MicroStrategy Acquires $1.11 Billion in Bitcoin, Largest Purchase Since 2021
MicroStrategy Inc., an enterprise software company, has purchased 18,300 Bitcoin for $1.11 billion, its largest acquisition of the digital asset in over three years. The tokens were bought between August 6 and September 12, 2024, as disclosed in a recent SEC filing. With this purchase, MicroStrategy now holds approximately 244,800 Bitcoin, valued at $14 billion, equivalent to about 1% of all Bitcoin in circulation.
The company began acquiring Bitcoin in 2020 as part of a capital allocation strategy to hedge against inflation, led by co-founder Michael Saylor. The latest acquisition was financed through the sale of common shares, and the firm recently conducted a 10-for-1 stock split to make shares more accessible. Despite the volatility of Bitcoin, MicroStrategy’s stock has more than doubled this year, surpassing Bitcoin’s 40% price increase during the same period.
Trump to Launch Cryptocurrency Platform “World Liberty Financial” Amid Election Campaign
Former President Donald Trump has announced the launch of his cryptocurrency project, World Liberty Financial, set for September 16. The platform, overseen by his sons Donald Jr. and Eric Trump, aims to bypass traditional banking by offering decentralized finance (DeFi) services such as digital wallets, credit systems, and borrowing/lending mechanisms.
Despite excitement in the crypto community, the timing has raised concerns, as the launch comes just 50 days before the presidential election. Critics, including Trump supporter Nic Carter, fear it could harm Trump’s relationships within the crypto industry. The project also faces security issues, with scams and hacks targeting individuals linked to it.
Bernstein Report: Gen Z’s Shift to Crypto Set to Benefit Robinhood and Shape Future Finance
A Bernstein Research report reveals a growing generational preference for cryptocurrencies among young investors, with 55% of U.S. Gen Z traders showing a strong interest in crypto investments. The report suggests this trend will significantly benefit U.S. brokerage Robinhood, which has a large user base under the age of 43. Robinhood’s recent acquisition of the crypto exchange Bitstamp positions it to expand crypto services like staking and derivatives.
Younger generations, disillusioned with traditional banking, favor decentralized finance (DeFi) and blockchain, finding digital banking platforms outdated and inefficient. This shift is further evidenced by the rising use of stablecoins, with over 27 million active wallets and $160 billion in stablecoins currently in circulation. As Millennials and Gen Z accumulate wealth, their financial preferences will shape the future of banking and investment platforms, according to the report.
Bitcoin’s Future Price and Market Dominance: Experts Weigh Prospects for Growth
A recent discussion centered on Bitcoin’s price trajectory and market dominance explored whether the cryptocurrency could reach new highs by year-end or fall below $40,000. Gary Cardone of Cardone Digital Ventures expressed confidence that Bitcoin’s low is behind us, pointing to its bounce from $49,000 and rapid growth over the past year. He emphasized the role of influential players like Cantor Fitzgerald’s Howard Lutnick and Fidelity in boosting Bitcoin’s growth, stating their involvement could “supercharge” the industry.
Cardone downplayed concerns of Bitcoin falling to $40,000, and when asked if Bitcoin could hit $1 million in five years, he outlined that reaching $100,000 would bring its market cap to $2.1 trillion, a significant but achievable milestone. He predicted that once Bitcoin breaks its previous all-time high, its market dominance could rise to the high seventies, calling it an “extremely positive” sign for the cryptocurrency.
eToro Settles with SEC, Restricts U.S. Crypto Trading After $1.5 Million Penalty
Israeli trading platform eToro has reached a $1.5 million settlement with the U.S. Securities and Exchange Commission (SEC) over claims that it operated as an unregistered broker and clearing agency, selling crypto in violation of U.S. securities laws since 2020. While not admitting guilt, eToro agreed to limit U.S. customers’ access to most crypto assets and liquidate any crypto sold as securities that cannot be transferred to users.
The SEC commended eToro for coming into compliance by removing certain tokens from its platform, enhancing investor protection. Despite restrictions, U.S. users can still trade Bitcoin, Bitcoin Cash, and Ether. eToro’s CEO, Yoni Assia, emphasized the importance of regulatory compliance, expressing optimism for a future U.S. crypto framework similar to those in the U.K. and Europe. The platform currently serves over 35 million users in 100+ countries.
UK Introduces Landmark Bill to Recognize Digital Assets as Personal Property
The UK government has introduced a groundbreaking bill that will legally recognize digital assets, including cryptocurrencies, NFTs, digital files, and digital carbon credits, as personal property. This move aims to provide legal clarity and protection for digital asset holders, solidifying the UK’s position as a leader in the global digital finance sector.
Justice Minister Heidi Alexander highlighted the need for laws to keep pace with technological advancements, ensuring the UK’s legal services remain globally competitive. The bill, the first of its kind in British history, will offer clearer legal recourse in cases of fraud or disputes, bringing digital assets out of the legal grey area they previously occupied. The legislation has broad support within the crypto industry and sets a global precedent for how digital assets are treated in legal frameworks.
India Leads Global Crypto Adoption for Second Year Despite Regulatory Challenges
India has maintained its position as the global leader in cryptocurrency adoption for the second consecutive year, according to a Chainalysis report. Despite strict regulations and high trading taxes, Indian investors continue to engage heavily in both centralized and decentralized finance from June 2023 to July 2024. The Financial Intelligence Unit (FIU) has taken a tough stance, issuing penalties to several offshore exchanges for non-compliance, but some restrictions have begun to ease, with Binance resuming operations after paying fines.
India’s wide-ranging crypto adoption suggests that new participants are entering the market despite ongoing regulatory hurdles. Other countries in central and South Asia, including Indonesia, Vietnam, and the Philippines, also ranked high in adoption, with significant trading volume seen in countries with lower purchasing power. Indonesia alone recorded $157.1 billion in digital asset trades despite banning cryptocurrencies as a form of payment but allowing investments.
MicroStrategy CEO Predicts Bitcoin Could Reach $13 Million in 21 Years
MicroStrategy CEO Michael Saylor’s bold prediction that Bitcoin could reach $13 million within 21 years sparked a lively discussion on The Wolf of All Streets podcast, hosted by Scott Melker and featuring George Tung of CryptosRus. Tung explained the significance of the 21-year time frame, noting it aligns with Bitcoin’s 21 million total supply and its four-year price cycles. Both hosts found some logic in Saylor’s projection, as Bitcoin could represent a larger share of global capital over time. While excited about Bitcoin’s potential, they also emphasized the importance of breaking key price milestones like $100,000 before reaching such lofty targets.
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