Per the CEO of Hut 8, a bitcoin mining company listed on the Toronto stock exchange, major financial institutions have made inquiries to purchase bitcoin directly from the firm. Additionally, the Hut 8 executive emphasized the forthcoming halving event’s “big impact,” noting a surge in demand juxtaposed with a reduction in available bitcoins. Financial Giants […]
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American business intelligence and software development company, MicroStrategy has unveiled new plans to acquire an additional Bitcoin, further bolstering its already substantial BTC holdings.
In a recent press release published on MicroStrategy’s official website, the software development company announced plans to raise $500 million in convertible debt offerings to purchase more Bitcoin. Just a few days ago the company had sold approximately $800 million in convertible debt offerings, using the proceeds of the sale to acquire about 12,000 BTC valued at about $821.7 million at the time.
Quite frankly, MicroStrategy seems to be on a full-blown Bitcoin acquisition spree, potentially attributed to the cryptocurrency’s massive bullish rallies recently and its surge to new all-time highs. As of March 11, 2024, the business intelligence firm possesses a total of 205,000 BTC, worth over $15 billion based on CoinMarketCap’s Bitcoin price of $73,411, at the time of writing.
With its latest purchase of 12,000 BTC, MicroStrategy has finally surpassed the Bitcoin holdings of BlackRock’s Spot Bitcoin Exchange Traded Fund (ETF). Additionally, the software development company has secured the top position as the leading public company with the largest Bitcoin holdings, surpassing the holdings of both Tesla and Coinbase.
As of March 2024, MicroStrategy’s market capitalization has surged to $29.96 billion, reflecting an increase of 10.85% in the last 24 hours. The company is also presently ranked as the world’s 642nd most valuable company by market capitalization.
Since the start of the year, MicroStrategy has purchased nearly 16,000 BTC. This time around the company has chosen to raise capital through convertible senior notes, marking a shift from the previous year when most of its funds for acquiring BTC were generated from equity.
According to Market Watch’s report, the business intelligence firm’s stock value has also been on the rise recently, with MSTR prices witnessing an impressive 145% increase in a month.
As stated in its press release, the company intends to sell convertible senior notes to qualified institutional buyers. MicroStrategy has revealed plans to grant early purchasers of the notes an option to buy up to an additional $75 million worth of the notes within 13 days after the initial issuance.
The software development firm has disclosed that the notes will remain unsecured, with interests payable semi-annually starting in September 2024. Additionally, MicroStrategy will have the right to redeem the notes from March 2028 or holders can request for the company to make a repurchase, with conversion terms determined at the offering’s prices.
The proceeds and excess funds generated from its upcoming $500 million convertible senior notes sale will be used to expand MicroStrategy’s Bitcoin holdings and for general corporate purposes.
BTC price falls to $72,700 | Source: BTCUSD on Tradingview.com
Featured image from The Guardian, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
As Bitcoin (BTC) continues its unprecedented uptrend, surging to a new all-time high (ATH) of $72,300, software company MicroStrategy remains steadfast in its vision. It is reaping substantial rewards from its strategic investment in the largest cryptocurrency in the market.
MicroStrategy, led by renowned Bitcoin supporter and former CEO Michael Saylor, recently made a major acquisition, further solidifying its position in the digital asset market.
According to a filing with the US Securities and Exchange Commission (SEC), MicroStrategy acquired approximately 12,000 BTC between February 26, 2024, and March 10, 2024, for approximately $821.7 million in cash. The average purchase price per Bitcoin was $68,400.
Additionally, MicroStrategy recently completed an offering of convertible senior notes due 2030, raising $800 million in funds. With this latest acquisition, MicroStrategy’s Bitcoin holdings now stand at a staggering 205,000 BTC, acquired for $6.9 billion.
MicroStrategy’s stock trades at $1,557, representing a remarkable 9% gain within 24 hours. The company’s shares have demonstrated a sustained and continuous upward trajectory since February 26, coinciding with Bitcoin’s $50,000 consolidation phase breakthrough.
Over two weeks, Bitcoin surged to its present trading price, establishing a notable correlation between the leading cryptocurrency and MicroStrategy. This correlation has further solidified the company’s strategy and contributed to its stock’s performance.
MicroStrategy’s strategic investment in Bitcoin has yielded remarkable results. The company now boasts a profit of $7.7 billion on its Bitcoin holdings, which translates to a remarkable return of 112% so far as Bitcoin breaks new all-time highs.
The rapid rise of Bitcoin Exchange-Traded Funds (ETFs) has surpassed even the most optimistic projections. Bloomberg ETF expert Eric Balchunas highlighted the growth of these funds in a recent post on social media site X (formerly Twitter). The expert noted that assets under management (AUM) surpassed $55 billion, and trading volume reached an impressive $110 billion.
Balchunas acknowledged that achieving such numbers in just two months was nothing short of “absurd,” far exceeding what would normally be considered successful even at the end of a full year.
In addition, in a surprising turn of events for the ETF expert, Blackrock’s IBIT ETF and Fidelity’s FBTC have emerged as the leaders among all ETFs in terms of year-to-date (YTD) flows through the middle of March. This unexpected feat positions these Bitcoin ETF offerings as major players in the ETF market, attracting the attention and interest of investors seeking exposure to the digital asset.
Currently, BTC continues its uptrend, aiming to solidify and consolidate above the $70,000 threshold, which would put the cryptocurrency in a good position to reach the $100,000 mark in the rest of the year.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Bloomberg analyst Eric Balchunas posited whether crypto exchanges would be forced to revisit their pricing structures should a spot Bitcoin ETF be approved, given the seemingly low fees charged by some of the most prominent players.
However, regarding the issuers offering lower fees, Caitlin Long of digital asset custody platform Custodia Bank raised concerns that low ETF fees could indicate problems for issuers regarding covering costs. While seemingly a direct competitor for Custodia, Long warned that ETF issuers who offer fees that are not high enough to cover their costs may resort to lending securities to offset losses.
According to the filed prospectuses of the ETF applicants, Bitcoin in custody will not be being lent in such a manner but instead held in cold storage. However, it is possible for ETF shares to be lent out with collateral backing the transaction.
We analyzed some of the top crypto exchanges to compare how low these fees are. The chart below shows the transaction fees for some of the most popular crypto platforms for traders making a market order with no promotional benefits such as staking, holding native tokens, or high trading volume.
| Exchange | Trading Fees | $100 | $200 | $2000 |
|---|---|---|---|---|
| Kraken | 0.26% | $0.26 | $0.52 | $5.20 |
| Coinbase | 0.60% | $0.60 | $1.20 | $12.00 |
| Crypto.com | 0.075% | $0.075 | $0.15 | $1.50 |
| Gemini | $0.99, 1.49% for >$199 | $0.99 | $2.98 | $29.80 |
| Cash App | 3%, 1.75% for >$199, 1.25% for >$1999 | $3.00 | $3.50 | $25.00 |
| Binance | 0.1% | $0.10 | $0.20 | $2.00 |
The chart below shows the cost of holding the equivalent values of Bitcoin for 1 year within the proposed Bitcoin ETFs currently awaiting approval.
| ETF Issuer | Fees (bps) | $100 | $200 | $2000 |
|---|---|---|---|---|
| Invesco / Galaxy | 59 bps | $0.59 | $1.18 | $11.80 |
| Blackrock | 30 bps | $0.30 | $0.60 | $6.00 |
| Bitwise | 24 bps | $0.24 | $0.48 | $4.80 |
| Ark | 25 bps | $0.25 | $0.50 | $5.00 |
| Fidelity | 39 bps | $0.39 | $0.78 | $7.80 |
| Valkyrie | 80 bps | $0.80 | $1.60 | $16.00 |
| Grayscale | 150 bps | $1.50 | $3.00 | $30.00 |
| WisdomTree | 50 bps | $0.50 | $1.00 | $10.00 |
| VanEck | 25 bps | $0.25 | $0.50 | $5.00 |
It is worth noting that to acquire any shares in the above Bitcoin ETFs, users must use a broker to make the purchase. Some brokers charge fees for custodying shares, while others charge no fees. For instance, exchanges such as Webull, eToro, and Robinhood offer zero-commission trading. In contrast, others such as Hargreaves Lansdown, BestInvest, Interactive Investor, and ig.com charge a fixed fee for U.S. ETF purchases, with some offering zero commission after a set number of fees.
This analysis will assume zero-commission trading for the proposed spot Bitcoin ETFs.
Taking this into account, it would appear that crypto.com is the cheapest exchange to purchase Bitcoin, coming at just $1.50 for a $2,000 purchase compared with the lowest ETF fee of $4.80 if held for 1 year.
However, several of the crypto exchanges above also charge withdrawal fees. Crypto.com has a 0.0006 BTC withdrawal fee of $27 as of press time. The current average network fee on Bitcoin is 0.0002 ($9.45.) Other exchanges, such as Binance, only charge the network withdrawal fee.
The chart below shows the cost to purchase and withdraw the respective amounts of Bitcoin to self-custodial using the average transaction fee as of press time.
| Exchange | Trading Fees | $100 | $200 | $2000 | Withdrawal Fees |
|---|---|---|---|---|---|
| Kraken | 0.26% | $18.26 | $18.52 | $23.20 | $18 |
| Coinbase | 0.60% | $10.45 | $10.65 | $21.45 | Network fee |
| Crypto.com | 0.075% | $27.07 | $27.15 | $28.50 | $27 |
| Gemini | $0.99 or 1.49% for >$200 | $10.44 | $12.43 | $39.30 | Network fee |
| Cash App | 3% or 1.75% for >$200 or 1.25% for >$1999 | $12.45 | $12.95 | $34.45 | Network fee |
| Binance | 0.1% | $9.55 | $9.75 | $9.75 | Network fee |
However, there is a critical difference between buying Bitcoin through an ETF or exchange. With a spot Bitcoin ETF, you would be exposed to the underlying Bitcoin, which is essentially custodied for you through the issuer and its Bitcoin custodian (for most cases, Coinbase Custody.) However, when you exit the ETF, you can do so only in cash, not in Bitcoin. That Bitcoin is held in custody for you only while you hold the shares of the ETF.
With a crypto exchange, you are again purchasing Bitcoin, which is held in custody by a third party. Yet, you can then either withdraw the Bitcoin directly to a self-custody wallet or convert it into FIAT and withdraw in cash. The difference in custody, however, is potentially significant. Should the spot Bitcoin ETFs be approved, they have come under much closer and more direct regulatory scrutiny than many crypto exchanges. The FTX debacle of 2022 highlighted how important knowing where your crypto is custodied can be.
Therefore, as of press time, of the examined services, Binance is the cheapest exchange with which to purchase Bitcoin and withdraw into self-custody. Bitwise is the cheapest ETF to buy and hold custodied Bitcoin through an exchange-traded product, and crypto.com is the cheapest crypto exchange to purchase and custody Bitcoin without withdrawal.
The top providers to purchase Bitcoin and have it held in custody on your behalf are crypto.com, Binance, Bitwise, and Ark/VanEck.
It is also important to remember that this analysis is based on a single purchase using an account with no special privileges or volume bonuses. Many exchanges offer discounts on fees for active traders, thus reducing the cost of buying and holding Bitcoin.
Celsius has filed a motion in its bankruptcy case to resolve ongoing litigation and disputed contracts and claims, seeking court approval of a settlement agreement and purchase agreement with Core Scientific.
The information was revealed in a new filing detailed in the Celsius bankruptcy hearing, outlining the mutual agreement to settle most of their respective claims, except specific convertible note claims that Celsius holds against Core.
Under the terms of the agreements, Celsius has agreed to purchase a mining site named Cedarvale from Core, a transaction valued at $45 million. Of this sum, $14 million will be paid in cash by Celsius, while the remaining $31 million will be obtained from releasing claims against Core. Celsius believes the acquisition of Cedarvale, which has the potential to increase its mining capacity by 215 megawatts once entirely constructed, will be of significant benefit to its creditors and stakeholders.
In addition to Cedarvale, Celsius will also receive a license to use specific intellectual property and mining designs from Core. This move is expected to facilitate the operation of Cedarvale and the construction of similar facilities in the future as part of the deal, which also comprises Celsius assuming specific contracts from Core related to Cedarvale.
Celsius is currently under bankruptcy, so court approval is required for the settlement and purchase agreements. Celsius has petitioned the bankruptcy court to approve these agreements, citing them as a reasonable exercise of its business judgment. Core has also filed a similar motion in its own bankruptcy case, seeking court approval of this deal. The agreements are contingent on approval by both bankruptcy courts.
The post Celsius to purchase $45M Core Scientific mining facility as part of bankruptcy settlement appeared first on CryptoSlate.
American consumers noticing an increasingly German flavor, sometimes literally, in their grocery shopping, are not imagining things.
Discount grocer Aldi’s recent announcement that it will acquire 400 Winn-Dixie and Harveys Supermarkets in the Southeast will instantly increase its growing market share, adding to German investors’ influence on U.S. grocery shopping choices.
The move will expand Aldi’s presence in Florida, Alabama, Georgia, Louisiana and Mississippi, with the grocer expected to end the year with more than 2,400 locations. Aldi CEO Jason Hart says it’s still up in the air which of those newly acquired 400 stores will be converted to Aldi and which will continue operating as Winn-Dixie and Harveys.
Aldi, owned by the German billionaire Albrecht family, has increased its Southeastern U.S. presence by purchasing market share, according to CoStar Group National Director of Retail Analytics Brandon Svec.
“Aldi is actively looking to expand, and targeting the Southeast, when market availability was at 3% and construction costs so high, made their building from the ground up very difficult right now,” he told Benzinga. “This was a pure market share play, and they gained 400 stores in one fell swoop. The (commercial) real estate read here is minimal as there are no expectations of closures.”
Asked whether this might be a shot across the bow to the dominant Publix Super Markets in the area, Svec said he believed the chain might be affected but that the overall goal for Aldi was pure market expansion.
“When you think about what flag supermarket will be most impacted, it’s Publix,” he said. “But I would read this less about engaging in direct competition and more about buying growth. They’ve gained market penetration in a high-growth area in the U.S.”
According to CoStar, Aldi has opened or signed a lease for a space at 117 locations spanning 2 million square feet in the last year. Svec said the only comparison to that rapid expansion is smaller coffee stores like Starbucks or discounters like Dollar General. Aldi is now the fourth-largest grocer in total square footage in the U.S. at a time when few other retail tenants are expanding.
Aldi is controlled by Germany’s billionaire Albrecht family, who currently own about 80% of the company through their various foundations. Another part of the Albrecht family also owns Trader Joe’s 569 specialty grocery stores while a separate German entity — the Schwarz Group — owns 181 Lidle US discount grocery stores, signing new leases on 19 spaces in the past year.
“The Germans are doing to our groceries what they’ve done to our automotive market,” Svec said.
This week’s Aldi acquisition is expected to close next year, and the company is working on a deal with the Federal Trade Commission that may mean it has to unload a few stores to get regulatory approval.
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This article The Germans Are Coming. Aldi’s Purchase of Winn-Dixie and Harveys Was Purely About Grabbing Market Share In The Southeast US originally appeared on Benzinga.com
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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Intel Corp. called off its proposed $5.4 billion acquisition of Tower Semiconductor Inc. and will pay a termination fee of $353 million to its Israeli target.
In a statement released Wednesday, the U.S. semiconductor giant said it would “terminate its previously disclosed agreement to acquire Tower due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement.”
The…
In its Aug. 1 financial results, business intelligence firm MicroStrategy said it acquired substantial Bitcoin during Q2 2023.
Andrew Kang, Chief Financial Officer at MicroStrategy, said:
“The addition in the second quarter of 12,333 bitcoins [is] the largest increase in a single quarter since Q2 2021. We efficiently raised capital… and used cash from operations to continue to increase bitcoins on our balance sheet.”
In a separate presentation, the firm said that the 12,333 BTC it bought was purchased for $347 million at an average of $28,136 per Bitcoin.
However, those numbers only represent the company’s latest additions, not the total amount of Bitcoin it acquired. MicroStrategy said that, as of July 31, 2023, it had acquired 152,800 BTC for $4.53 billion or $29,672 per Bitcoin.
Despite those high estimates, the company said that the carrying value (the original cost of the asset, less any depreciation, amortization or impairment costs) of its Bitcoin was just $2.3 billion. That number reflects cumulative impairment losses of $2.196 billion since MicroStrategy’s first purchase and an average carrying amount per Bitcoin of $15,251.
MicroStrategy noted elsewhere that Bitcoin and its own MSTR stock have outperformed numerous other indexes and assets. MSTR has gained 254% since it adopted its Bitcoin strategy in August 2020, while Bitcoin itself has gained 145% since that date.
MicroStrategy otherwise reported total revenues of $120.4 million in Q2 2023, which represents a 1% decrease in revenue year-over-year.
Kang also positioned MicroStrategy’s purchases within broader industry developments, such as increasing interest from institutional investors and regulatory clarity around Bitcoin.
Kang also said that MicroStrategy is seeing progress regarding Bitcoin accounting practices. In May, the company submitted a letter to the Financial Accounting Standards Board (FASB) expressing support for a fair value accounting for crypto assets. It said this would allow it to provide a “more relevant view” of its Bitcoin holdings.
In its company profile, Microstrategy called Bitcoin a “dependable store of value” and described Bitcoin acquisition as one of its two main strategies alongside its enterprise software business.
UPDATE: Aug. 2, 2023, 9AM – MicroStrategy announced the sale of up to $750 million of its Class A stock on Aug. 1 potentially to fund additional Bitcoin purchases.
The post MicroStrategy made largest Bitcoin purchase since 2021 in Q2 2023 amid slight revenue decrease appeared first on CryptoSlate.
Bed Bath & Beyond’s stores might be disappearing, but the home-goods retailer will survive in online form, following Overstock.com Inc.’s deal announced Wednesday to acquire and revive the bankrupt chain’s website and loyalty program.
Overstock
OSTK,
on Wednesday said it had it had acquired Bed Bath & Beyond’s brand and intellectual property, in a deal that would reportedly meld both companies’ e-commerce platforms into one, under the name bedbathandbeyond.com. Overstock announced the deal a day after a bankruptcy judge approved the online furniture site’s $21.5 million bid to buy the assets.
Overstock said it would hold a conference call on Thursday to offer more details on the deal.
The deal will hand Bed Bath & Beyond’s website and domain names, customer database, loyalty program data, and trademarks and patents to Overstock. The deal does not include stores or inventory, or Buy Buy Baby, a baby-merchandise retailer that Bed Bath & Beyond bought in 2007.
Overstock said that within the next week, it will relaunch the Bed Bath & Beyond domain in Canada. And it said that “weeks later,” it would set up a new website, mobile app and loyalty program in the U.S.
The online furniture retailer said customers of both Overstock and Bed Bath & Beyond would be able to shop online at bedbathandbeyond.ca in Canada and bedbathandbeyond.com in the U.S.
The New York Times reported that beginning in August, shoppers in the U.S. who visit overstock.com would be routed instead to bedbathandbeyond.com. The Times reported that Overstock also planned to bring back Bed Bath & Beyond’s wedding registry, and was weighing whether to rename the combined business entirely — potentially going with Bed Bath & Beyond.
Overstock snapped up the assets after Bed Bath & Beyond filed for bankruptcy protection in April, following the chain’s struggles with cash burn, miscalculations on product mix and online competition. E-commerce demand over the past year has also slowed, after prices rose for basics and left customers with less flexibility to spend on things like home goods and electronics.
A separate auction for Buy Buy Baby had been set for Wednesday morning. But CNBC reported on Wednesday that Bed Bath & Beyond had split that process up into two parts — one for the baby-products chain’s intellectual property; the second for offers to keep its physical stores afloat, set possibly for Thursday.
Shares of Overstock were up 3.4% after hours. Over-the-counter trading of Bed Bath & Beyond
BBBYQ,
stock was quiet after hours, with shares up fractionally.
Overstock on Wednesday also said it would re-brand its Club O loyalty program as Welcome Rewards.
The company said that for the second quarter so far, sales were likely down in the “low-20% range” when compared to last year.
“The promotional and marketing environment has remained highly competitive due to the weak consumer sentiment within a challenging economic backdrop and changes in consumer spending preferences,” executives said.
