As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week's top stories highlighting the intersection of these old guard and new school areas of finance with this recap compiled by The Fly.
MUSK ADDS BITCOIN REFERENCE TO TWITTER BIO: Tesla (TSLA) chief executive officer Elon Musk added #bitcoin and the symbol for the cryptocurrency to the masthead of his official Twitter bio on Friday, sending the price of bitcoin higher. The CEO also sent out a cryptic tweet, which read, “In retrospect, it was inevitable”. The move comes after much speculation regarding whether Musk will purchase bitcoin or add the cryptocurrency to Tesla’s balance sheet.
COINBASE PLANS TO GO PUBLIC VIA DIRECT LISTING: Coinbase Global (COIN) announced Thursday its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission. Coinbase Global previously announced on December 17, 2020 that it had confidentially submitted a draft registration statement on Form S-1 with the SEC. The Form S-1 is expected to become effective after the SEC completes its review process, subject to market and other conditions.
MARATHON INVESTS $150M IN BITCOIN: Marathon Patent Group (MARA) announced Monday that it has purchased 4,812.66 BTC in an aggregate purchase price of $150M. Marathon said, “As a result, the company has strengthened its position as one of the only Nasdaq-listed, pure-play investment options for individuals and institutions seeking exposure to bitcoin.” To ensure the purchase was conducted effectively, Marathon worked with NYDIG, a technology and financial services firm dedicated to bitcoin. The company also announced Thursday that it has provided a one-year grant to bitcoin core developer Jonas Schnelli. Marathon's grant follows Coinbase's recent decision to help contribute to the development of Bitcoin Core by offering grants to two developers: Joao Barbosa and an anonymous developer known only as 0xB10C.
BOE GOV. SAYS CRYPTO UNLIKELY TO LAST: Bank of England Governor Andrew Bailey said no current cryptocurrency has a structure that is likely to enable it to be a means of payment over the long term, Reuters’ David Milliken reported Monday. "Have we landed on what I would call the design, governance and arrangements for what I might call a lasting digital currency? No, I don’t think we’re there yet, honestly. I don’t think cryptocurrencies as originally formulated are it,” he said. “The whole question of people having assurance that their payments will be made in something with stable value...ultimately links bank to what we call fiat currency, which has a link to the state.” The BoE is evaluating the feasibility of issuing its own cryptocurrency.
OVERSTOCK CONVERTS MEDICI VENTURES TO LIMITED PARTNERSHIP: Overstock.com (OSTK) announced Monday it will be converting its blockchain-focused subsidiary Medici Ventures to a limited partnership. An entity within Pelion Venture Partners will act as the general partner of the fund and Overstock will be a limited partner in the fund. After closing, the Pelion entity will have sole authority and responsibility regarding investing decisions, appointing board members of the portfolio companies, and exercising all shareholder rights for assets Medici Ventures currently holds. The fund will have an eight-year life and a total capital commitment of $45M. The fund will return invested capital to Overstock first and then split profits on successful exits. The fund will hold a "significant minority" ownership stake in tZERO Group and Overstock will retain a direct minority equity interest in tZERO. Following the announcement, Piper Sandler analyst Peter Keith reiterated an Overweight rating on Overstock.com with a $140 price target. The new structure will simplify the reporting structure for Overstock.com into more of a pureplay retail e-commerce business, Keith said. He added Overstock retains ownership stake in several "compelling" blockchain portfolio companies, but puts the portfolio into the hands of professional money managers motivated to create significant value with the blockchain assets over time. He views the conversion as "highly favorable."
CRYPTO STOCK PLAYS: Cryptocurrency revenues have been pointed to as reasons to be bullish on Advanced Micro Devices (AMD) and Nvidia (NVDA) in select research. Overstock, Ideanomics (IDEX), Riot Blockchain (RIOT), Pareteum (TEUM) and SRAX (SRAX) are other stocks that have been touted, or promoted themselves, as a way to play the crypto theme.
PRICE ACTION: As of time of writing, bitcoin rose roughly 14% this week at $37,030 in U.S. dollars, according to TradeBlock.
Bitcoin
+ (+0.00%)
Bitcoin
+ (+0.00%)
Tesla
-4.43 (-0.53%)
Coinbase
+ (+0.00%)
Marathon Digital
+2.49 (+12.55%)
OSTK
+
AMD
-0.74 (-0.85%)
Nvidia
-3.06 (-0.59%)
Ideanomics
+0.015 (+0.38%)
Riot Platforms
+3.04 (+15.27%)
Pareteum
+ (+0.00%)
Srax
+0.26 (+8.15%)