Concerns surrounding MicroStrategy’s Bitcoin strategy and debt obligations have been labeled as exaggerated by Anthony Scaramucci, founder of SkyBridge Capital. Speaking in an interview, Scaramucci dismissed the fears of a financial collapse tied to MicroStrategy’s substantial Bitcoin holdings and debt structure, explaining that only a prolonged and systemic Bitcoin crash spanning several years would destabilize the company. Long-Term Debt Structure Shields MicroStrategy MicroStrategy’s financial strategy has attracted attention due to its aggressive Bitcoin acquisitions , funded largely through convertible debt and equity sales. The company currently holds $46.02 billion worth of Bitcoin, with an unrealized profit of $18.9 billion. Critics argue that Bitcoin price volatility could jeopardize MicroStrategy’s ability to service its debt, potentially leading to forced Bitcoin sales and market disruptions. However, Anthony Scaramucci emphasized that MicroStrategy’s debt is structured for the long term, reducing the risk of immediate financial distress. “If you really study his balance sheet, he has long, long-term debt, and he has rolling long-term debt,” Scaramucci said, referring to Michael Saylor, MicroStrategy’s executive chairman. He added that a systemic Bitcoin crash would need to last six or seven years to pose a significant threat to the company’s financial stability. Market Concerns About Bitcoin Price Volatility MicroStrategy’s reliance on Bitcoin as a corporate asset has fueled skepticism among investors. The company’s shares have soared by over 400% this year, driven by Bitcoin’s record-breaking price surges. However, Bitcoin price has recently retreated from its all-time high of $108,000, leading to renewed concerns about MicroStrategy’s exposure to market volatility. Despite this, Anthony Scaramucci believes fears of forced Bitcoin sales are unfounded. “The narrative of him being forced to sell hundreds of thousands of tokens into the market, I think it’s a forced narrative,” he said. Scaramucci attributed this confidence to his Wall Street experience, adding that MicroStrategy’s debt structure is fundamentally different from situations like the 2008 collapse of Lehman Brothers. MicroStrategy Temporary Halt to Bitcoin Purchases Rumors have surfaced that MicroStrategy may pause Bitcoin acquisitions in January due to potential blackout restrictions on share or convertible debt issuance. Such blackout periods are common for publicly traded companies, often imposed around fiscal quarter closings to comply with insider trading regulations. Speculation suggests that the restrictions could prevent Michael Saylor from issuing convertible debt to finance additional Bitcoin purchases. However, analysts believe the potential pause would have limited impact, given the company’s substantial existing Bitcoin holdings and its history of regulatory compliance. MicroStrategy’s next earnings report is expected between February 3 and 5, 2025, with analysts predicting that any blackout period would span January or begin mid-month. The company’s inclusion in the NASDAQ 100 index on December 23 has also raised theories that internal recommendations may have prompted this move. Bitcoin Outlook Remains Positive While Bitcoin’s recent price retreat has sparked concerns, Anthony Scaramucci remains optimistic about the cryptocurrency’s long-term potential. He acknowledged that Bitcoin could experience corrections of 30% to 40% next year, possibly dropping to $60,000–$70,000. However, he highlighted factors such as the introduction of Bitcoin exchange-traded funds (ETFs) and potential favorable legislation that could support Bitcoin’s price stability. “Could it get to $18 trillion dollars in market cap? We believe that it could,” Scaramucci said, while cautioning that the path to such a valuation would not be linear. He also noted that Bitcoin’s growing adoption and institutional interest could continue driving its appreciation over time. The post MicroStrategy Debt Safe Unless Bitcoin Collapses for Seven Years: Scaramucci appeared first on CoinGape .
Tether, the issuer of the world’s largest stablecoin, USDT, has announced a $775 million investment into Rumble, a video-sharing platform and cloud services provider. This strategic move has sent Rumble stock soaring by 44.6% in aftermarket trading. The investment, valuing Rumble shares at $7.50 each, will boost the platform’s financial stability and growth prospects. Tether $775M Rumble Investment Sends Stock Soaring 44.6% Following a recent press release, Tether revealed its decision to acquire 103,333,333 shares of Rumble’s Class A Common Stock at $7.50 per share. The $775 million transaction marks a strategic move into decentralized communications. News of the investment triggered a sharp 44.6% increase in Rumble’s stock price during aftermarket trading, reflecting investor optimism about the collaboration. Rumble’s stock had been experiencing a downturn following Federal Reserve announcements on interest rates. However, Tether’s backing has restored market confidence, driving the share price upward. This highlights the growing ties between cryptocurrency initiatives and decentralized media platforms. This Is A Breaking News, Please Check Back for More. The post Tether Invests $775M In Rumble Sparking Massive Stock Price Jump appeared first on CoinGape .
The Brazilian Senate scheduled a meeting to discuss the future and possibilities of crypto markets in 2025. The meeting will debate the opportunities and challenges that the adoption of these presents for the Brazilian state. Multi-Partisan Group Proposed to Discuss Crypto in the Brazilian Senate Next Year Crypto is becoming a common subject in legislative
Follow Frank on X . On a recent episode of the Coinage podcast, guest SEC Commissioner Hester Peirce said that she is open to reconsidering in-kind redemptions for spot bitcoin ETFs. (For those who aren’t familiar with the term “in-kind redemption,” it refers to the ability to withdraw the bitcoin you’ve purchased via an ETF into your own custody. In essence, it turns a bitcoin IOU into the real thing.) BREAKING: SEC Commissioner Hester Peirce previews new pro-crypto changes coming to the SEC ETF in-kind redemptions and ability for ETF issuers to begin staking likely done "early on" Both ETFs now have more than $100B in AUM pic.twitter.com/g3jtbuBeWU — Coinage (@coinage_media) December 20, 2024 This makes my heart happy, as bitcoin wasn’t designed to exist trapped within the wrappers of the old system. It was built to set us free from that system. If Peirce can work with the incoming SEC Chair, Paul Atkins, to facilitate the approval of in-kind redemptions then the spot bitcoin ETFs can serve as some of the biggest on-ramps to Bitcoin, as Bitwise co-founder Hong Kim put it , as opposed to simply existing as speculation vehicles. Bitcoin was born to exist in the wild. It wasn’t born to exist in a Wall Street zoo. In-kind redemptions would allow the bitcoin currently trapped within the zoo the ability to return to its natural habitat. This article is a Take . Opinions expressed are entirely the author's and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Michael Saylor proposes a Strategic Bitcoin Reserve to create significant economic value. His plan includes empowering businesses and generating trillions in revenue. Continue Reading: Michael Saylor Demonstrates a Unique Mechanism for Creating 81 Trillion Dollars The post Michael Saylor Demonstrates a Unique Mechanism for Creating 81 Trillion Dollars appeared first on COINTURK NEWS .
Cryptocurrency companies Ripple and Kraken have collectively pledged $6 million to support President-elect Donald Trump’s inauguration. Ripple is contributing $5 million in its native XRP token, while Kraken has donated $1 million to the Trump-Vance inaugural committee managing the celebrations. Ripple and Kraken Pledge $6M For Donald Trump Inauguration According to a report by FOX Business , Ripple and Kraken are among the cryptocurrency firms contributing to the record-breaking $200 million inaugural fund. The contributions aim to support the three-day celebration marking the swearing-in of Donald Trump and Vice President-elect J.D. Vance on January 20, 2025. Ripple’s $5 million donation will be made in its native XRP token. This reflects the XRP company’s commitment to advancing its presence in the political landscape. Similarly, Kraken, a top crypto exchange , has contributed $1 million in support of the inaugural events. This marks the first time many crypto companies have participated in funding a presidential inauguration. Additionally, President-elect Donald Trump has acted quickly to deliver on his campaign promises to support the cryptocurrency industry. Trump recently nominated Paul Atkins , known for his crypto-friendly stance, as the next chairman of the Securities and Exchange Commission (SEC). Concurrently, David Sacks has been appointed as the first-ever crypto and AI czar, tasked with bridging the gap between the industry and regulators. Sacks will oversee policy initiatives and head the Presidential Council of Advisors for Science and Technology. Showcasing his crypto-friendly stance, the new crypto czar has already outlined plans to investigate Operation Choke Point 2.0 amid growing industry complaints. David Sacks has pledged to address the concerns highlighted by Coinbase’s release of FDIC “pause letters.” Tech and Crypto Leaders Join Record-Breaking Inaugural Fund The Trump-Vance inaugural committee has already raised $200 million, surpassing all previous records. Major contributions from tech giants like Jeff Bezos, Mark Zuckerberg, and Vlad Tenev, alongside cryptocurrency leaders, underscore the broad support for the event. Each of these tech executives has pledged $1 million or more to the fund. Stressing the importance of crypto industry support for the president-elect, Kraken co-CEO Arjun Sethi told FOX Business, “For the first time, we have a President who truly understands the potential of disruptive technology and embraces the crypto sector. We’re excited to continue to work with President-Elect Trump and his administration to push for long-overdue regulatory clarity and unlock this next wave of innovation.” These developments come as the US appeals court reveals key dates for the Ripple case. The opening brief is scheduled for March 6, 2025, and XRP company’s answering brief is due by April 7, 2025. The court also set deadlines for the mediation questionnaire and appeal transcripts, marking significant steps in the long-running XRP lawsuit. The post Ripple & Kraken Contribute $6M To Donald Trump Inauguration appeared first on CoinGape .
The native token of a decentralized fiat stablecoin-issuing platform is rallying against the dipping crypto markets. Two days ago, the world’s largest crypto exchange by trading volume, Binance, added support for Usual Protocol ( USUAL ). “Binance is excited to announce that Usual (USUAL) will be added to Binance Simple Earn, Buy Crypto, Binance Convert, Binance Margin, Binance Auto-Invest, and Binance Futures at the respective dates and timings listed below.” According to a post on the social media platform X from Usual in response to the Binance listing, the team says the protocol aims to usher in a “stablecoin renaissance”. “9 0% for the Community: Usual is built to empower, with the majority of tokens for users. No VC (venture capital)/Team Dumps: Just 10% allocated to insiders, cliffed for one year. 100% Revenue for the DAO (decentralized autonomous organization): Every $ of revenue belongs to USUAL holders” According to the Usual Protocol’s website , USUAL acts as a governance token performing two major functions: “1. Usual is a multi-chain infrastructure that aggregates the growing tokenized Real-World Assets (RWAs) from entities like BlackRock, Ondo, Mountain Protocol, M0 or Hashnote to transform them into a permissionless, on-chain verifiable, and composable stablecoin (USD0). 2. Usual is built around the redistribution of power and ownership to users & third parties, akin to a scenario where Tether’s TVL providers would own the company and the associated revenues.” USUAL is going for $1.43 at time of writing, up 17% on the day. Meanwhile, the total crypto market cap is down 6% over the same period. Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post It’s Not Unusual: Stablecoin Platform Altcoin USUAL Bucks Crypto Downtrend Following Binance Listing appeared first on The Daily Hodl .
The market for Dogecoin (DOGE) is contracting: the memecoin shed more than 25% of its value during the last three days. The broader market is still bearing the brunt of Bitcoin’s crash, worrying both investors and speculators. Related Reading: SUI The Rising Star: Analyst Foresees Over $25 Breakthrough Market Overview: A Sudden Change The recent drop in the value of crypto assets has caused around $787 million to be lost through liquidations of different types of digital assets. Dogecoin, which is often considered as a joke, has been among the hardest hit. Approximately $29 million in DOGE liquidations were recorded recently, with bullish positions suffering the most losses, according to CoinGlass data. In a mere 24 hours, the price of Dogecoin plummeted to a low of $0.34 before ultimately stabilizing at approximately $0.365, a 6.05% decline. Macroeconomic issues influencing more general market movements can help to explain this fall. The Federal Reserve’s concern about interest rate cuts has aggravated bearish attitude. For example, Ethereum and Dogecoin followed suit after Bitcoin’s value dropped to the $94k level. A Closer Examination Of Liquidation Issues Approximately $24 million in bullish wagers on Dogecoin were liquidated in the past 24 hours, while $5.93 million in losses were attributed to short positions. The market’s present extreme volatility is underscored by this wave of liquidations. Dogecoin is currently approaching critical support levels, as noted by analysts. Some analysts have speculated that it could fall below $0.20 if adverse momentum persists. Key support levels for DOGE are being closely monitored by market analysts. The Relative Strength Index (RSI) suggests that Dogecoin may be oversold, which could indicate a potential rebound if traders are able to effectively defend the critical price zones. Related Reading: Solana Poised For Growth In 2025 With Record $173 Million Q3 Funding—Report The Road Ahead For Dogecoin Despite the present challenges, market watchers’ future expectations of Dogecoin remain high. Some analysts believe that DOGE’s capacity to maintain a weekly closing above $0.26 will help to create a recovery rally toward higher goals. Still, the reality of continuous market pressures and unpredictability helps to temper this hope. As they negotiate this stormy terrain, many traders are left wondering how low Dogecoin might fall before it finds solid ground. Given the expected significant price swings in the next days and weeks, all eyes will be on this famous meme coin as it tries to recuperate in the face of a difficult crypto climate. Featured image from DALL-E, chart from TradingView
If more buyers fail to step in as selling pressure increases, MOVE could drop to $0.57.
MicroStrategy Inc. co-founder and executive Chairman Michael Saylor says he is willing to advise Trump on cryptocurrency policy when the crypto advisory council is set. During the Dec. 18 episode of the Open Interest show on Bloomberg Television, Saylor voiced…