Tag: Public

NYDIG Expects to Hold $25 Billion In Bitcoin for Institutions by End of 2021

by Blockchain News

Ross Stevens, the founder and CEO of New York Digital Investment Group (NYDIG) has predicted that the firm could significantly increase the amount of Bitcoin it holds under management by the end of this year to $25 Billion in BTC. 

Stevens said that at the MicroStrategy’s World 2021 Conference event where he revealed that while currently the NYDIG has $6 billion in Bitcoin assets under management, the amount could reach $25 billion by the end of 2021 because the company already has adequate institutional buy orders lined up to push its holdings to such levels.

Stevens had a conversation with MicroStrategy CEO, Michael Saylor, during the conference where he said:

“I believe that the most important decision that CEOs will make in the next ten years will be deciding to allocate to Bitcoin.”

Stevens disclosed that NYDIG has seen all customers continuing to build up their initial investments to date. He said:

“My partners bought more Bitcoin in 2020 than in 2013-2019 combined. As our fiat businesses continue to inflate and accelerate, I expect we will buy more bitcoin in the next two years.[…]We are capital allocators. If we didn’t believe we would make money off this, we wouldn’t invest a penny.”

Currently, NYDIG manages $6 billion in Bitcoin for its 280 institutional customers, with more than 96 more on the waiting list. Steven said that the company can onboard at least 75 clients a month.

Bitcoin the Next Big Treasure

In the past, Bitcoin’s immature financial ecosystem, legal ambiguities, and extreme volatility made it inappropriate for anyone but speculators. However, since falling from its initial peak seen in December 2017, the cryptocurrency’s financial infrastructure has significantly matured. A recent price spike witnessed in 2020 has seen a return of the volatility that has attracted a rising number of investors.

The COVID-19 pandemic has made an enormous impact. The response by central banks and sovereign treasuries has been worrisome to investors. As more dollars are printed by the Federal Reserve, talks of additional stimulus being injected into the US economy is on the rise and the threat of inflation looms. This explains the reasons why major companies with cash reserves are doubtful about the long-term stability of the US dollar and looking to a hedge to build their wealth and protect their assets. This apparently explains the increasing trend of public companies adding Bitcoin to their balance sheet. MicroStrategy started the trend and followed by Square Inc.

Image source: Shutterstock

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Coinbase Will Go Public Via Direct Listing Not IPO

by Blockchain News

Coinbase, the largest crypto exchange in the US, has announced that it plans to list on the stock market through a direct listing instead of a traditional initial public offering (IPO).

In July last year, Coinbase filed its registration documents with the United States Securities and Exchange Commission (SEC), but did not specify that it would choose a direct listing instead of the traditional initial public offering processes.

The popularity of direct listings has been gradually rising, with several consumer-based technology firms such as Spotify Technology SA have used direct listings to go public. Therefore, it is not surprising to see that a firm like Coinbase opting to take this route to public markets.

Other several firms have chosen this path. For example, after delaying to observe its late-2020 IPO market and private capital funding, Roblox Corp online video game firm has also revealed its plans to go public via a direct listing.

With direct listings, firms can skip elements of the traditional initial public offering by removing the need to price and sell a block of new equity. Instead, a firm just lists its shares, which then become available for trading. However, not all firms have an adequate profile for such a method to prove attractive, and the direct listing firm loses its ability to raise new primary capital. The richest and best-known firms may find direct listing more attractive.

Why Crypto Exchanges Want to Go Public

One of the major reasons why crypto businesses seek to go for public listings is a change in circumstances in their markets. Coinbase’s announcement comes at a time when interest in cryptocurrencies has increased during the COVID-19 pandemic. Investors have found such digital assets attractive as the US dollar weakens. Bitcoin skyrocketed its value past $40,000 this year and currently trading at $33,000 per coin. Institutional and recently retail investors are credited to have driven the latest price surge. This implies that there is more liquidity in cryptocurrency markets compared to the bull run witnessed in 2017, therefore making them less susceptible to wild swings.

Macroeconomic instability, as well as the integration of cryptocurrencies into public and private ventures, have also led to the rise of Bitcoin price. Furthermore, the capabilities and infrastructures for cryptocurrency exchanges have advanced, thus making it possible for them to incorporate a wider variety of trades and customers. 

For cryptocurrency businesses such as Coinbase, such developments imply potentials for greater revenue generation. Coinbase, founded in 2012, has over 35 million customers in more than 100 nations trusting the exchange to use, buy, sell and earn cryptocurrencies. The firm has over $25 billion in assets on the crypto platform and over $320 billion in total volume traded.

Image source: https://finance.yahoo.com/news/cryptocurrency-exchange-coinbase-picks-direct-203908918.html

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here’s the team and link to their website: Would be good to see a ‘portfolio’ addition to their site, like @a16z do. This way the public can see which startups @nascentxyz team deem worthy for early investment. Crunchbase data yet to be updated.

by Brad Laurie
here’s the team and link to their website:
https://t.co/4zgZdSQMUR

Would be good to see a ‘portfolio’ addition to their site, like @a16z do. This way the public can see which startups @nascentxyz team deem worthy for early investment. Crunchbase data yet to be updated. https://t.co/9X83FWpcho

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Crypto Going Public in 2021—Three Crypto Giants Set to Take On Wall Street

by Blockchain News

With the effects of the COVID-19 pandemic economic meltdown further fueling the rise of Bitcoin and cryptocurrency as an investible asset class, three giants of the crypto industry have announced plans to go public in 2021 and take Wall Street by storm.

Crypto firms going public in 2021

The crypto industry is finally making the leap to mainstream investment on Wall Street. In 2020, major financial service and payments companies like JPMorgan, PayPal and Mastercard have been creating new avenues for public exposure to Bitcoin and crypto.

Major institutional investors and enterprises such as Microstrategy and MassMutual Insurance have also been allocating serious amounts of capital to Bitcoin and crypto, mainly as a hedge against the weakening dollar and impending inflation due to stimulus payments and unprecedented relief spending of governments around the world.

As cryptocurrency and Bitcoin surge into public and institutional consciousness, three large companies in the crypto space have announced or hinted that they are planning to launch an initial public offerings (IPO) to raise money on public markets.

As the United States Federal Reserve and central banks like the ECB continue to hold interest rates at record lows, the inflation narrative is gaining strength and going public in 2021 could be the tipping point for these crypto firms seeking public listing.

Ripple

In January this year, Ripple CEO Brad Garlinghouse predicted that initial public offerings (IPOs) will become more prevalent in the cryptocurrency and blockchain space in 2020.

While speaking at the World Economic Forum in Davos on, Jan. 23, Garlinghouse went as far as to hint that Ripple would itself be one of those firms to seek a public flotation. Garlinghouse said at the time:

“In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.”

Unless you have been living under a rock in the crypto-sphere, it goes without saying that Ripple’s plans are currently up in the air with the ongoing Securities and Exchange Commission (SEC) lawsuit against the sale of XRP tokens as unregistered securities.

Unclear regulation towards altcoins like XRP along with its current regulation battle would make it incredibly difficult at this point to gain public confidence for investment into a Ripple IPO.

Coinbase

The most well-publicized and likely planned IPO for 2021 comes from major United States crypto exchange Coinbase.

The long-anticipated Coinbase Initial Public Offering (IPO) was finally filed on Dec.18 and now awaits the review and approval of the Securities and Exchange Commission (SEC) before the filing will be made public.

Coinbase is looking to go public in the coming months and submitted a draft registration (S1) form to the Securities and Exchange Commission (SEC), which read:

“Coinbase Global, Inc. today announced that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”).

The Coinbase public offering is causing a stir in the markets and Coinbase (CBSE) pre-IPO contracts for the leading United States cryptocurrency exchange is currently trading at a projected valuation of nearly $70 billion dollars on FTX trading—a figure that is equal to three times the total value of the booming decentralized finance (DeFi) market and eclipses the entire marketcap of Ethereum.

Digital Currency Group

Digital Currency Group (DCG)—a conglomerate that owns Grayscale Investments, over-the-counter desk and lender Genesis Global and leading crypto news site Coindesk—is projected to launch its own IPO in 2021.

According to a report from Messari in November this year, a third party that might also soon throw their hat into the crypto firm IPO mix is Digital Currency Group.

While discussions over an IPO have not been raised publicly from DCG’s end, the report crunched down some numbers, which indicated that DCG would present a strong case for a successful IPO.

Owning firms like Grayscale Investments and Genesis Global, Digital Currency Group has built up not only an extremely profitable business but also a good reputation amongst institutional players. This reputation could make an easy sell to raise capital for an IPO in the public markets—but DCG is already a giant and may not even need public funding to succeed.

Messari projects that DCG could be worth over $4 billion should they go public in 2021.

Image source: Shutterstock

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I would buy XLM here. It’s down by association to XRP but the legal fundamentals are different. XLM didn’t dump billions of tokens on the public to fund a company. They are decentralized, run by a foundation, raised minimal capital etc etc.

by Ran Neuner
I would buy XLM here. It’s down by association to XRP but the legal fundamentals are different. XLM didn’t dump billions of tokens on the public to fund a company. They are decentralized, run by a foundation, raised minimal capital etc etc. https://t.co/g8pNydE3Oz

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@rolfvb Bitcoin IPO-ed at the start of that yellow line, it was open for the public to buy from that very first day when the first market went live. You could say even the pre-IPO was available to the public, you just needed to download the and software run it, paying in electricity.

by Willy Woo
@rolfvb Bitcoin IPO-ed at the start of that yellow line, it was open for the public to buy from that very first day when the first market went live. You could say even the pre-IPO was available to the public, you just needed to download the and software run it, paying in electricity.

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CNBC’s @jimcramer thanked @larry_kudlow for his service. If Kudlow actually gave @realDonaldTrump any good economic advice he didn’t do so in public, and if he did it was ignored. Kudlow has lost any credibility he once had when it comes to his advocacy of free market capitalism.

by Peter Schiff
CNBC’s @jimcramer thanked @larry_kudlow for his service. If Kudlow actually gave @realDonaldTrump any good economic advice he didn’t do so in public, and if he did it was ignored. Kudlow has lost any credibility he once had when it comes to his advocacy of free market capitalism.

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