opinion

Crypto SWOT: Texas aims to become the top state to establish a strategic Bitcoin reserve

Kitco Media
By Frank E Holmes
Published:
Updated:
Kitco Commentaries
Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Crypto SWOT: Texas aims to become the top state to establish a strategic Bitcoin reserve teaser image

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Story, rising 143%.
  • Crypto security firm Blockaid has secured fresh funding as the platform gears up to tackle rising cybercrime risks in the digital asset space. The company raised $50 million in a series B round led by Ribbit Capital, Bloomberg reports.  
  • According to Bloomberg, Texas aims to become the top state to establish a strategic Bitcoin reserve, following President Trump's suggestion of creating a federal reserve using the cryptocurrency.

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Official Trump, down 30%.
  • Nigerian authorities sued crypto exchange Binance for over $79 billion in economic losses and $2 billion in back taxes, explains Bloomberg. Nigeria’s tax authority, Federal Inland Revenue Service, also claimed Binance operated illegally within the country.
  • Czech central bank Governor Ales Michl urges caution for those investing in crypto assets, saying the market is still in its infancy. Bitcoin should not be lumped together with other crypto assets according to Michi, writes Bloomberg. 

Opportunities

  • Cryptocurrency options exchange Deribit is still talking to Kraken for a potential acquisition contrary to reports that the U.S. exchange had walked away from a potential deal to buy Derbit. The firm could be valued at $4 billion -$5 billion or even more, according to Bloomberg.  
  • The estate of bankrupt crypto exchange FTX has begun distributing cash to creditors more than two years after the platform imploded. Customers should start to see the funds within one to three business days the estate said.  
  • The Bitcoin-buying strategy has gained momentum as the cryptocurrency's price surged last year, prompting President Trump to suggest a U.S. Bitcoin reserve. Following MicroStrategy's lead, Semler Scientific has purchased tens of millions of dollars in Bitcoin, with the stock doubling since the move, according to Bloomberg.

article image

Threats

  • An estimated 86% of crypto traders that took positions in a meme coin endorsed by Argentine President Javier Milei on Friday ended up losing money. The losses in the token called Libra totaled an estimated $251 million while the minority of traders who profited made a combined $180 million, writes Bloomberg.  
  • Crypto exchange Bybit said one of its wallets was hacked, resulting in what crypto analysts say is the theft of an estimated $1.5 billion worth of cryptocurrency. A hacker took control of one of Bybit’s offline Ethereum wallets the CEO said in a post on Friday.
  • Coinbase CEO Brian Armstrong has cautioned against insider trading related to meme coins, stressing that such actions are illegal and could result in prison time. In a February 19 post on X, Armstrong raised concerns about insider trading in the meme coin market, according to 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).

Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

The S&P/TSX Global Gold Index is an international benchmark tracking the world’s leading gold companies with the intent to provide an investable representative index of publicly-traded international gold companies. The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.

Holdings as a percentage of net assets as of 6/30/07: Jiangxi Copper (China Region Opportunity Fund 1.74%); Silvercorp Metals Inc. (World Precious Minerals Fund 2.78%, Global Resources Fund 0.89%, China Region Opportunity Fund 2.42%); Gold Fields Ltd. (Gold Shares Fund 6.05%, World Precious Minerals Fund 2.58%, Global Resources Fund 0.39%); Sino Gold Mining Ltd. (Gold Shares Fund 1.03%, World Precious Minerals Fund 0.58%, China Region Opportunity Fund 0.27%); Anglogold Ashanti (0.0%); Dynasty Gold (0.0%).

Mdi Earth Logo

Tags:

BitcoincryptoFTX
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.