SEC, FINRA Probe Crypto Treasury Companies
Yesterday the WSJ reported that the SEC and FINRA has sent out letters to roughly 200 digital asset treasuries (DATs) around concerns of insider trading, with a deeper investigation in the cards. Ironically, the news hit on the day crypto markets got flushed (see story below), leading some to believe that this may have sparked liquidations. The regulatory inquiries focused on unusual trading patterns, including abnormally high trading volumes and sharp stock price increases in the short periods preceding public announcements about crypto purchases, according to the report. Read more →
Crypto Correction?
Bitcoin prices dropped below $109k this morning as liquidations in the total crypto markets were more exceeded $1.1 billion over the past 24 hours. According to Glassnode, it all looks like a “textbook ‘buy the rumour, sell the news’ pattern… the broader backdrop points to growing exhaustion.” At the same time, ETF inflows that previously absorbed supply have slowed, creating a fragile balance. BTC is now down 6% over the past week and more than 11% from its August ATH of $124,128. For context though, BTC is still up more than 65% from a year ago when it traded at $65k. Be prepared for another dip lower. Read more →
Kraken raises $500 million at $15 billion valuation
Unlike most other crypto companies that are rushing to the IPO exit right now, Kraken seems to be following a different track. While the company no doubt intends to go public, today’s announced fundraise of $500 million feels more like an “optionality round” than anything else. That is, optionality to either wait out an overinflated market that crashes out, or to ride the wave of hype and have a 300%-pop type IPO. Read more →
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