As a seasoned analyst with over two decades of experience in the financial markets, I must say that the 2024 crypto landscape has been nothing short of extraordinary. Watching Bitcoin, once a fringe asset, become a mainstream financial instrument is akin to witnessing the internet’s infancy evolve into the interconnected world we live in today.
2021 has been an extraordinary year for Bitcoin! Just about 16 years following its initial network launch, it firmly established itself as a standard financial tool by securing the approval of 11 Exchange Traded Funds (ETFs) in January.
The launch of ETFs was one of the most historically successful debuts, primarily driven by demand from institutions, particularly those focusing on Bitcoin. By year’s end, these funds had accumulated over $113.5 billion. This surge contributed significantly to Bitcoin’s (BTC) price reaching unprecedented highs of $100,000 in December, largely supported by institutional buyers.
By December 2024, institutional acceptance of Bitcoin extended beyond Exchange-Traded Funds (ETFs), as numerous publicly listed corporations began incorporating Bitcoin into their financial assets. This decision might function as an effective risk management tool and a potentially high-risk investment opportunity.
Since 2020, MicroStrategy has spearheaded this strategy, acquiring approximately 444,000 Bitcoins for its reserves. On December 23rd, the company proposed a plan to the U.S. Securities and Exchange Commission, aiming to secure shareholder approval to continue purchasing Bitcoin up until 2025.
Some may say Bitcoin is now far from its ethos centered around principles of decentralization, but the core ideals remain embedded in its network, operating independently and allowing individuals anywhere to store and transfer wealth.
This week’s Crypto Business Insights delves into the latest developments: Crypto.com’s novel custodial service, the semi-prohibition of cryptocurrency mining in Russia, and tax implications on staking rewards within the United States.
MicroStrategy calls shareholders meeting to fund more Bitcoin purchases
As a crypto investor, I’ve found myself excited about MicroStrategy’s announcement of a special shareholders meeting. The goal is to secure approval for broadening our equity-issuance plan, enabling us to continue our Bitcoin investment journey. We aim to increase the number of authorized shares for Class A common stock and preferred stock, giving us more flexibility in raising capital. This move is part of MicroStrategy’s 21/21 Plan, a strategic initiative to acquire an additional $42 billion worth of Bitcoin over the coming three years, primarily through equity sales and fixed-income securities. With over 444,000 BTC already in our possession as of Dec. 24, we’re eager to speed up our coin acquisitions even further. The market has responded positively, with MicroStrategy’s stock value soaring over 420% in 2024, a significant boost largely attributed to our Bitcoin strategy.
Crypto.com launches US institutional custody service
Crypto.com has initiated a U.S.-based service for securely storing digital currencies aimed at American institutions and high-value individuals, known as the Crypto.com Custody Trust Company. This step is part of their broader strategy to boost their influence in North America, particularly the United States and Canada. Over time, assets belonging to both U.S. and Canadian clients will be moved to this new trust company. Recently, Crypto.com’s CEO, Kris Marszalek, met with U.S. President-elect Donald Trump at Mar-a-Lago to discuss cryptocurrency policies.
Russia bans crypto mining for 6 years in 10 regions
Starting January 1, 2025, and lasting until March 2031, a ban on cryptocurrency mining has been sanctioned in ten specific regions of Russia, such as Dagestan, Chechnya, and parts of Donetsk. Moreover, during the winter months from November to March each year, seasonal restrictions will be implemented in Irkutsk, Buryatia, and Zabaikalsky regions to avoid energy shortages. These measures are aimed at maintaining a balance between energy consumption and the development of the cryptocurrency industry, with key mining areas like Irkutsk experiencing only partial restrictions instead of complete bans, as initially proposed. The final decisions have been refined to minimize broader mining prohibitions.
IRS doubles down on crypto staking taxes: Report
As a cryptocurrency investor, I’ve recently learned that the Internal Revenue Service (IRS) has reiterated its standpoint: staking rewards are taxable as soon as they’re received, not when they’re sold. This decision comes in response to a lawsuit filed by Joshua and Jessica Jarrett, who argued that their staking rewards should be treated as property, only taxable upon sale. However, the IRS maintains that these rewards are considered taxable income at their market value when received. This ruling could establish a notable precedent for how staking rewards are taxed within the United States. This is just another chapter in the Jarretts’ ongoing legal battle, which began in 2021, over taxes on staking rewards derived from Tezos tokens.
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2024-12-28 00:34