As a seasoned researcher with a keen interest in the dynamic world of blockchain and cryptocurrencies, I find myself continually intrigued by the strategic moves of companies like MicroStrategy. The company’s relentless pursuit of Bitcoin, despite its recent financial shortcomings, is nothing short of audacious. It’s a gamble that could potentially yield significant returns if BTC prices keep climbing, or it could lead to further financial strain if market conditions shift.
As a researcher, I’m excited to share that MicroStrategy is aggressively expanding its Bitcoin (BTC) reserve approach. On November 11, the company revealed another substantial acquisition of this digital currency, augmenting their reserves with an additional 27,200 BTC at approximately $2.03 billion in cash.
Based on their reports, the company bought Bitcoins during the period from October 31st to November 10th. The average price they paid for each Bitcoin was approximately $74,463, taking into account all related fees and costs.
Among all companies, MicroStrategy stands out as the biggest Bitcoin owner, with significant mining firms trailing behind. As per the “Saylor Tracker,” a platform named after its founder and chairman, Michael Saylor, MicroStrategy currently owns approximately 279,420 Bitcoins, valued at around $24.9 billion given the current price of roughly $89,000 for each coin.
Across several purchases over the past few years, the estimated dollar-cost-averaging price per coin has been $42,888.13.
MicroStrategy is borrowing money through debt notes to finance its Bitcoin investment approach, with the intention of accumulating an additional $42 billion worth of Bitcoin over the next three years. The company’s shares, which serve as a means to gain exposure to Bitcoin, have surged by 418% in 2024 up until November 14th.
Regardless of its stock’s performance and increased interest in Bitcoin, the company still fails to meet analyst forecasts. On October 31st, it announced revenues of $116.1 million, representing a 10.3% decrease compared to the previous year and falling approximately 5.22% short of market estimates.
This week’s edition of Crypto Business News covers the latest acquisitions by Coinbase and Kaiko, Mara Corporation’s Q3 financial results, and the launch of MoonPay’s fresh fiat payment platform.
Coinbase launches COIN50 Index to track digital assets
As a researcher delving into the dynamic world of cryptocurrencies, I’m excited to share that Coinbase, a leading crypto exchange, has unveiled a new index – the Coinbase 50 Index (COIN50). This innovative tool tracks over 50 digital assets, providing insights into broader market trends. Interestingly, six cryptocurrencies account for 91% of this benchmark’s weight: Bitcoin, Ether (ETH), Solana (SOL), Dogecoin (DOGE), XRP (XRP), and Cardano (ADA).
Kaiko acquires Vinter to secure lead in crypto indexing, analytics
Crypto analytics firm Kaiko has acquired Vinter, a regulated European crypto index provider, expanding its presence in exchange-traded products (ETPs) across Europe. The ETP sector in Germany, Sweden and Switzerland currently holds around $13.64 billion in assets under management. Vinter, registered with the European Securities and Markets Authority, administers benchmarks for ETPs on exchanges such as SIX, Nasdaq, Euronext, and Deutsche Boerse Xetra. This is Kaiko’s third acquisition. In 2022, the company purchased Kesitys, a provider of risk optimization tools, followed by the acquisition of Napoleon Index from CoinShares.
MARA Holdings falls 9% after-hours after Q3 revenue miss
In post-market trading, Bitcoin mining company MARA Holdings (previously Marathon Digital) dropped by 9.1% as its third-quarter earnings failed to meet the revenue predictions set by analysts. The financial results published on November 12 revealed a loss of $0.34 per share, slightly surpassing Wall Street’s expectations, but still falling short of the projected $148.1 million in revenue with a reported $131.6 million. Despite an increase of 34.5% in quarterly revenue compared to the previous year, this figure fell short of estimates. Additionally, MARA experienced a $40 million rise in operational expenses during Q3, leading to a net loss of $124.8 million for the quarter.
MoonPay boosts self-custodial crypto spending with new solution
MoonPay has launched a new payment feature called MoonPay Balance, which allows users to keep and utilize fiat balances in euros and British pounds within MoonPay. This tool serves as an entry point for users to engage with decentralized finance. With its seamless integration with non-custodial or self-custodial wallets such as MetaMask, Phantom, Bitcoin.com wallet, users can now effortlessly spend their balances. At the moment, MoonPay Balance is accessible in the United Kingdom and most European countries, except for Germany.
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2024-11-16 00:45