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MicroStrategy announces new purchase of BRL 940 million in Bitcoin

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MicroStrategy announced this Wednesday (24) that it acquired another 3,907 Bitcoins (BTC). The amount paid was US$ 45,292, which gives a total of R$ 940 million for the purchase. As a result, the company accumulates 108,992 BTC in custody, totaling $2,918 billion.

BTCs were acquired between July 1 and August 23, but the company did not disclose the specific date. The purchase brought MicroStrategy’s average acquisition cost per BTC to $26,769. The company’s CEO, Michael Saylor, also shared news of the acquisition.

In this way, Saylor reinforces the message that MicroStrategy intends to buy BTC even though it has accumulated a billion-dollar loss. In July, the company reported a $689 million loss on its BTCs. However, the value is an unrealized loss, as the company did not make sales.

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MicroStrategy registers profit even when buying “high”

This purchase was the first time the company bought BTC at a time of “high” in price. After all, the price of BTC was close to a defining zone just a few weeks ago. Even so, the purchase resulted in a good profit for the company.

The total purchase amount in dollars was US$177 million with the BTC being worth US$45,292. Currently, each unit costs $48,126, meaning the purchase of MicroStrategy is now worth $188 million. Thus, the purchase has already resulted in an appreciation of 5.85%.

In the accumulated total of its reserves, MicroStrategy has accumulated gains of 73.2% since it made its first purchase just over a year ago. The company’s strategic vision remains focused on the long term, according to Saylor’s vision.

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“If you’re trying to improve your balance, my best idea is Bitcoin. If you’re trying to improve your technology, my best idea is Lightning Network,” Saylor said in a recent tweet.

Bitcoin grows in price and technology

By the way, Saylor’s message mentioning Lightning Network (LN) didn’t come by chance, as the network has reached big marks recently. First, LN surpassed the $100 million mark in BTC allocated in the network.

That is, more and more people are using LN and trusting large amounts of money in transactions. Thus, the network gradually leaves its experimental status behind and takes small but important steps towards mass adoption.

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Another metric that grew was the number of nodes in the network, which now exceeds 25,000 nodes. The growth was 8% in the last 30 days. A node is essentially a “user” on the network that configures your computer to interact with other nodes. That way they can send, verify and receive information – in this case, BTC.

Finally, LN’s capacity grew around 78% in the same period, going from 1,800 to more than 2,300 BTC, according to data from the 1ml website. This capacity corresponds to the total funds that can be transacted within the network.

Such growth is driven by the growing need for a solution to Bitcoin’s scalability problem. As the blockchain is only capable of seven transactions per second, these solutions are necessary so that the network can be used en masse. Currently, companies like Lightning Labs and Strike are working on solutions to enable LN as quickly as possible.

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Also Read: Bitcoin Rates Remain Low Even With Appreciation

Also read: Huobi wants to return to Brazil and starts accepting deposits in Reais

Also read: Itaú says it will continue to deny opening accounts to cryptocurrency exchanges, in response to ABCB

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Terra prepares to burn more than 9% of LUNA’s total supply

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Burning nearly 90 million LUNA tokens into the community pool can put an upward pressure on the native token’s price.

Do Kwon, co-founder and CEO of Terraform Labs, the South Korean company behind the blockchain project Terra (LUNA), recently announced on Twitter that on-chain voting for project 44’s proposal will begin on Wednesday. ).

The proposal to start burning 88,675,000 LUNA from the community pool to mint 3 – 4 billion UST will reduce the total supply of native token by more than 9%.

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TVL on Earth reached ATH

After the integration of the IBC protocol last week and the launch of Wormhole V2 support for Terra, the total blocked value (TVL) in protocols on the network has reached a new high.

Last week, TVL on Earth reached $10.22 billion, with the Anchor, Lido, Mirror and Terraswap protocols accounting for more than 90% of the amount, according to data from DeFi Llama.

Currently, at US$9.97 billion, Terra is ranked as the fourth blockchain with the largest TVL, following Ethereum, Binance Smart Chain and Solana.

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New Bitcoin ETF Offers Shorting Bitcoin Futures, Creators Warn of Multiple Risks

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Direxion has filed for a Bitcoin ETF that allows traders to short BTC futures contracts

According to an article by Bloomberg, a new Bitcoin ETF, if approved, will enable traders to short Bitcoin futures. The filing was submitted on Tuesday, Oct. 26.

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Direxion wants to launch Bitcoin futures ETF for short-sellers

Bloomberg has written that, on Oct. 26, Direxion submitted documentation to launch the Direxion Bitcoin Strategy Bear ETF. Last week, two ETFs that track the performance of Bitcoin futures were launched by ProShares and Valkyrie.

Now, the BTC futures ETF industry in the U.S. may reach a new milestone—if the launch of the ETF for bears is approved by the U.S. Securities and Exchange Commission.

The debut of Bitcoin futures products last week prompted Bitcoin growth to almost $67,000 and a new all-time high.

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However, today, the flagship cryptocurrency retreated below the $60,000 level as a mind-blowing half-a-million worth of liquidations were conducted across major exchanges: Binance, Bitfinex, OKEx, Huobi and so on.

Slightly over $500 million worth of those crypto liquidations were long positions.

BITO ETF gains $1 billion in just two days

ProShares Bitcoin ETF last week became the second-most-traded asset on the NYSE on its first day of trading. Buy orders to the tune of 10,100 were placed on BITO (the ticker the ETF goes by), and seven times more orders were placed to sell it.

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After trading for two days, BITO reached $1 billion in net asset value. That is the equivalent of the net asset value of several Canadian Bitcoin ETFs that have been trading for a while already.

Direxion fund bears lots of risks

The new Bitcoin ETF filed for by Direxion bears numerous financial risks for short-sellers, the company warns. Trading this ETF may lead to shorters getting wiped out, Bloomberg writes, and Bitcoin’s massive price swings would be a problem here, too.

The SEC filing states that if you are not prepared to lose all your funds by investing in this ETF, you should not bet on it.

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This week, some in the crypto community also expect another Bitcoin futures ETF to kick off—the one filed for by the VanEck asset manager.

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Blockstream is sponsoring this tech for scaling Bitcoin [BTC]

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Major blockchain technology company, Blockstream has announced its sponsorship of work on Federated E-Cash. For the uninitiated, David Chaum was the man behind the concept of E-Cash that predates Bitcoin.

E-Cash Federation, on the other hand, is an entity that comprises of independent members assembled to develop a multi-sig wallet for the purpose of being a “blind, distributed custodian by acting as an e-cash mint.”

One of the main factors that have impeded Bitcoin’s adoption is scalability. On that note, Adam Back-led Blockstream has made significant strides. Even as scaling solutions like the Lightning network and federated sidechains have paved the way for large-scale adoption of the crypto-asset, they are yet to see substantial growth. Here come Federated blind mints, which the tech firm believes are a “natural complement to the existing scaling solutions.”

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Blockstream’s tryst about Bitcoin scaling

Blockstream stated that Federated E-Cash can help scale Bitcoin. It cited an innovative exciting possibility of integrating LN into federated mints. This, in turn, would make them interoperable with each other and the broader space. It further stated,

“One could imagine the emergence of community-run federations, where users have a natural trust in the federation members, which isn’t the case with traditional custodians. For the larger number of Bitcoin users who rely on custodial wallets to store their bitcoin, switching to an E-Cash Federation, reduces the trust profile and increases the privacy guarantee for these users.”

Blockstream is looking at an experimental project of a Federated E-Cash scheme dubbed MiniMint that is currently under development.

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$16M Funds for Bitcoin mining STO

The latest news comes a week after Blockstream announced raising $16 million funds in the sixth tranche of its BTC mining-focused security token [STO], called the ‘Blockstream Mining Note [BMN].’ This marked the rapidly rising interest from individual and institutional investors.

It was in March 2021 when Blockstream formally unveiled its BMN security token. Its offering essentially facilitated non-United States investors with an alternative to mine Bitcoin or invest in BTC mining stocks mining BTC with the help of BMN’s associated hash rate. Additionally, it was issued on Bitcoin’s Liquid sidechain with each BMN Series 1 granting market players up to 2k Tera hashes per second of BTC mined at the Canadian blockchain technology company’s enterprise-grade mining facilities.

Besides, Blockstream is also gearing up to list its BMN security token on Bitfinex Securities, which happens to be a relatively new STO platform by Bitfinex.

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Blockstream’s tryst about Bitcoin scaling

Blockstream stated that Federated E-Cash can help scale Bitcoin. It cited an innovative exciting possibility of integrating LN into federated mints. This, in turn, would make them interoperable with each other and the broader space. It further stated,

“One could imagine the emergence of community-run federations, where users have a natural trust in the federation members, which isn’t the case with traditional custodians. For the larger number of Bitcoin users who rely on custodial wallets to store their bitcoin, switching to an E-Cash Federation, reduces the trust profile and increases the privacy guarantee for these users.”

Blockstream is looking at an experimental project of a Federated E-Cash scheme dubbed MiniMint that is currently under development.

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