Simply put
- MicroStrategy’s Bitcoin holdings, valued at around $70 billion, are being distributed among nine custodians, which include companies like Coinbase, Bitgo, and Fidelity. However, the specific details of this distribution remain under wraps due to SEC Rule 83.
- This week, both Coinbase and MicroStrategy hit stock price records, largely driven by a surge in the crypto market. Nevertheless, MicroStrategy seems to be pulling back while Coinbase continues to gain momentum.
- A number of companies have formed what could be termed Crypto Treasuries. For instance, BitOrigin secured $500 million through Dogecoin, Sharplink’s valuation skyrocketed to $6 billion with Ethereum backing, and e-bike manufacturer Volcon plans to raise $500 million in Bitcoin.
Public keys are weekly summaries that track significant publicly traded crypto companies.
This week saw record stock prices for both Coinbase and MicroStrategy, as well as actions from other firms entrenching themselves in the Crypto Treasury space. It’s still unclear exactly who is managing the Bitcoin strategy.
A short list
There’s no publicly available list detailing custodians for MicroStrategy’s Bitcoin. Yet, there’s reasonable speculation that the SEC is aware of the particulars.
The overall strategy has been articulated in our public declarations, and I’ll compile a brief list of potential custodians.
As for the SEC, they’ve inquired about who would serve as a custodian for the Bitcoin, implying concern regarding the BTC held at Silvergate. MicroStrategy did provide a response, but it’s been protected from public view due to SEC Rule 83. This narrows the list down to nine entities: Bitgo, Coinbase, GMO-Z.com, Faithful, Bakkt, Gemini, Nydig, Pax, and Standard Custody & Trust Company.
It’s worth noting that the strategy hasn’t addressed inquiries from the media regarding this issue.
Coins and MSTR Records
Coinbase and MicroStrategy both shattered record highs this week, likely buoyed by an influx of investment into the crypto market.
Analysts attribute this rise to increased trading volume, particularly related to ETFs, and a fresh wave of custody trading, propelling Coinbase to multiple all-time highs. By the end of the week, the company reached a peak closing price of $419.78 after hitting a daily high of $444.65.
This notable increase followed a “buy” rating from Argus Research, which set a price target of $400, and a reiteration of buy ratings from Rosenblatt.
Meanwhile, MicroStrategy’s Michael Saylor is proudly maintaining his position as a Bitcoin holder, with total holdings now at 601,550 BTC. However, MicroStrategy has not been cashing in on the profits.
On Friday, the picture changed for MicroStrategy, as its share price dipped over 6%. Could this be linked to recent remarks from critic Jim Cramer? He discussed MicroStrategy during an appearance on CNBC, although his comments left manyfeeling a bit ambiguous.
Cramer mentioned that someone had approached him about a business opportunity related to one of the cryptocurrencies, but he declined the offer.
“I felt somewhat like JP Morgan’s CEO Jamie Dimon,” he said, adding that he had some reservations about it.
Important Bitcoin, Ethereum, and Dogecoin
It seems hard to avoid news about new Crypto Treasury companies or existing firms expanding their financial resources. However, the market response isn’t always as explosive as one might expect. This week was no different.
Bitcoin mining company Origin started with $500 million, while Dogecoin’s stock prices surged.
The miner with the BTog ticker struggled to maintain its gains, closing Friday still trading at $0.78.
On the Ethereum front, Sharplink doubled its valuation this week, garnering $48 million on Monday and an impressive $225 million on Tuesday. The company later informed the SEC about plans to raise between $1 billion and $6 billion to acquire more ETH.
Sharplink’s stock (SBET ticker) initially rose 16% for the week, but it experienced a 20% decline over the recent days, finishing at $28.98 per share.
In addition, e-bike maker Volcon’s shares soared by 135% after announcing plans to raise $500 million for Bitcoin purchases. Yet, this optimism didn’t last, as shares fell nearly 21% on Friday, closing at $17.11.
Other keys
It’s clear that no one is playing it safe. Grayscale, a prominent crypto asset manager, has indicated its intentions by filing preliminary documents that could pave the way for an IPO, despite currently being in draft mode. This move comes as the company looks to revive interest in the Grayscale Bitcoin Trust.
High stakes are at play too. You might have heard chatter about “ETH SZN.” There are rumors swirling in the altcoin circles and discussions about XRP’s growing community. On Wall Street, BlackRock’s iShares Ethereum Trust seems to hold around $8 billion worth of ETH. However, the SEC has stated it won’t be issuing a ruling on Ethereum ETF staking until October.
