Bitcoin busts through a trillion dollars in market cap, MicroStrategy borrows big for more Bitcoin, and how many financial executives view Bitcoin as a valid investment? These stories and more, this week in crypto.
For the first time ever, Bitcoin’s market capitalization surpassed $1 trillion following the price surging well over the $50000 mark. The altcoin market has also enjoyed remarkable gains with Ethereum over $2000 and Binance’s BNB coin up by more than 100% this week.
Business intelligence company MicroStrategy had completed a $1.05 billion debt offering to spend that on buying more Bitcoin. The company first began buying the digital currency in August of last year when it was trading for around $12,000 per unit and has purchased more than 70000 coins so far.
BlackRock, the world’s largest asset management firm, said that they’ve “started to dabble a bit into it”, but refusing to put a target allocation. BlackRock just allowed two of its funds to invest in Bitcoin futures last month and confirmed the company is currently sitting on a lot more cash than they have historically had because traditional hedges don’t work.
Elon Musk, the ever-active on social media platforms CEO of Tesla and SpaceX has updated his Twitter profile with an avatar of Bitcoin. Furthermore, Musk added that owning bitcoin is “adventurous enough for an S&P500 company” because the asset is “simply a less dumb form of liquidity than cash.”
A new survey suggests that despite MicroStrategy’s and Tesla’s strong positioning on Bitcoin, still nearly 85 percent of financial executives say that they will never consider Bitcoin a valid investment. Many of those interviewed claimed that bitcoin cannot be taken seriously thanks to its ongoing bouts of volatility and its concerns about cybersecurity issues.
Hester Peirce, “Crypto Mom” of the Securities and Exchange Commission is calling for clearer regulation in the world of cryptocurrencies. Peirce said that with major companies purchasing heavy amounts of BTC, it is time for a stronger and more clarified legislation as she doesn’t want to see these companies invest in assets they potentially don’t understand.
With Bitcoin’s price on the rise, Coinbase—one of the largest and most powerful digital trading platforms —is now worth roughly $77 billion according to the latest valuation. Should this momentum hold once the company goes public, the trading firm is set to become larger than the Intercontinental Exchange.
Canaan Creative—one of the largest crypto mining firms listed on the NASDAQ, saw the price of its stock rise by more than 40 percent. This brings the company’s stock increases to more than 770 percent in the past six months alone – despite recently reporting a heavy shortage of mining equipment.
Finally, our very own 99Bitcoins recently took over the dead coins project. Dead Coins was founded in 2017 to keep track of all of the cryptocurrencies that are no longer in use or aren’t actively maintained. The project lists over 1500 altcoins and every day new coins are added to the list through the help of the crypto community. Have a coin you think is no longer active? Head over to deadcoins.com and send it our way.
That’s what’s happened this week in crypto. See you next week.
A special thanks to eToro for sponsoring this video.