opinion

Crypto SWOT: MicroStrategy bought even more Bitcoin between March 24 and April 4

Kitco Media
By Frank E Holmes
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Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Solar, rising 56.33%.

  • Bitcoin trended toward the high end of its recent range of around $28,000 this week, while Dogecoin continued to benefit from Elon Musk's flirtation with the meme token. Bitcoin rose by as much as 3.1% on Tuesday, its first session higher in three, writes Bloomberg.

  • MicroStrategy bought 1,045 Bitcoin for $29.3 million between March 24 and April 4, reports Bloomberg. As of April 4, the company held roughly 140,000 Bitcoins in total.

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Mask Network, down 12.54%.

  • Paxful, an Africa-focused Bitcoin trading platform, is suspending its operations, the company's co-founder, Ray Youssef said in statement, citing key staff departures and growing regulatory challenges, writes Bloomberg.  

  • Cryptocurrency exchange BAM Trading Services, and its identity-verification vendor Jumio Corp, must face a proposed class action, reports Bloomberg. The lawsuit alleges the exchange collected account holders' facial geometry in violation of the Illinois Biometric Information Privacy Act.

Opportunities

  • OpenSea has launched a new platform catering to the needs of advanced collectors as it seeks to stay competitive amid new market entrants. One of the key features of the new platform is the live cross-marketplace data function that allows collectors to track user and collection activity across various NFT trading venues, writes Bloomberg.  

  • On-chain analysis indicates that Mechanism Capital's Andrew Kang purchased an additional 1.51 million Arbitrum tokens at $1.23 with approximately 1.85 million USDC. Another Arbitrum whale withdrew 5.85 million tokens from the exchange, worth approximately $21.5 million at current prices.

  • Singapore banks are working with the city-state's authorities to set uniform standards on screening potential customers from the crypto and digital assets sectors, writes Bloomberg.  

Threats

  • Tether Holdings doesn't have direct access to the U.S. banking system, explains Bloomberg, but for a while it found at least one pathway through Signature Bank. Tether instructed crypto clients to pay for its stablecoins by sending dollars to its Bahamas-based banking partner Capital Union Bank via Signature's Signet payments platform.

  • The overwhelming majority of cryptocurrency owners aren't paying taxes on their holdings, according to a study by a Swedish tech company. Globally, just 0.53% of cryptocurrency investors declared their cryptocurrency activity to their local tax authorities in 2022, writes Bloomberg.  

  • Jane Street Group, Tower Research Capital, and Radix Trading are the three unidentified trading firms cited as VIP clients of Binance Holdings in a top U.S. regulators lawsuit against the cryptocurrency exchange. The CFTC last week accused Binance of “sham” compliance with U.S. derivatives regulations including to keep Americans of the exchange as promised, writes Bloomberg.
Kitco Media

Frank E Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

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Frank Holmes
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