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Crypto Exchange Bullish Plans to Go Public Via SPAC Valued At $9B

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Cryptocurrency exchange Bullish has made an announcement that it plans to go public on the New York Stock Exchange through a merger with Far Peak Acquisition Corp, a special purpose acquisition firm (SPAC), in a $9 billion deal.

Bullish, a Block.one blockchain software firm, plans to establish a regulated crypto exchange later this year to enable institutional and retail investors to generate yield for their cryptocurrencies.

Through the merger deal, Bullish expects to get an estimate of $600 million in proceeds from Far Peak and another $300 million through private investment in public equity (PIPE). Prominent investors participating in the PIPE include Mike Novogratz’s crypto firm Galaxy Digital and BlackRock, the world’s largest asset manager.

Combining Bullish with Far Peak firm is said to have a pro forma equity value of about $9 billion. 

“Bullish’s entry into the public markets allows our customers to take part in Bullish by holding a piece of our company, without any of the regulatory uncertainties or jurisdictional limitations of a profit-sharing token issuance,” Brendan Blumer, Block.one’s CEO and the incoming chairman of Bullish.

Bullish began in May this year as a subsidiary of blockchain software company Block.one with backing from well-known investors, including prominent venture capitalist Peter Theil.

Meanwhile, Thiel’s companies, Founders Fund and Thiel Capital, participated in Bullish’s capital fundraising in May as well. Other investors who participated in Bullish’s fundraise include the US hedge fund manager Louis Bacon, British hedge fund manager Alan Howard, German investor Christian Angermayer’s Apeiron Investment Group, Japanese Nomura bank, and Galaxy Digital. The merger deal is scheduled to close towards the end of this year.

Far Peak is a SPAC firm whose focus is to bring major financial and fintech companies to the public.  Far Peak chairman and CEO Thomas Farley, who served as the president of the New York Stock Exchange in the past, will become the CEO of Bullish. 

Farley’s leadership at the crypto exchange is important given his experience with financial regulators from his time at the New York Stock Exchange. The development comes when additional regulations are likely as regulators across the globe are closely watching the crypto sector.

Why Crypto Firms Prefer SPAC Mergers?

SPAC mergers are becoming increasingly common for cryptocurrency firms to go public with exchanges such as eToro and lending financial technology firm SoFi merging with special purpose acquisition companies to go public.

Last week, June 9, Circle crypto firm announced plans to go public through a merger deal with Concord Acquisition Corp, A SPAC company.

There are reasons why most companies, such as crypto firms, opt to participate in SPAC deals rather than going public with a traditional IPO or taking private equity investment.

First, public firms trade at higher multiples than private firms; therefore, SPACs provide an opportunity for a higher valuation. The second reason is that while business owners lose some control when taking on private equity, SPAC allows them to maintain a significant stake in the firm.

Besides that, SPACs provide security in liquidity through capital raised in the initial public offering (IPO). SPACs are normally completed in just 2 to 3 months which is faster than traditional approaches, unlike traditional IPOs that can take up to 2 to 3 years to finalize.

Also, traditional IPOs are normally expensive to execute, while SPACs usually pay for most of the costs, thus saving a huge amount of funds for the company. Lastly, SPAC deals are made ahead of time, and both parties agree on their valuations rather than hopping when the window is open.

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Source: https://Blockchain.News/news/crypto-exchange-bullish-plans-go-public-via-spac-valued-9b

Blockchain

The Listing of Clean Energy Crypto-Mining & Semiconductor ETF on NYSE Launches

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The clean energy encrypted mining and semiconductor exchange-traded fund (ETF), created by a registered investment advisor and emerging fund manager Viridi, was officially traded on the New York Stock Exchange on July 20 under the code name RIGZ.

This is the first active management ETF focusing on clean energy encryption mining and the mining infrastructure industry in the United States. The fund also includes semiconductor and professional computer chip manufacturers such as Samsung Electronics, Nvidia, and Advanced Micro Devices.

Viridi Fund stated that the purpose of establishing this ETF is in the hope that more investors can understand the emerging field of the cryptocurrency better through regulated investment tools.

The environmental, social, and governance (ESG) issues caused by cryptocurrency mining have always received intense attention from individual investors and institutional investors. But Viridi said that Bitcoin mining is still a particularly suitable investment industry because more than half of Bitcoin mining in North America can be done by using renewable energy.

The cryptocurrency mining industry has also been committed to providing environmentally-focused products to achieve resource sustainability.

The Chief Executive Officer of Viridi Funds, Wes Fulford, said that:

“Bitcoin and cryptocurrencies continue to grow in importance, and we are witnessing a new wave of institutional support for this emerging asset class. We launched RIGZ to provide investors with an ETF that attempts to align purpose and profit by investing in the infrastructure that underpins the entire ecosystem with sustainability in mind.”

Due to China intensified law enforcement against domestic Bitcoin mining activities. Most Bitcoin mining sites in China were reportedly massively disconnected by losing power supply and abilities for further BTC mining operations. Therefore, many mining industries decided to migrate out of China to North America.

The cryptocurrency miner BIT Mining Limited, a Shenzhen-based company that announced that it would raise $50 million through private placement to expand its crypto mining business to overseas markets, as reported by Blockchain.News on July 14.

Wes Fulford believes that this is a wise decision as the old inefficient machines will be shut down in China. Operations will be moved to more environmentally friendly locations and use a new generation of more energy-efficient rigs. Therefore, Bitcoin mining is becoming less harmful to the environment compared to the previous damages.

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
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Source: https://Blockchain.News/news/the-listing-clean-energy-crypto-mining-semiconductor-etf-nyse-launches

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Blockchain

The Listing of Clean Energy Crypto-Mining & Semiconductor ETF on NYSE Launches

Published

on

The clean energy encrypted mining and semiconductor exchange-traded fund (ETF), created by a registered investment advisor and emerging fund manager Viridi, was officially traded on the New York Stock Exchange on July 20 under the code name RIGZ.

This is the first active management ETF focusing on clean energy encryption mining and the mining infrastructure industry in the United States. The fund also includes semiconductor and professional computer chip manufacturers such as Samsung Electronics, Nvidia, and Advanced Micro Devices.

Viridi Fund stated that the purpose of establishing this ETF is in the hope that more investors can understand the emerging field of the cryptocurrency better through regulated investment tools.

The environmental, social, and governance (ESG) issues caused by cryptocurrency mining have always received intense attention from individual investors and institutional investors. But Viridi said that Bitcoin mining is still a particularly suitable investment industry because more than half of Bitcoin mining in North America can be done by using renewable energy.

The cryptocurrency mining industry has also been committed to providing environmentally-focused products to achieve resource sustainability.

The Chief Executive Officer of Viridi Funds, Wes Fulford, said that:

“Bitcoin and cryptocurrencies continue to grow in importance, and we are witnessing a new wave of institutional support for this emerging asset class. We launched RIGZ to provide investors with an ETF that attempts to align purpose and profit by investing in the infrastructure that underpins the entire ecosystem with sustainability in mind.”

Due to China intensified law enforcement against domestic Bitcoin mining activities. Most Bitcoin mining sites in China were reportedly massively disconnected by losing power supply and abilities for further BTC mining operations. Therefore, many mining industries decided to migrate out of China to North America.

The cryptocurrency miner BIT Mining Limited, a Shenzhen-based company that announced that it would raise $50 million through private placement to expand its crypto mining business to overseas markets, as reported by Blockchain.News on July 14.

Wes Fulford believes that this is a wise decision as the old inefficient machines will be shut down in China. Operations will be moved to more environmentally friendly locations and use a new generation of more energy-efficient rigs. Therefore, Bitcoin mining is becoming less harmful to the environment compared to the previous damages.

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://Blockchain.News/news/the-listing-clean-energy-crypto-mining-semiconductor-etf-nyse-launches

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6.2 Million Bitcoins are Being Held at a Loss, Representing 33% of BTC Supply

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Ever since Bitcoin (BTC) nosedived from an all-time high (ATH) price of $64.8K recorded in mid-April, 6.2 million coins are being held at a loss, representing 33% of supply. 

Market analyst Lark Davis explained

“According to Glassnode, an incredible 6.2 million Bitcoins are sitting in a position of unrealized losses right now.”

Image

Unrealized loss entails the decline in the value of an asset that has not yet been sold. Therefore, 6.2 million BTC continue being held by investors at a price lower than they were bought.

Low volatility has been one of the primary factors making Bitcoin not go back to its ATH levels as institutional investment has dried up. Furthermore, an intensified crackdown on BTC mining by Chinese authorities has negatively impacted this market. 

Nevertheless, a recent Fidelity study showed that 70% of institutional investors were still eyeing the crypto market in the future, which offers hope for the leading cryptocurrency. 

Bitcoin’s illiquid supply change shows more accumulation

Davis also noted that BTC’s illiquid supply change was firmly showing that investors were accumulating.

Image

Bitcoin, therefore, is lying at a critical support level because 10.5% of its supply was transacted between $31K and $34K. 

Image

If this level is lost, the top cryptocurrency could be sold in a panic, ending with a cascading effect as more panic sellers could create.

Bitcoin collapse?

BTC has dropped below the psychological price of $30K on Tuesday, Jul 20, for the second time since mid-May. The entire crypto market found itself on the receiving end because nearly $98 billion was lost. 

However, some analysts are convinced that is not surprising. Ulrik K.Lykke, executive director at Crypto/Digital Assets Hedge Fund ARK36, said:

“A drop below the $30K level isn’t surprising or overly concerning as BTC has traded in the $30-34K level for more than 8 weeks now, struggling to gain support above that barrier. In such market conditions, some investors may grow a little restless, especially that Bitcoin and the general digital asset markets are facing increased regulatory scrutiny.

Yet, Bitcoin had regained some momentum in the last 24 hours when it was up by 3.36% and rebounded above $30,816 during intraday trading, according to CoinMarketCap

Ruud Feltkamp, CEO of automated trading bot platform Cryptohopper, said it would be interesting to see if the rebound can support and keep its strength. If it tests the support again, ” it would probably not see such a bounce and face a sell-off to $23K.” 

“As expected, Bitcoin bounced back up after falling below $30k. The support at $30k is so strong that going below this now almost magic threshold would almost always respond in a bounce.”

 

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://Blockchain.News/analysis/6.2-million-bitcoins-are-being-held-at-a-loss-representing-33-percent-btc-supply

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Blockchain News

6.2 Million Bitcoins are Being Held at a Loss, Representing 33% of BTC Supply

Published

on

Ever since Bitcoin (BTC) nosedived from an all-time high (ATH) price of $64.8K recorded in mid-April, 6.2 million coins are being held at a loss, representing 33% of supply. 

Market analyst Lark Davis explained

“According to Glassnode, an incredible 6.2 million Bitcoins are sitting in a position of unrealized losses right now.”

Image

Unrealized loss entails the decline in the value of an asset that has not yet been sold. Therefore, 6.2 million BTC continue being held by investors at a price lower than they were bought.

Low volatility has been one of the primary factors making Bitcoin not go back to its ATH levels as institutional investment has dried up. Furthermore, an intensified crackdown on BTC mining by Chinese authorities has negatively impacted this market. 

Nevertheless, a recent Fidelity study showed that 70% of institutional investors were still eyeing the crypto market in the future, which offers hope for the leading cryptocurrency. 

Bitcoin’s illiquid supply change shows more accumulation

Davis also noted that BTC’s illiquid supply change was firmly showing that investors were accumulating.

Image

Bitcoin, therefore, is lying at a critical support level because 10.5% of its supply was transacted between $31K and $34K. 

Image

If this level is lost, the top cryptocurrency could be sold in a panic, ending with a cascading effect as more panic sellers could create.

Bitcoin collapse?

BTC has dropped below the psychological price of $30K on Tuesday, Jul 20, for the second time since mid-May. The entire crypto market found itself on the receiving end because nearly $98 billion was lost. 

However, some analysts are convinced that is not surprising. Ulrik K.Lykke, executive director at Crypto/Digital Assets Hedge Fund ARK36, said:

“A drop below the $30K level isn’t surprising or overly concerning as BTC has traded in the $30-34K level for more than 8 weeks now, struggling to gain support above that barrier. In such market conditions, some investors may grow a little restless, especially that Bitcoin and the general digital asset markets are facing increased regulatory scrutiny.

Yet, Bitcoin had regained some momentum in the last 24 hours when it was up by 3.36% and rebounded above $30,816 during intraday trading, according to CoinMarketCap

Ruud Feltkamp, CEO of automated trading bot platform Cryptohopper, said it would be interesting to see if the rebound can support and keep its strength. If it tests the support again, ” it would probably not see such a bounce and face a sell-off to $23K.” 

“As expected, Bitcoin bounced back up after falling below $30k. The support at $30k is so strong that going below this now almost magic threshold would almost always respond in a bounce.”

 

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://Blockchain.News/analysis/6.2-million-bitcoins-are-being-held-at-a-loss-representing-33-percent-btc-supply

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