Crypto Biz: MicroStrategy doubles down on Bitcoin, Ether ETFs delayed, and more

Bitcoin’s bull market is currently in full swing thanks to flows from exchange-traded funds (ETFs) and market anticipation of the next halving. During February, BTC’s price jumped 45%, breaking $60,000 for the first time since the fourth quarter of 2021.

Taking advantage of the market trend, MicroStrategy has doubled down on Bitcoin (BTC). The company is set to issue convertible notes — a short-term debt that can be converted into equity in the future — to add more coins to its 193,000 BTC holdings.

Meanwhile, asset manager BlackRock filed an amendment with the United States Securities and Exchange Commission (SEC) to incorporate Bitcoin exposure in its Strategic Income Opportunities Fund (BSIIX). The fund currently has $36.5 billion in assets under management, according to BlackRock.

Another interesting perspective on current market dynamics can be gained by looking at Bitcoin miner reserves in February. At the end of the month, miner reserves remained stable at around 1.82 million BTC, indicating a slower sales pace than in January, with the halving event around the corner.

“I think that we’re in the Bitcoin gold rush era. It started in January of 2024 and will run until about November of 2034,” MicroStrategy co-founder and executive chairman Michael Saylor recently said at a Bitcoin event.

In this week’s Crypto Biz, we cover MicroStrategy’s debt issuance to buy Bitcoin, the SEC’s delay on Ether (ETH) ETFs, Fantom’s request for Multichain’s liquidation and more.

MicroStrategy set to raise $600 million via convertible notes to buy more Bitcoin

MicroStrategy is set to raise $600 million as part of a move to buy more Bitcoin. The company is considered the cryptocurrency’s largest corporate holder. The funds will be raised in the form of senior convertible notes maturing in March 2030 unless earlier repurchased, redeemed or converted in accordance with their terms. MicroStrategy said it “intends to use” the net proceeds from the sale to buy more Bitcoin for general corporate purposes. The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock. The firm currently holds 193,000 BTC, according to BitcoinTreasuries.

SEC pushes back BlackRock, Fidelity spot Ethereum ETF proposals

The U.S. SEC has delayed its decision to approve or reject BlackRock and Fidelity’s spot Ether ETFs. The regulator first delayed its decision on the crypto ETF applications in January, shortly after it approved a roster of spot Bitcoin ETFs to go live. The SEC can delay its decision up to three times. The delay hasn’t come as a surprise, with market commentators and ETF analysts long speculating the SEC would decide on the ETFs once the first final deadline arrives in May. 

Fantom seeks Multichain liquidation in attempt to recover $122 million from exploit

Smart contract platform Fantom wants the Singapore High Court to declare the Multichain Foundation bankrupt, which it says could open an avenue for it to recover the $122 million that was stolen from Multichain’s Fantom bridge last year. According to Fantom, Singapore’s High Court granted it a default judgment ruling for Multichain’s “breach of contract and fraudulent misrepresentations.” The court will assess the damages and demand repayment from Multichain. However, Fantom is also seeking an appointment of a liquidator, similar to a Chapter 7 bankruptcy in the United States. If approved, the liquidator would — among other powers — have the authority to take over the Multichain Foundation’s assets, claw back transactions and recover other assets with the aim of paying back creditors it allegedly owes.

Seamless Protocol introduces Integrated Liquidity Market on Lido

Seamless Protocol is launching an Integrated Liquidity Market (ILM) on Lido for wrapped staked Ethereum (wstETH), offering borrowing strategies for tokenholders seeking an alternative to traditional restaking. According to Seamless, the ILM will enable stakers on Lido to automatically use a borrowing strategy and compound positions on wstETH, meaning that it automatically reinvests the returns from staked ETH to potentially increase the users’ rewards. Seamless borrowing strategies target single-purpose loans, where the lender knows where the liquidity is being used, and the borrower cannot use it for anything else.

Before you go: A growing number of traders have complained of funds being deducted from their MEXC exchange accounts, but the exchange argues that such complaints are misinformation.

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