Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Dogecoin, rising 18.45%.
- U.S. exchange-traded funds (ETFs) investing in Bitcoin saw an $870 million net inflow, their third-highest daily haul, as the digital asset flirts with a record high amid speculation about potential outcomes of the U.S. election. Some analysts cite Republican nominee Donald Trump’s elevated odds in election betting markets for the growing demand for Bitcoin exposure, writes Bloomberg.
- MicroStrategy Inc. has hired banks to help it raise $42 billion through the sale of new shares and fixed income to buy more Bitcoin after a flurry of deals over the past year. The company hired a handful of banks to sell stock through a so-called at the market offering that could net it $21 billion, reports Bloomberg, while lining up potential sales of fixed-income securities that could bring in the same amount.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was IMX, down 20.07%.
- Shares of Coinbase Global fell the most in more than two years after the largest U.S. crypto exchange posted results late Wednesday that were below Wall Street expectations. Total revenue increased to $1.21 billion, writes Bloomberg, less than analysts’ forecast of $1.25 billion.
- The U.S.-based cryptocurrency exchange Kraken is laying off workers as part of organizational changes following the appointment of a new co-chief executive. Kraken wants to become leaner and faster while streamlining operations.
Opportunities
- Visa customers with eligible debit cards will be able to deposit funds into their Coinbase Global accounts via a partnership announced by the payments giant and crypto exchange. Coinbase already has millions of connections to customers’ debit cards, but this new development allows for the real-time flow of funds for customers, writes Bloomberg.
- The crypto prime brokerage market is booming, and new firms are popping up to get a share of the growth. Growing institutional interest from hedge funds, family offices, and sovereign wealth funds is pushing the valuation of crypto prime brokerages higher, and the bull market is helping the cause, writes Bloomberg.
- Superscrypt, a blockchain venture capital company backed by Temasek Holdings, plans to raise up to $100 million for its second investment fund, according to people familiar with the matter. Singapore’s state-owned investment company Temasek has been lined up as an anchor investor in the new fund alongside the New York-based fintech firm Republic, writes Bloomberg.
Threats
- Consensys, a software provider for the Ethereum network being sued by the SEC, blamed regulatory uncertainty caused by the agency in part for its decision to eliminate 162 positions or 20% of its workforce, Bloomberg reports. Consensys operates the popular crypto wallet MetaMask as well as provides a slew of blockchain tools and products.
- A cryptocurrency investment scam using the same acronym as the New York Stock Exchange defrauded victims after luring them in with online dating apps. Trading platform NYSE.LPQV.Live solicits inexperienced investors through apps like Tinder, and then directs them to open legitimate cryptocurrency accounts to fund the investments in NYSE, according to Bloomberg.
- Citadel securities lawsuit accusing Portofino Technologies AG of trade-secrets thefts can largely move forward against the high-frequency crypto trading startup but not a seed investor in the firm. Citadel securities claimed two former London-based employees secured funding from investors to launch Portofino in Switzerland with trade secrets stolen from the market-making firm, writes Bloomberg.
