduct all their financial activities on X, potentially eliminating the need for traditional bank accounts. X has secured 12 money transmitter licenses across the U.S.
What do you think about Tesla maintaining its bitcoin holdings? Let us know in the comments section below.
Gaming Firm Boyaa Interactive to Add Bitcoin and Ether to Balance Sheet With $100M Investment
Recently disclosed in a regulatory statement, Hong Kong-based Boyaa Interactive International Limited announced its plan to acquire cryptocurrency assets valued at up to 0 million. This publicly listed entity, known for developing and managing online card and board games through its various subsidiaries, aims to channel some investments into bitcoin (BTC), ethereum (ETH), and two stablecoin assets.
Boyaa’s Strategic Play: 0 Million in Crypto to Bolster Balance Sheet
With the ambition of joining the ranks of publicly traded companies incorporating crypto assets into their balance sheets, Boyaa Interactive has released details of a forthcoming acquisition. Listed on the Hong Kong Stock Exchange with the ticker 0434.HK, the company’s stock witnessed a 7% increase on Wednesday morning Eastern Time. Established in 2004, Boyaa Interactive’s forte lies in creating and operating a broad range of web and mobile games.
The gaming firm’s portfolio includes popular games like Mahjong Games, Texas Hold’em, Ant Wars, Chinese Chess, Fight the Landlord, Boyaa Ball Pool, and Big Two Poker. The planned crypto acquisition is a key part of Boyaa’s strategy for growth and expansion into the realm of Web3. Currently valued at approximately .7 million, Boyaa Interactive intends to add BTC, ETH, USDT, and USDC to its financial reserves. The company’s filing indicates that the 0 million investment is a strategic move in line with its Web3 objectives.
According to the company’s filing, “The cryptocurrencies that the group intends to purchase under the acquisition mandate will consist mainly of bitcoin (BTC) and ether (ETH). It is currently expected that the company will use approximately US million to acquire BTC and ETH.”
The filing notes that Boyaa’s board has sanctioned this deal, with purchases planned on reputable, regulated, and licensed trading platforms in the open market. The gaming firm highlighted Hashkey Exchange as one of the crypto exchanges to be utilized. Additionally, Boyaa has established a “specialized supervisory team” focused on overseeing the crypto investments. In its detailed explanation, Boyaa emphasized that the online gaming industry “has high compatibility with Web3 technology.”
What do you think about Boyaa’s decision to add bitcoin and other crypto assets to its balance sheet? Share your thoughts and opinions about this subject in the comments section below.
FTX Debtors Reveal $6.8 Billion Hole in Balance Sheet Amidst Financial Discrepancies and Payments to Insiders
According to a presentation recently submitted by the FTX debtors on March 16, Sam Bankman-Fried’s companies had a .8 billion hole in their intercompany balance sheet when they filed for Chapter 11 bankruptcy protection. FTX and its conglomerate of firms have debts of around .6 billion, including customer claims and various other liabilities.
FTX’s .8 Billion Gap
The FTX debtors have released a third presentation that provides an overview of FTX’s debts and liabilities. The presentation reveals that, while a significant amount of money is owed to customers, FTX and its few subsidiary firms also owe funds to certain vendors, counterparties, and unpaid invoices. Some of the vendors include Margaritaville Beach Resort owned by Jimmy Buffett, Amazon Web Services (AWS), Fairview Asset Management, Stripe, Meta, Trulioo, Spotify, Turner Network Television, and American Express.
Advisers concluded that when FTX filed for bankruptcy, the more than 100 companies under its umbrella had a .8 billion gap in their balance sheet. Approximately .8 billion of this amount is against a colossal .6 billion, according to the presentation. FTX US had a shortfall of about million, despite Bankman Fried’s repeated claims that the U.S. subsidiary was solvent. The disgraced FTX co-founder’s quantitative trading firm, Alameda Research, held the “vast majority of third-party loans,” according to the advisers’ notes.
Alameda had an interesting relationship with many entities and protocols, as it borrowed from “approximately 80 different counterparties.” Furthermore, much of the collateral was based in FTT, SRM, and SOL, and crypto asset volatility “resulted in many lenders issuing margin calls and call notices.” FTX debtors reviewed internal communications, onchain activity, and loan documents and discovered that loans were not recorded in FTX’s historical accounting records. “Additional tracing of wallet and blockchain activity remains an ongoing matter,” the advisers explained.
Forty-nine companies are ghost towns, identified as “dormant” because they have no historical payments or financial information. Advisers say nine FTX entities provided their payment records directly, and 12 FTX entities in Europe and Asia did the same. About 30 of the FTX entities used Quickbooks to keep operational books and records. Regarding political donations, “payments identified on [Federal Election Commission] website that were not classified as donations on the debtors’ books and records,” the presentation notes.
Additionally, a page called “payments to insiders” shows Bankman-Fried was paid roughly .247 billion. Former FTX director of engineering Nishad Singh reportedly received 7 million, and FTX co-founder Gary Wang earned 6 million. Former FTX co-CEO Ryan Salame allegedly received million, and Sam Trabucco made million, according to FTX debtors. The former Alameda CEO, Caroline Ellison, received million in payments and loans, as detailed in the payments to insiders spreadsheet.
Overall, FTX debtors discovered major financial and accounting discrepancies within the company, along with substantial payments made to insiders. The situation is opaque, but it’s evident that FTX’s financial problems are more extensive than initially reported. The presentation notes that the financial data was not audited and is subject to change as the bankruptcy proceedings continue.
What do you think this means for the future of FTX and its subsidiaries? Share your thoughts and insights in the comments below.
Sam Bankman-Fried Addresses $8 Billion Balance Sheet Deficit, The Key Takeaway
The entire crypto market bled with multiple losses and asset devaluation after the collapse of Sam Bankman-Fried’s crypto exchange FTX. In addition, crypto firms exposed to FTX got a fair share of the bitter pill.
Investigations have been ongoing to determine the location of the billion hole in FTX’s balance sheet, which caused the liquidity crunch.
The deficit in FTX’s balance sheet kept growing. The firm initially declared only billion and later said it was billion. The hole has now grown to over billion.
In a recent Bloomberg interview, Sam Bankman-Fried (SBF), FTX former CEO, revealed the whereabouts of the funds. SBF said he showed investors a separate balance sheet at an emergency bailout.
According to the report, SBF listed .9 billion in debt, billion in liquid assets, and .4 billion in less liquid assets. The report also mentioned .2 billion in illiquid assets.
Sam Bankman-Fried Reveals Conflicting Balance Sheets
He revealed another balance sheet showing the actual situation at the time of the bailout meeting. The balance sheet bears similar numbers but billion less liquid assets. SBF said he misquoted the numbers.
He added that customers were transferring money to Alameda Research instead of sending it directly to FTX. According to his statement, FTX’s internal audit system double-counted the amount and credited it to both firms.
Following SBF’s statement, FTX and Alameda Research had the highest cash flow, but Binance, a rival, became the highest expense. He paid a net amount of .5 billion to buy out Binance’s investments. SBF also revealed that he spent 0 million on real estate and about .5 billion on other expenses.
Some billion and .5 billion went into venture capital investments to acquire other firms, while they counted billion by mistake.
The report also stated that SBF and the remaining employees spent the previous weekend attempting to raise funds. The funds are to fill the billion hole in FTX’s balance sheet and repay customers.
Cause of FTX Collapse: Fraud Or Mismanagement?
Meanwhile, most people in the crypto space say the FTX crisis is a fraud and not an accident. On Wednesday, during his first public appearance after the collapse of FTX, Bankman-Fried insisted that he did not commit fraud. He claimed that he was unaware of the extent of damage and what was going on with FTX.
In an interview with The New York Times, SBF blamed the collapse of the billion FTX exchange on poor accounting and management failures. This comment triggered civil and criminal investigations. The investigation aims to determine whether FTX committed a crime by lending customers’ funds to Alameda Research.
However, FTX’s new CEO, John Ray III, in charge of the firm’s bankruptcy proceeding, expressed disgust at the situation. In his words, Ray said he had never seen such a complete failure of corporate control, condemning SBF for unacceptable management practices.
Featured image from Texas Tribune, chart from TradingView.com
NewsBTC
How To Add Bitcoin To The Balance Sheet For Corporations, With Saylor & Dorsey
Is your company ready to buy the Bitcoin dip? Saylor and Dorsey will give you the 411 for free.99. The MicroStrategy World annual conference goes live on February 1st. Learn directly from these two titans of the industry, who have definitely been among Bitcoin’s main proponents and promoters over the last few years.
Michael Saylor has led by example, buying every dip, and is a constant presence in mainstream media. His interviews are more like classes and the attention they get is outstanding. Jack Dorsey, for his part, left Twitter to focus on Bitcoin. Since then, his Block company announced several projects that’ll definitely strengthen the Bitcoin network.
About the MicroStrategy World conference, the press release promises it’ll be “focused on Enterprise Analytics and Bitcoin for Corporations. World 2022 is 100% virtual, and—for the first time ever—access to all sections of the conference is free of charge.” That’s an unbeatable price.
What Will Saylor And Dorsey Talk About?
The conference has two sides, two different events that showcase MicroStrategy’s duality:
“The Enterprise Analytics event will introduce bold new ways to think about analytics and business intelligence, and showcase organizations who’ve used data as a strategic differentiator. The Bitcoin for Corporations event will explore the various benefits of incorporating Bitcoin into corporate initiatives.”
Join me and Keynote Presenter @jack at the 2nd Annual Bitcoin for Corporations Feb 1 & 2. This free, virtual conference is a must for any corporation considering integrating #Bitcoin with their products & services, or adding #BTC to their balance sheet.https://t.co/V9fIkv633q
— Michael Saylor (@saylor) January 20, 2022
As you might expect, NewsBTC will focus on the second event. It’s important to say that both Dorsey and Saylor’s companies have Bitcoin on their balance sheet. These two put their money where their mouth is, and then some. In any case, what does MicroStrategy World promise?
“An in-depth discussion on Bitcoin between two visionary voices: Jack Dorsey, CEO of Block, Inc., and Michael Saylor, CEO of MicroStrategy Inc. This session will be followed by a discussion on Bitcoin Treasury with Phong Le (President and CFO, MicroStrategy). Bitcoin for Corporations will also feature live interviews with industry experts from Coinbase, Deloitte, Fidelity Digital Assets, Genesis, Jefferies, NYDIG, Paxos, and Silvergate Bank.”
It’s noteworthy that Fidelity Digital Assets recently shocked the world by predicting more countries and probably a Central Bank or two would add Bitcoin to their balance sheet in the next few years. Christine Sandler, Fidelity’s Head of Sales & Marketing, will represent the company at the conference.
Saylor ’s Recent Bitcoin History
Since MicroStrategy first added Bitcoin to its balance sheet in August 2020, the company has increased the bet every few months. They issued common stock. They sold stocks. They bought, and bought, and bought, and bought. In a recent interview, Saylor explained the strategy and NewsBTC reported:
“Look, our long term strategy is kind of like Harvard University. We’re running a university but we have an endowment. MicroStrategy is selling enterprise software. We generate 0 million in cash flow a year – in a good year – and we are reinvesting that cash in our endowment. Our endowment is 100% bitcoin.”
Saylor adds that MicroStrategy plans to acquire and hold bitcoin as a balance sheet. As for the operations, the company will continue to sell its enterprise software everywhere in the world.”
Related to this, about MicroStrategy’s free conference, Saylor said:
“We have gained a wealth of experience and expertise innovating our treasury strategy and evolving our corporate bitcoin acquisition strategy. And we’re pleased to be in a position to share our knowledge—via this curated event—for corporations looking to pursue similar strategies and bold initiatives.”
Dorsey’s Recent Bitcoin History
For his part, Dorsey’s strategy is much different than Saylor’s. He’s working in infrastructure. Dorsey’s fortifying the network’s weak parts. Among other things, Block announced they’re building a decentralized Bitcoin exchange called tbDEX. Released the Lightning Development Kit. And announced they’re working in an open-source ASIC miner.
On a personal level, Dorsey and rapper Jay-Z put 500 BTC in a blind trust to promote Bitcoin development in Africa and India. And created the Bitcoin Defense Legal Fund to protect developers from all kinds of lawsuits.
BTC price chart for 01/21/2022 on Gemini | Source: BTC/USD on TradingView.com
The Price Of Bitcoin
Despite Saylor’s and Dorsey’s efforts, Bitcoin is bleeding. On one hand, Proof-Of-Stake proponents straight up lied before U.S. Congress in a hearing about Proof-Of-Work’s environmental risks. On the other, there’s a rumor that Russia is considering banning Bitcoin in some capacity. Both of those situations caused panic in the market, and Bitcoin’s price is currently 40% lower than the ATH of K.
Will Michael Saylor buy the dip?
Featured Image: screenshot from the conference’s website | Charts by TradingView
NewsBTC
Bitcoin Falls To $43k After Fed FOMC Meeting Report Show Commitment To Decrease Balance Sheet
As the price of Bitcoin hovers just around ,000, the cryptocurrency community is buzzing with expectation. This is due to the sideways price action following Federal Reserve commitment to decrease balance sheet.
Bitcoin and Crypto Market Crash
The price of bitcoin fell below ,000 shortly after the Federal Reserve’s December FOMC meeting notes re-confirmed efforts to regulate the balance sheet.
After minutes from the Federal Reserve’s December FOMC meeting revealed that the regulator is dedicated to reducing its balance sheet and hiking interest rates in 2022, Bitcoin (BTC) and the wider cryptocurrency market plummeted as stock markets pulled back at the closing bell.
BTC’s price dropped to ,000 as stock markets corrected. This triggered a wave of liquidations that totaled 2 million in less than an hour.
The market in bloodbath. Source: Coin360
According to TradingView data, Bitcoin was struck by a wave of selling that pushed the price to an intraday low of ,717 after bouncing around support near ,000 for a few days.
BTC/USD Crash to k. Source: TradingView
It is expected that the Fed will begin raising its benchmark interest rate in March, “which would mean that balance sheet reduction could start before summer.”
Related article | Altcoin Underdogs Outperform Bitcoin To Kick Off 2022
Rekt Capital Foreshadows Similarities
The chart below was posted by crypto analyst and pseudonymous Rekt Capital, showing the “many similarities between this BTC range and May 2021.”
BTC/USD 1-week chart. Source: Twitter
According to Rekt Capital,
“Both saw BTC consolidate inside two Bull Market EMAs (i.e., green 21-week & blue 50-week EMA). If BTC is to repeat history, a capitulation event could take place where BTC briefly deviates below the blue 50 EMA.”
If the price does not break back over ,000, the market may be in for a prolonged bear market. BTC may retrace to the low ,000 region.
The Securities and Exchange Commission (SEC) of the United States postponed its decision on NYDIG’s spot bitcoin exchange-traded fund by 60 days on Tuesday (ETF). The delay led to a negative sentiment in the crypto markets, with several tokens experiencing a quick sell-off following the announcement.
Related Reading | Bitcoin Open Interest Reaches Dangerously High Values, Leverage Flush Coming?
Featured image from Unsplash.com, charts from TradingView.com, Coin360
NewsBTC
Blockchain Firm Chainalysis Is Adding Bitcoin To Its Balance Sheet
Chainalysis has announced that it plans to add bitcoin to its balance sheet. The news came as a surprise to crypto investors as it is usually expected that a firm so deeply ingrained in the blockchain technology ecosystem would own some crypto. According to the blog post on its website, the firm had previously not owned any cryptocurrencies and this will be the first time Chainalysis is purchasing BTC.
Bitcoin has been purchased as an investment strategy by companies who are in and out of the blockchain space. The digital asset presents an alternative means of investment for people who want to have total control of their assets. With its recent purchase, Chainalysis joins the ranks of companies who are holding BTC for the long term, according to statements on the post.
Chainalysis Takes The Leap With Bitcoin
Chainalysis revealed in the post that it was buying bitcoin to put on its balance sheet. The company which is valued at .2 billion will put the purchased BTC in its corporate investment portfolio and intends to hold for the long term.
Related Reading | Number Of Bitcoin Whales On The Rise As BTC Chases New All-Time High
The company provides valuable software analysis software that helps exchanges comply with regulations. Its software is also used to assess risk and identify illegal activities that are being carried out on the blockchain, helping law enforcement to track the perpetrators.
Co-founder and CEO of Chainalysis, Michael Gronager, said, “Chainalysis is laser-focused on its commitment to building trust in cryptocurrency as a digital asset and we are thrilled to be adding bitcoin on our corporate investment portfolio.” Speaking on this being the first cryptocurrency purchase on the part of the firm, Gronager added, “This is Chainalysis’ first acquisition of cryptocurrency, and we will continue to pursue other digital assets as potential future investments.”
BTC surges past K | Source: BTCUSD on TradingView.com
Partnership With NYDIG
In order to purchase and custody the bitcoins, Chainalysis had expanded its partnership with bitcoin technology and financial services firm NYDIG. Both firms have been working together since they announced that Chainalysis would be NYDIG’s compliance technology partner in 2018. The BTC was purchased through the financial services firm and NYDIG will custody the digital assets on behalf of Chainalysis.
Related Reading | Strike Launches New Feature To Allow Users Convert Salaries To Bitcoin
“Our expanding partnership with Chainalysis is a mutually beneficial relationship. Chainalysis has long been building trust in the digital asset ecosystem, and this investment shows their belief that bitcoin is a sound investment for the future. We are happy that they trusted our platform to safeguard their assets.” – Nate Conrad, Head of Asset Management, NYDIG
The acquisition highlights Chainalysis’ long-standing faith in BTC as a long-term investment strategy. Bitcoin has been a profitable investment venture for companies that have invested in the digital asset in the past and Chainalysis stands to profit from the asset’s growth in the future.
Featured image from Bitcoin News, chart from TradingView.com
NewsBTC
SpaceX Has Bitcoin On Its Balance Sheet, Elon Musk
Elon Musk has revealed that Space X, his rocket company, owns and continues to hold bitcoin. Musk was on The B Word conference to talk about bitcoin and other cryptocurrencies, alongside well-known personalities in the crypto space like Twitter CEO Jack Dorsey, and CEO of Ark Invest Cathie Wood.
The trio was also joined by Steve Lee, who is the Lead for Square Crypto, which is an arm of Square dedicated to digital currencies. The panelists are all BTC investors, with Jack Dorsey and Elon Musk confirming that they both personally own the digital asset.
Related Reading | Make It Rain Satoshis: Las Vegas Strip Club Starts Accepting Bitcoin Payments
Cathie Wood’s Ark Invest has continued to pour more money into firms involved in the crypto space. Ark Invest was one of the first to invest in Coinbase when the crypto exchange had gone public, with approximately B already invested in the company by Ark Invest. Also owning about 7 million shares in the Grayscale Bitcoin Trust.
Significant Bitcoin Holdings
Talking further about his holdings in crypto, Musk explained that the only significant holdings he possessed besides Tesla and SpaceX happened to be bitcoin. Confirming that the rocket company SpaceX held bitcoins, Musk said that the company is not selling the digital asset anytime soon.
Related Reading | Billionaire Tim Draper Is Unfazed By Market Downtrend, Doubles Down On 0,000 Bitcoin Price Target
While it was public knowledge that Tesla held the digital asset after it had started receiving payments in the asset for its electric cars earlier in the year, there had been no confirmation if the billionaire’s other company SpaceX held any of the digital assets.
Speculations continued in the market that SpaceX had indeed bought into the digital asset after Tesla. Now, Musk has confirmed that this is true, that the spaceship company did in fact hold the crypto on its balance sheet.
Tesla Might Resume Accepting Bitcoin Payments
Back in April, electric automaker, Tesla had confirmed in an SEC filing that the company had indeed bought .5 billion worth of bitcoin which is held on its balance sheet. Not too long after this, the automaker announced that it had started accepting payments in the digital asset for its electric vehicles.
The market reaction to this news was immense as the price of the asset rose quickly in response to this announcement. But then at the beginning of March, the company retracted this payment option, citing the environmental impact of mining as being the reason it would no longer accept payments in the digital asset.
Related Reading | Cathie Wood’s Ark Invest Sinks Another .8 Million Into Grayscale’s Bitcoin Trust
Talking about this decision and if there was any chance of Tesla going back to accepting bitcoin payments, Musk explained that the company would most likely resume accepting the digital asset as a method of payment. But that a little more due diligence is required in order to confirm that the energy usage of bitcoin mining was at least 50% renewable.
Although Musk has now confirmed that SpaceX holds the digital asset, the billionaire did not disclose how much of the digital asset the rocket ship company currently holds on its balance sheet.
BTC currently trading at above ,000 | Source: BTCUSD on TradingView.com