Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Aster, rising 193%.
- A tight circle of crypto power players, including Mike Novogratz and Dan Morehead, are shaping the digital-asset treasury boom, with around 85 public companies raising billions from investors, writes Bloomberg.
- Theta Capital Management is seeking to raise $200 million for its latest blockchain fund-of-funds. The fund will allocate capital to 10 to 15 venture firms specializing in digital assets and is targeting a net internal rate of return of 25%, writes Bloomberg.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was 0G, down 28%.
Much of this year’s price buildup was fueled by crypto treasury firms—public companies that raised money to accumulate assets. Token purchases by these companies have slowed as falling share prices limited their ability to raise capital for new buying. The pullback has weakened demand and added to the pressure behind the latest plunge in digital assets, writes Bloomberg.
- An Ether whale took a multimillion-dollar loss on its bullish bet Thursday after the cryptocurrency’s price dipped below $4,000 for the first time since August 8. The whale, identified by the address Oxa523, had its leveraged bullish position worth 9,152 forcibly liquidated by the decentralized exchange Hyperliquid, according to blockchain analyst Lookonchain, writes Bloomberg.
Opportunities
- Tether Holdings SA is raising up to $20 billion in a private placement that could value the company at around $500 billion, making it one of the most highly valued private firms globally. The stablecoin issuer is leveraging its early lead to build a strong competitive advantage and amass a multibillion-dollar fund to invest across sectors like AI, crypto mining, and commodities, according to Bloomberg.
- Crypto market-maker GSR has filed to launch a fund called the GSR Digital Asset Treasury Companies ETF, which will bundle companies holding digital assets in their corporate treasuries into a single investment. The fund will also seek private investments in public equity, writes Bloomberg.
- SoftBank Group and Ark Investment Management are potential investors in a major funding round for Tether Holdings SA. The company is seeking $15 to $20 billion for about a 3% stake, which could value Tether at up to $500 billion, writes Bloomberg.
Threats
- Cryptocurrency traders saw more than $1.5 billion in bullish wagers liquidated on Monday, triggering a sharp selloff that sent Ether and other tokens plunging. This was the largest wave of liquidations across cryptocurrencies since at least March 27, according to Coinglass data reported by Bloomberg.
- Purchases by publicly traded digital-asset treasuries dropped from 64,000 Bitcoin in July to 12,600 in August, and 15,500 so far in September, according to CryptoQuant. Regulators are investigating unusual trading activity in digital-asset treasury shares, with some treasuries that raised money through PIPE deals seeing their shares fall as much as 97% below issue price, writes Bloomberg.
- Bitcoin and Ether extended losses amid a broader decline in risk sentiment, erasing over $140 billion in market value. Ether fell as much as 8.2% to below $4,000, its weakest level in nearly seven weeks, while Bitcoin slipped below $110,000 for the first time in four weeks, writes Bloomberg.
