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Crypto News Institutions

MicroStrategy Buys Another $15 Million in Bitcoin “Buying the dip”

It looks like MicroStrategy just bought the Bitcoin dip after Tesla announced it would stop accepting it as payment, citing “environmental concerns”.

Michael Saylor, CEO, confirmed the US$ 15 million purchase via Twitter. MicroStrategy now owns a total of 91,850 Bitcoins for roughly 2.241 billion at an average price of US$ 24,403 per Bitcoin.

MicroStrategy Ignores Tesla’s Bitcoin Criticism

Tesla took a toll on Bitcoin after it announced the company wouldn’t accept Bitcoin payments due to environmental problems, and it was looking into more “environmental friendly” cryptocurrencies, like Dogecoin.

It appears the announcement sparked a heated debate where not only Saylor but influencers like Anthony Pompliano discussed Bitcoin’s energy consumption.

Not only BTC plunged after the announcement, but the entire crypto market shed billions. The whole crypto market dipped below US$ 2 trillion, and most currencies saw price drops between 5-30%. However, Most proof-of-stake (PoS) cryptocurrencies saw a surge in price after Tesla backtracked on Bitcoin.

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Bitcoin Crypto News Institutions

Bitcoin’s Daily Volume Surpasses Mastercard

During this year Bitcoin (BTC) has slowly been creeping closer to the transaction volume that Mastercard has been posting on an average day. In the last month Bitcoin has reached the Mastercard transaction volume average nine times.

It’s impossible to know how far Bitcoin adoption will go. If Bitcoins were accepted as widely as Visa or Mastercard, it could lead to increased use of the network.

At the moment Bitcoin does not process close to as many transactions per day as Mastercard, yet they have reached the same volume multiple times. This means that Bitcoin transactions are larger but fewer whereas Mastercard processes many smaller transactions. If Bitcoin were to process as many transactions as Mastercard their volume would likely be considerably higher.

The Problem of Scaling

One of the issues with Bitcoin at the moment in is that the network only processes about 5 transactions per second (tps) and currently has a physical limit of 7 tps, due to the size-cap of the blocks transactions are stored on. Mastercard can process a whopping 5000 tps.

Bitcoin Transactions Per Second: Blockchain.com

There are various technical reasons as well as policy reasons why Bitcoin can only process so few transactions compared to companies like Mastercard and Visa. It doesn’t look like Bitcoin isn’t trying to become a new Mastercard or Visa. However, Bitcoin SV (BSV) could make it, as BSV’s test network hit a new record of processing over 9000 transactions per second earlier in the year.

Lightning network is also a solution that aims to solve the problem of scalability for Bitcoin, through creating a second layer that only handles small transactions and thereby reducing the load on the blockchain. This is called the off-chain approach.

Cryptos Are Becoming More Popular for Everyday Use

According to Mastercard, 71% of people expect to use cashless services moving forward. This means that electronic methods of payment are becoming increasingly popular, and as Bitcoin and other cryptocurrencies are becoming more mainstream people might prefer to use them.

Consumers are also increasingly showing interest in being able to spend crypto assets for everyday purchases. As global interest in cryptocurrencies as a payment method continues to accelerate, 4 in 10 people (40%) across North America, Latin America and the Caribbean, the Middle East and Africa, and Asia Pacific say they plan to use cryptocurrency in the next year.

Mastercard Investor Relations [source]

Mastercard has dabbled with blockchain and digital assets a few times:

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Banking Bitcoin Crypto News Institutions Trading

Goldman Sachs Launches Cryptocurrency Trading Team

Goldman’s cryptocurrency trading desk has been buying and selling Bitcoin (BTC) futures. The team has successfully traded two kinds of Bitcoin-linked derivatives.

According to the memo obtained by CNBC, it serves as the first acknowledgement the New-York based company has given that it is trading in crypto. As part of their initial launch, they successfully executed Bitcoin Non-Deliverable Forward (NDFs) and CME BTC future trades “on a principal basis, all cash settling.”

Earlier in March this year Morgan Stanley became the first big U.S. bank to offer its wealth management clients access to Bitcoin funds. Additionally, Citi also plans to launch crypto trading services after seeing surging interest from clients.

Goldman Sachs might have started crypto trading due to mainstream adoption and to probe the crypto economy should it hold promise for financial institutions. Also, considering the attention other institutions have given Bitcoin, they would have risked being left behind.

However, the firm clearly stated that they are not in a position to trade Bitcoin, or any cryptocurrency (including Ethereum) on a physical basis. Which is why they are traded through CME features.

Looking ahead, as we continue to broaden our market presence, albeit in a measured way, we are selectively onboarding new liquidity providers to help us in expanding our offering.

Goldman Sachs Memo

Goldman Sachs Active In The Crypto-Sphere

Goldman has been one of the very active traditional financial institutions in the crypto space recently.

In addition to the crypto desk, yesterday Goldman launched their Digital Assets dashboard which provides daily and intraday cryptocurrency market data and news to their clients. They’ve also made Bitcoin more accessible to Wall Street with the release of their derivatives.

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Bitcoin Crypto News Institutions

Citibank To Consider Crypto Services After Surge in Client Demand

Citibank, the fourth-largest investment bank in the United States, is exploring the possibility of launching cryptocurrency services after experiencing massive client demand.

Itay Tuchman, Citibank’s global head of foreign exchange, told the Financial Times that the bank has not yet decided if it will offer crypto-related services like custody and trading. However, he said his company is not in a rush, as Tuchman believes crypto is “here to stay.”

I don’t have any FOMO [fear of missing out] because I believe that crypto is here to stay and that we are just at the very beginning of the market. This isn’t a space race. There is room for more than just one flag.”

Crypto Demand Surges in Citibank

Citibank has reportedly seen a “very rapid” surge in interest for cryptocurrencies from several clients, including major asset managers, according to Tuchman.

Back in March, Citibank researchers published a report outlining how Bitcoin could become an “international trade currency” as the market evolves.

“A focus on global reach and neutrality could see bitcoin become an international trade currency. This would take advantage of bitcoin’s decentralized and borderless design, its lack of foreign exchange exposure, its speed and cost advantage in moving money, the security of its payments, and its traceability.”

Reads the report.

Citibank is the latest financial institution to consider joining the crypto train. The news came shortly after Goldman Sachs announced offering BTC derivatives trading as institutional demand continues to grow.

Banks Coming to BTC

2021 has marked a shift in tone from most financial corporations, who at first dismissed cryptocurrencies. However, as the market keeps growing, it seems inevitable that most institutions will embrace cryptocurrencies. And this news follows a story Crypto News recently reported on that Bitcoin is Set To Be Supported By Hundreds of USA Banks This Year.

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Blockchain Crypto News Cryptocurrencies Institutions

University Allocates $4 Million To Cryptocurrency Staking To Produce Cashflow

In a world first, The University of Wyoming in the USA, has allocated USD 4 million to stake at least three cryptocurrencies to generate revenue to address the cost of public education, as per the official announcement.

Caitlin Long, an appointee of Wyoming Blockchain and Fintech Select Committee and founder of Avanti Bank & Trust, took to Twitter with the big news.

Millions into Crypto Staking

The University of Wyoming is the world’s first to spend millions to operate nodes and earn cryptocurrencies. Profits will cover operating expenses and the university’s Strategic Investments and Projects Account (SIPA).

According to the document, the university will run the staking program with an established “Cryptocurrency Advisory Council,” hosted by leaders of the state’s select committee on Blockchain.

Funding Blockchain Programs Across Wyoming

If profits surge above 4 million USD, the university will use the extra revenue to fund blockchain programs and other activities at the university and community colleges across Wyoming.

Users on Twitter speculate that Cardano (ADA) is one of these three tokens, considering IOHK, the company behind Cardano, donated USD 500,000 to support the University of Wyoming’s Blockchain Research and Development Lab.

Will we see other institutions follow Wyoming university and start to stake cryptocurrencies to produce cashflow?

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Bitcoin Crypto News Digital Asset Mining Ethereum Institutions Investing

New Chinese Investment Fund Launches To Entice Asian Institutions Into Crypto

Huobi Asset Management Launches one of Asia’s Largest Virtual Asset Funds as announced on South China Morning Post.

Huobi (Hong Kong) is a wholly-owned subsidiary of Huobi Technology Holdings Limited and is one of the largest virtual asset funds in Asia, looking to meet the growing demand for cypto based investments. Huobi leads the way in the movement of intitutional adoption into cryptocurrency for the Asian market.

Following Grayscale (US), Huobi Asset Management is aimed at professional investors, offering them a virtual assets portfolio. Huobi Asset Management’s new crypto-based funds include a BTC tracker fund, ETH tracker fund, and a multi-strategy virtual asset fund.

Huobi is the second fund manager to receive approval from the Securities and Futures Commission to issue 100% virtual asset funds. Head of Huobi Asset Management, Gillian Wu, explains how the fund could be ideal for the new type of investor, looking to enter the cryptocurrency market.

“According to the professional investors’ knowledge level and risk appetite of virtual assets, we will advise our clients to choose the fund products that best suit their needs. For institutional, especially corporate clients, they want to allocate to virtual assets through a convenient and compliant channel to achieve diversification needs. 

Our Bitcoin and Ethereum tracker fund, in the way of traditional financial products, solves the worries of clients who have to research on their own how to custody, how to account, how to audit this novel asset class and whether there are tax uncertainties, etc. At the same time, some ultra-high net worth individual clients, as well as some large virtual asset miners, who have previously been passively holding their virtual assets, started to look for options to achieve better returns through different market cycles compared to simple passive allocation, thus our active multi-strategy virtual asset fund is born.” 

Gillian Wu

The first pioneers to shine a light on investing in cryptocurrencies were individual retailers. As Bitcoin and Ethereum become more well known and widely adopted, it is only natural that major institutions turn their attention to the crypto space and adapt to follow the trend.

Huobi will offer piece of mind to serious investors, as demand grows for those looking to invest millions. Huobi’s new fund will likely enjoy the success of Grayscale’s Bitcoin Trust, which has been very well received.

Institutions Going Pro Crypto?

Below is a table of the recent cryptocurrency purchases by Institutions.

DateInvestorAmount
28 AprilNexon$100 Million
8 Apr 2021*Meitu$100 Million*
5 Apr 2021MicroStrategy$15 Million
18 Mar 2021Meitu$49 Million
12 Mar 2021*Purpose Bitcoin ETF AUM$900 Million*
12 Mar 2021MicroStrategy$15 Million
8 Mar 2021*Aker ASA$58 Million*
7 Mar 2021Meitu$40 Million
5 Mar 2021MicroStrategy$10 Million
Categories
Bitcoin Crypto News Institutions

MicroStrategy is HODLing 91,579 BTC Announcing 10% Revenue Growth for 2021

Michael Saylor’s big Bitcoin moves have delivered profitable returns for MicroStrategy investors as the company announced a 10% growth in revenue for Q1 2021.

Q1 2021 MicroStrategy Business Highlights

The MicroStrategy First Quarter webinar shows the company acquired 20,857 BTC for and average buying price of $52,087, using proceeds from convertible notes and excess cash.

Michael Saylor is Corporate America’s Poster Boy for Bitcoin

He is the man who became the first CEO of a publicly listed company to purchase Bitcoin for MicroStrategy shareholders, in August 2020. Following Saylor’s lead, other major institutions have jumped on the bandwagon of acquiring Bitcoin, including: Greyscale, Goldman Sachs, Tesla, PayPal, and Visa.

Alotta Money NFT

Michael explains:

Conventional treasury strategies are broken… What are you gonna do? Look at the last 12 months: ROI; Bitcoin is up 461%. S&P is up 25%. If you invested all of your treasury assest in the S&P, you’d’ve kept up with the price of Capital… Gold: up 9%. It’s a disaster; it’s not keeping up with the cost of Capital.

Michael Saylor

As the value of the dollar is becoming more and more inflated, and BTC and other cryptocurrencies out perform traditional stocks, big money is now looking to Bitcoin as a better store of value.

So Why Bitcoin? … I have to manage shareholder value and if you want to maintain or grow shareholder value, you’re gonna have to grow your assets at a rate faster than the cost of Capital.

Michael Saylor

Michael is an enthusiastic evangelist and a pioneer for the movement of mass adoption into investing in Bitcoin. He tweets regularly on the topic and shares his knowledge and opinions freely in interviews, on why he believes Bitcoin to be a superior asset.

Bitcoin as a Store of Value

We’ve heard enthusiasts say over and over that “Bitcoin is a store of value“. It’s “better than gold”. It’s “The Best performing asset”, like, ever. The proof is in the pudding. Actually it’s in Michael Saylor’s MicroStrategy End of Financial Quarter Results report.

Caitlin Carey – Crypto News Guest Author

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Cardano Crypto News Institutions

Cardano Bringing Sustainable Internet Connectivity to users in Zanzibar and Tanzania

Input Output, a technology and engineering company, has partnered with World Mobile Group in a new initiative to bring the internet to users in Zanzibar and Tanzania. The partnership will enable business owners in Africa to supply themselves and others with a connection to the internet and be rewarded for it.

According to a press release, via Cardano Smart Villages in Zanzibar and greater Tanzania will enable users to create “a verifiable digital ID, providing access to vital services such as banking, healthcare, education, and human rights protection.”

The networks that have been established as use cases, which have been up and running for almost 2 years have allowed local fishermen to grow their businesses, quintuple their profits, and triple the number of local shops and restaurants.

World Mobile is delivering a wireless network at a fraction of the cost by using a solar-powered device the runs on a hybrid unlicensed spectrum.

Together, the companies will provide affordable network nodes, based on the Cardano blockchain infrastructure, to local business owners. These network nodes act as local relays for internet connectivity. Subscribers to these networks will be able to access Input Output’s digital identity solution, Atala PRISM,

Input Output

No Infrastructure, No Problem

There are more than 700 million people in Africa that are not connected to the internet. It’s not profitable for network infrastructure companies to extend their reach to these people. For these individuals not having access to the internet bars them from basic services like education, banking, or healthcare.

Who would have guessed that having little to no infrastructure would turn out to benefit Africa in the long run? According to Charles Hoskinson, CEO of Input Output:

That lack of deeply embedded legacy infrastructure makes the transition to blockchain-based infrastructure a relatively low friction process, with the potential for developing countries to ‘leapfrog’ advanced industrialised economies by adopting next-generation infrastructure.

Charles Hoskinson

The application of these technologies in Africa may have the potential to uplift many lives. And since there has been so little investment into infrastructure, there will be little that needs to be replaced and transferred to new infrastructures allowing these companies to build from the ground up.

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Bitcoin Crypto News Institutions

MicroStrategy Plans to Buy More BTC After 52% Surge in Revenue

MicroStrategy has made official its Q1 revenues, showing outstanding profits due to its Bitcoin holding strategy and booming sales of related products.

According to the official company release, MicroStrategy has raised over US$1 billion in additional capital to expand its Bitcoin holdings, to a total of 91,000 BTC —approximately A$6,692,205,190.

MicroStrategy Announces First Quarter 2021 Financial Results

Its total revenues for Q1 were US$122 million, a 10.3 increase compared to the Q1 of last year. Its sales of product licenses and subscription services also boomed, making US$31.3 million, a 52.3% increase compared to 2020.

“MicroStrategy’s first quarter results were a clear example that our two-pronged corporate strategy to grow our enterprise analytics software business and acquire and hold bitcoin is generating substantial shareholder value.”

Quarter 1 Report

MicroStrategy to Buy More BTC this Year

MicroStrategy has been one of the top-tier Bitcoin buyers since mid-2020, allocating substantial amounts of BTC to its balance sheet. It seems the company has not lost its appetite since then, as they reportedly plan to buy and hold more BTC this year.

“We will continue to acquire and hold additional bitcoin as we seek to create additional value for shareholders.”

Its shares (MSTR) surged to one-month highs in mid-April, touching an intra-day high of US$770. Its shares were recently added as a fully tradable tokenised stock (MSTR) on Binance as well, together with gain tech Apple (AAPL) and Microsoft (MSFT).

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Cardano Crypto News Education Institutions

5 Million Students In Ethiopia Set To Get National Identity Solution Powered By Cardano

IOHK has formed a partnership with the Ethiopian Ministry of Education in order to implement a blockchain-based national identity solution for 5 million students and 750,000 teachers.

According to a tweet by IOHK Media this will be the world’s largest blockchain deployment to date.

Cardano (ADA) had also previously announced that they are working closely with Ethiopian private and public sector in order to “democratise social and financial services for the world’s 1.7 billion ‘unbanked’ people in Africa”.

How Will Digital Identity Help Students?

By using blockchain technology, qualifications attained by individuals can be verified by the system and therefore ending fraudulent university and jobs applications. Employers will be able to verify the individuals credentials without a third party.

Student IDs will also be paired with data from Learning Management Systems and harnessed by machine learning algorithms to drive personalised teaching, a dynamic curriculum, and data-driven policies and funding.

All teachers and pupils will be issued with tablets with a dedicated network where students can access their academic records. This infrastructure will open the doors to higher education and employment for 80% of students who live in rural regions.

This forms a key plank of our National Digital Transformation Strategy and will underpin a uniquely transparent, data-driven education system based on a dynamic curriculum.

Getahun Mekuria, Ethiopian Education Minister

Is Ethiopia Ready For Such Radical Change?

Doing business in Africa can be difficult due to lack of infrastructure as well as political instability in most countries. Ethiopia is no exception with their inhabitants experiencing Internet shutdowns as well as military forces fighting in the Tigray region. In a report by the Guardian almost 2,000 people killed in more than 150 massacres in this area.

However on the positive side there is a strong belief that blockchain technology is a possible catalyst to end digital exclusion and increase access to higher education.

Ethiopia’s Sheba Valley is already recognised as the leading AI hub in Africa, 70 per cent of our university graduates are in STEM subjects and we are now leading the way in using blockchain to digitalise education.

Getahun Mekuria, Ethiopian Education Minister

IOHK have set major goals, and it seems that they have quite the task ahead to be able to make their vision a reality amid the harsh realities surrounding them in Ethiopia.