JPMorgan to Acquire First Republic Bank Assets

JPMorgan Chase is poised to acquire the assets of First Republic Bank (FRB), after regulators closed the bank on May 1. JPMorgan and several other banks had submitted bids to acquire the troubled bank’s assets after early efforts to rescue it failed.

As part of the purchase and assumption agreement with the FDIC, JPMorgan will take on all of FRB’s assets, including uninsured deposits. With $229.1 billion in assets and $103.9 billion in deposits, FRB was a significant acquisition for JPMorgan.

In addition to acquiring the bank’s assets, JPMorgan also entered into a loss-sharing agreement with the FDIC for residential and commercial loans acquired by FRB. Under the agreement, any losses and recoveries on the loans covered by the loss-share agreement will be shared between the FDIC and JPMorgan.

All depositors of FRB will become part of JPMorgan and will have access to their total deposits insured by the FDIC. The 84 locations of FRB in eight states will reopen as JPMorgan Chase, allowing customers to continue banking services at the current branch until they receive any change notification from JPMorgan.

The trouble began for FRB on April 26 when news of a government receivership surfaced. The bank’s shares dropped 20% in just a few hours following the announcement. The days following the announcement were even more volatile for the bank before regulators eventually closed the bank.

With FRB’s closure, it becomes the latest US bank to collapse in 2023, joining Silicon Valley Bank and Signature Bank.

This acquisition is a significant move for JPMorgan, as it expands its reach and strengthens its presence in the banking industry. JPMorgan has a history of making large-scale acquisitions, and this acquisition of FRB’s assets follows a pattern of growth through strategic acquisitions.

First Republic Bank had a reputation as a premier private bank for high-net-worth individuals and businesses. However, the bank had been struggling for some time due to a high level of non-performing loans and other financial difficulties. Despite efforts to rescue the bank, regulators determined that the best course of action was to close it and transfer its assets to another institution.

The loss-sharing agreement between JPMorgan and the FDIC is designed to mitigate any potential losses and ensure that depositors are protected. This agreement is a standard part of any acquisition involving a failed bank, and it ensures that the FDIC is able to recover as much of its costs as possible.

Overall, JPMorgan’s acquisition of First Republic Bank’s assets is a significant development in the banking industry. As JPMorgan continues to grow and expand its reach, this acquisition demonstrates its commitment to providing excellent banking services and support to customers across the United States.

Source

Tagged : / / / / /

MicroStrategy Acquires Additional 1,045 Bitcoin

The American business intelligence company MicroStrategy has officially made public its most recent purchase, which consisted of an extra 1,045 Bitcoin (BTC) and cost around $29.3 million. On April 5, 2023, Michael Saylor, the executive chairman of MicroStrategy, put out a tweet notifying the followers of the firm of this specific piece of information.

As a result of this most recent purchase, MicroStrategy now holds a total of 140,000 Bitcoins, raising the total number of Bitcoins that the business possesses to a total of 240,000. At the time that these Bitcoins were bought, the price per Bitcoin averaged out to be $29,803, which resulted in an acquisition cost of around $4.17 billion. The constant investment in bitcoin as a reserve asset that MicroStrategy makes as part of its business strategy has enabled the firm to reach a major new benchmark. This reflects the company’s faith in Bitcoin and indicates the company’s excitement on the possibilities of the cryptocurrency over the longer term.

Given that MicroStrategy made its first buy of Bitcoin in August 2020 and has been continuously adding to its holdings ever since, one possible Bitcoin strategy that the company implements is dollar-cost averaging. This is due to the fact that MicroStrategy made its first purchase of Bitcoin in August 2020. The most recent purchase was made not long after the firm redeemed the money it had gotten from Silvergate. Around the end of March, the company also bought an additional 6,500 BTC. Recent events have seen both of these trades take place.

The decision made by MicroStrategy to invest in Bitcoin was unquestionably successful, as shown by the fact that the entire value of the company’s assets has now surpassed $12.6 billion. This implies that the organization took a strategic decision that was beneficial to its business. This larger trend is seeing a growing number of financial institutions adopt a strategy that is defined as “investing in cryptocurrency as a hedge against inflation and a store of value.” One example of this movement is the company’s attitude to Bitcoin, which is representative of this larger trend.

The fact that MicroStrategy continues to invest in Bitcoin demonstrates a high level of confidence in the potential that the cryptocurrency has in the long term, despite the fact that a number of Bitcoin skeptics have expressed worries about the cryptocurrency’s volatility. It is going to be quite exciting to see how the market for cryptocurrencies develops over the next several years because it is going to be extremely intriguing. MicroStrategy has set a precedent, and it is quite probable that other corporations would invest in Bitcoin in a similar manner to what it has done.

Source

Tagged : / / / / /

First Citizens Bank to Acquire Silicon Valley Bank Deposits and Loans

First Citizens Bank, a North Carolina-based bank, is set to acquire Silicon Valley Bank’s deposits and loans following the latter’s collapse in March 2023. The Federal Deposit and Insurance Corporation (FDIC) approved the purchase and assumption agreement, which includes the acquisition of $72 billion of Silicon Valley Bridge Bank, National Association’s assets at a discount of $16.5 billion. The agreement also stipulates that 17 former branches of Silicon Valley Bank will operate as First Citizens Bank and Trust Company starting on March 27.

As part of the agreement, all Silicon Valley Bank depositors will automatically become depositors of First Citizens Bank. The FDIC will keep approximately $90 billion in securities and other assets in receivership for disposition. In addition, the FDIC will receive equity appreciation rights in First Citizens BancShares, Inc. common stock worth up to $500 million.

First Citizens Bank is now the 30th largest commercial bank in the US, with $167 billion in total assets and $119 billion in deposits as of March 10. The acquisition of Silicon Valley Bank’s deposits and loans is expected to boost the bank’s assets and expand its operations in California’s tech hub.

Silicon Valley Bank collapsed on March 10 after rumors of a severe liquidity crisis sparked a bank run. The FDIC was then appointed as the receiver of the failed bank and attempted to auction off the fallen bank’s assets. The process included two separate auctions for Silicon Valley Bank’s assets: one for its traditional deposits unit and the other for its private bank, which catered to high-net-worth individuals and was housed within its retail operations.

Several firms were reportedly planning or had submitted bids for Silicon Valley Bank. First Citizens Bank was one of them, with reports suggesting it had been planning a bid as early as March 18. Three days later, the bank reportedly submitted a bid for all of Silicon Valley Bank. A First Citizens spokesperson declined to comment on “market rumors or speculation” at the time. Valley National Bancorp was also understood to have submitted a bid for the collapsed bank.

Meanwhile, Citizens Financial Group, another US regional bank, was reportedly preparing to submit an offer for Silicon Valley Bank’s private banking arm. The bank’s collapse highlights the challenges faced by banks in the tech industry and the importance of maintaining adequate liquidity. The acquisition by First Citizens Bank underscores the bank’s confidence in the US banking system and its ability to weather crises.

Source

Tagged : / / / / /

HSBC approves multi-million-pound bonuses for Silicon Valley Bank UK staff

On March 10, the activities of Silicon Valley Bank UK were terminated by order of the Bank of England (BoE), which said that the bank did not provide any “critical services” in support of the financial system. Once this event occurred, HSBC purchased the bank for the very cheap price of one pound. But, just a few days following the purchase, HSBC gave its approval for bonuses of several millions of pounds to be given to workers and top executives of Silicon Valley Bank UK.

It was emphasized by the sources that the bonuses would not have been paid out if Silicon Valley Bank UK had not been purchased in a financially sound manner. The exact amounts of the bonuses that were given to Erin Platts, CEO of Silicon Valley Bank UK, and her senior colleagues are unknown at this time; however, insiders have emphasized that the payments were a signal of HSBC’s confidence in the talent base at Silicon Valley Bank UK as well as an effort to retain key staff.

As a result of the BoE’s announcement that it intends to place Silicon Valley Bank UK into a “bank insolvency procedure,” the bank was required to cease making payments and accepting deposits. Prior to this, Silicon Valley Bank UK was instrumental in the growth and support of the innovative economy in the UK. In the meanwhile, the United States banking arm of Silicon Valley Bank has been taken over by the government. In the meantime, Silicon Valley Bank’s parent company, SVB Financial Group, has filed for protection under Chapter 11 bankruptcy while it searches for purchasers for its other assets.

SVB Group’s chief restructuring officer William Kosturos stated that the Chapter 11 process will allow the group to “preserve value” as it evaluates strategic alternatives for its prized businesses and assets. Kosturos stated that the group will be able to “preserve value” if it goes through with the process. Notwithstanding this, both SVB Capital and SVB Securities will continue to do business as usual, both under the direction of their own separate teams.

Source

Tagged : / / / / /

Binance Confirms Equity Investment in Musk’s Acquisition, Dogecoin Stimulated over the Deal

Dogecoin has been trading up 35% since Monday following the news about Elon Musk has completed the deal to acquire Twitter’s social media giant. Doge soared its price by 10% up after the Tesla chief executive changed his Twitter bio to read “Chief of Twit” on Wednesday.

After a month of long battle between Musk and Twitter over the sale, Musk closed the deal on Friday. According to the CNBC report, Tesla CEO Elon Musk is now in charge of the social media and online news platform Twitter in a $44 billion deal. 

Musk also decided to lay off the major executives, including CEO Parag Agrawal and CFO Ned Segal. Based on the announcement, Twitter’s CEO Parag Agarwal and Chief Financial Officer Ned Segal have left the company’s headquarters in San Francisco. CNBC reporter David Faber shared a tweet that the executives “will not be returning.”

Musk expressed his excitement about closing Twitter’s deal on Thursday – he disclosed the reason for acquiring the social networking platform in a tweet: “Did it [bought Twitter] to try to help humanity, whom I love. And I do so with humility, recognizing that failure in pursuing this goal, despite our best efforts, is a very real possibility.”

Faber expects more changes are likely within Twitter as he believes that Musk will lay off some of the company’s employees, as that number could be up to “three-quarters of the staff.”

Meanwhile, Binance confirmed that the crypto exchange has invested in Musk’s Twitter deal, Bloomberg reported.

“We aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology,” Binance said in a statement, citing Changpeng “CZ” Zhao, its billionaire co-founder.

The report citing a Binance spokesperson, said Friday “our initial commitment remains the same”, and flagged the possibility of growing the partnership.

In May, Binance said it had committed $500 million for the takeover as part of its strategy to bring social media and news sites into the world of web3. After one month, the crypto exchange has announced to raise $500 million crypto funds to enhance blockchain & Web3 adoption.

Crypto market is also stimulate by Musk’s deal. Dogecoin has been in a steady decline for several months, trading low on the market. But that changed on Monday this week when the value of the meme coin suddenly turned up, recovering 25% on the week and surging 16% on Wednesday.  The price of doge has risen by 35% since the beginning of this week. At the time of writing, the price is down by 2.64% and now trading at $0.0745, according to CoinMarketCap.

Source: TradingView

Doge’s surge is far from a normal revival – it is linked to Elon Musk’s takeover of Twitter, as the deadline for his purchase of the company approaches on Friday.

Musk has been the most visible and vocal supporter of the meme cryptocurrency, often influencing its price with his tweets and even endorsed it as a payment option on his Tesla merchandise store.

Image source: Shutterstock

Source

Tagged : / / / / /

Binance Confirms Equity Investment in Musk’s Acquisition, Dogecoin Stimulated over the Deal

Dogecoin has been trading up 35% since Monday following the news about Elon Musk has completed the deal to acquire Twitter’s social media giant. Doge soared its price by 10% up after the Tesla chief executive changed his Twitter bio to read “Chief of Twit” on Wednesday.

According to the CNBC report, Tesla CEO Elon Musk is now in charge of the social media and online news platform Twitter in a $44 billion deal. 

After a month of long battle between Musk and Twitter over the sale, Musk closed the deal on Friday. 

Musk also decided to lay off the major executives, including CEO Parag Agrawal and CFO Ned Segal. Based on the announcement, Twitter’s CEO Parag Agarwal and Chief Financial Officer Ned Segal have left the company’s headquarters in San Francisco. CNBC reporter David Faber shared a tweet that the executives “will not be returning.”

Musk expressed his excitement about closing Twitter’s deal on Thursday – he disclosed the reason for acquiring the social networking platform in a tweet: “Did it [bought Twitter] to try to help humanity, whom I love. And I do so with humility, recognizing that failure in pursuing this goal, despite our best efforts, is a very real possibility.”

Faber expects more changes are likely within Twitter as he believes that Musk will lay off some of the company’s employees, as that number could be up to “three-quarters of the staff.”

Meanwhile, Binance confirmed that the crypto exchange has invested in Musk’s Twitter deal, Bloomberg reported.

“We aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology,” Binance said in a statement, citing Changpeng “CZ” Zhao, its billionaire co-founder.

The report citing a Binance spokesperson, said Friday “our initial commitment remains the same”, and flagged the possibility of growing the partnership.

In May, Binance said it had committed $500 million for the takeover as part of its strategy to bring social media and news sites into the world of web3. After one month, the crypto exchange has announced to raise $500 million crypto funds to enhance blockchain & Web3 adoption.

Crypto market is also stimulate by Musk’s deal. Dogecoin has been in a steady decline for several months, trading low on the market. But that changed on Monday this week when the value of the meme coin suddenly turned up, recovering 25% on the week and surging 16% on Wednesday.  The price of doge has risen by 35% since the beginning of this week. At the time of writing, the price is down by 2.64% and now trading at $0.0745, according to CoinMarketCap.

Source: TradingView

Doge’s surge is far from a normal revival – it is linked to Elon Musk’s takeover of Twitter, as the deadline for his purchase of the company approaches on Friday.

Musk has been the most visible and vocal supporter of the meme cryptocurrency, often influencing its price with his tweets and even endorsed it as a payment option on his Tesla merchandise store.

Image source: Shutterstock

Source

Tagged : / / / / /

Dogecoin Surges 35% after Elon Musk Finally Closes Twitter Acquisition Deal

Dogecoin has been trading up 35% since Monday following the news about Elon Musk has completed the deal to acquire Twitter social media giant. Doge soared its price 10% up after the Tesla chief executive changed his Twitter bio to read “Chief of Twit” on Wednesday.

According to the CNBC report, Tesla CEO Elon Musk is now in charge of the social media and online news platform Twitter in a $44 billion deal. 

After a month of long battle between Musk and Twitter over the sale, Musk closed the deal on Friday. 

Musk also decided to lay off the major executives, including CEO Parag Agrawal and CFO Ned Segal. Based on the announcement, Twitter’s CEO Parag Agarwal and Chief Financial Officer Ned Segal have left the company’s headquarters in San Francisco. CNBC reporter David Faber shared a tweet that the executives “will not be returning.”

Musk expressed his excitement about closing Twitter’s deal on Thursday – he disclosed the reason for acquiring the social networking platform in a tweet: “Did it [bought Twitter] to try to help humanity, whom I love. And I do so with humility, recognizing that failure in pursuing this goal, despite our best efforts, is a very real possibility.”

Faber expects more changes are likely within Twitter as he believes that Musk will lay off some of the company’s employees, as that number could be up to “three-quarters of the staff.”

In terms of crypto, Dogecoin has been in a steady decline for several months, trading low on the market. But that changed on Monday this week when the value of the meme coin suddenly turned up, recovering 25% on the week and surging 16% on Wednesday.  The price of doge has risen by 35% since the beginning of this week. At the time of writing, the price is down by 2.64% and now trading at $0.0745, according to CoinMarketCap.

Source: TradingView

Doge’s surge is far from a normal revival – it is linked to Elon Musk’s takeover of Twitter, as the deadline for his purchase of the company approaches on Friday.

Musk has been the most visible and vocal supporter of the meme cryptocurrency, often influencing its price with his tweets and even endorsed it as a payment option on his Tesla merchandise store.

Image source: Shutterstock

Source

Tagged : / / / / /

TRON’s Founder Justin Sun Could be Real Acquirer of Huobi Global: Sources

Justin Sun, founder of Tron, could be the real buyer behind the deal for the acquisition of Huobi Global, according to sources with the matter.

justin sun.jpeg

The information was first disclosed by a Chinese online media outlet of @wublockchain12 on Monday, Oct 10, citing multiple sources with the matter and claiming that Sun is the real investor by offering $1 billion behind the deal.

Yet, no parties confirmed or denied the acquisition at the time of writing.

Justin Sun tweeted on Monday, confirming that he has joined and been appointed as one of the advisors of Huobi Global.”:

“I am very honoured to be appointed as a member of the Global Advisory Board of @HuobiGlobal and work with industry, academic, and policy leaders to help guide and grow this innovative, vibrant, and resilient organization in its latest chapter of global expansion.”

Meanwhile, Sun also added the link Huobi on his cover page Twitter in English-version account.

Among advisors, Ted Chen, CEO of About Capital; Du Jun, co-founder of Huobi Global; Wang Yang, Vice President of the Hong Kong University of Science and Technology, and Leah Wald, CEO of Valkyrie Investments, also joined the advisory board, per the announcement of Huobi Global.

The rumour came after Huobi Global’s transaction announced last Friday that the crypto exchange “has completed the transaction to sell its entire shareholding in Huobi Global to the buyout vehicle managed by a Hong Kong-based About Capital Management (HK) Co., Limited (“About Capital”).” Per the statement, the buyout vehicle of About Capital will control the majority stake in Huobi Global upon completion of the transaction.

With the latest development, About Capital’s move was described as merely “a bridge” for Justin Sun’s acquisition.

Huobi was trading up to $4.4739 at 2:20 pm HKT, up over 5% during the intraday, according to CoinMarkCap.

Image source: Twitter, Shutterstock

Source

Tagged : / / / / /

Huobi To Be Acquired by Hong Kong-Based VC Firm About Capital

Huobi Global announced on Friday that it has agreed to be bought by Hong Kong-based investment company About Capital Management’s M&A fund.

Leon Li Lin, the Chinese founder of Seychelles-based cryptocurrency exchange Huobi Global, is selling his majority stake to the Hong Kong investment firm according to Huobi’s announcement.

As per the report, both parties have reached an agreement, which will have “no impact on Huobi’s core operation and business management teams.” However, the parties did not disclose the financial terms of the deal.

Under new ownership, Houbi is planning to embrace international business expansion initiatives, including the injection of sufficient capital into the margin and risk provision funds, a global strategic advisory board led by prominent industry figures, as well as efforts to enhance business competitiveness.

In a statement, Li, who founded Huobi in China in 2013, said:

“Following Huobi’s exit from the Chinese mainland market in 2021, we have accelerated our globalization push amidst a challenging market environment. We believe the successful acquisition by About Capital vehicle will contribute to Huobi’s global expansion.”

The deal comes after months of reports and rumors that founder Leon Li was looking for a buyer for his nearly 60% stake in Huobi, and was asking for at least $1 billion.

In August, rumors emerged that FTX founder and CEO Sam Bankman-Fried would buy the exchange. But later, Bankman-Fried clarified on Twitter that FTX was not planning to acquire the company.

The Seychelles-based Huobi was China’s largest crypto exchange before the nation banned cryptocurrencies last year. Despite suffering a significant blow to its revenues following the ban, the exchange has remained one of the major platforms in the industry.

According to sources, a major reason behind Leon’s exit from the firm is due to his reluctance to leave China and his unsustainable business in 2022.

Due to the recent plunge in the crypto market, several exchange platforms immediately cut down expenses to survive the winter. Huobi is one of the exchanges that witnessed difficulties. In June, many crypto firms laid off up to 25% of their staff, and several filed for bankruptcy protection.

Image source: Shutterstock

Source

Tagged : / / /

Crypto Firm BitGo Files $100m Lawsuit against Galaxy Digital for Breaching Acquisition Deal

BitGo has filed a lawsuit against crypto financial services firm Galaxy Digital.

The California-based institutional digital asset financial services company is seeking more than $100 million in damages as it claims that Galaxy Digital intentionally breached the companies’ proposed $1.2 billion merger agreement announced in May last year.

On May 5 2021, Galaxy announced plans to acquire custodian provider BitGo for $1.2 billion in cash and stock.

However, last month on August 15, Galaxy terminated its deal to acquire BitGo, something that did not go with the other party. BitGo immediately responded, saying it would seek $100 million in damages following the termination of its merger with Galaxy Digital.

In a tweet yesterday, BitGo announced: “Late yesterday, BitGo filed a lawsuit against Galaxy Digital seeking damages of more than $100 million arising from Galaxy’s improper repudiation and intentional breach of its merger agreement with BitGo.”

The crypto custody firm further said that the complaint was filed in Delaware Chancery Court and will be made available to the public on Thursday, September 15.

In a statement, BitGo disclosed its intention to sue Galaxy, describing the termination of the deal as “absurd.”

What Caused the Failed Merger Deal?

On August 15, Galaxy Digital announced that the firm terminated a proposed $1.2 billion stock and cash deal that would allow the crypto company to acquire the digital asset custody business and financial services provider BitGo. Galaxy detailed that the abandoned deal was due to BitGo’s “failure to deliver” specific financial documents.

Galaxy said it exercised its right to terminate its previously announced acquisition deal with BitGo, following BitGo’s failure to deliver by July 31 audited financial statements for 2021 that comply with the requirements of the proposed agreement. Galaxy further stated: “No termination fee is payable in connection with the termination.”

The news of the failed merger came only a week after Galaxy reported a second-quarter net loss of $554.7 million following a plunge in the value of cryptocurrencies.

The financial losses followed Galaxy’s exposure to the collapse of TerraUSD algorithmic stablecoin in mid-May.

The collapse of the Terra blockchain ecosystem hit confidence in cryptocurrencies. Several crypto lending firms such as Celsius Networks, Voyager Digital, Vauld, Zipmex, Babel Finance, among others, were forced to stop customer withdrawals, and many became bankrupt.

Image source: Shutterstock

Source

Tagged : / / / / /
Bitcoin (BTC) $ 27,028.24 0.64%
Ethereum (ETH) $ 1,890.15 0.84%
Litecoin (LTC) $ 95.18 0.46%
Bitcoin Cash (BCH) $ 114.47 0.11%