You are about to leave the website of SDM Inc. ("SDM") and will be redirected to the website of SDM Financial Inc. ("SDM Financial"), a US affiliate of SDM providing crypto derivatives trading services.
Please be aware that SDM Financial's services are not intended for, and should not be used by, residents of Canada.
By clicking on the link to SDM Financial's website, you acknowledge and agree that: You are not a Canadian resident.
SDM Financial is not registered with any regulatory authority in Canada and is strictly prohibited from entering, or otherwise engaging in, any transactions with Canadian residents.
Non-Canadian residents who deal with SDM Financial do so at their own risk, and SDM will not be held liable for any losses or damages incurred as a result.
By clicking 'I Accept' below, you confirm that you have read, understand, and agree to the above . If you do not agree, please select 'I Decline' and you will be redirected back to SDM's website.
MicroStrategy Acquires 12,000 More BTC With Convertible Senior Notes Proceeds
MicroStrategy has expanded its Bitcoin holdings by purchasing an additional 12,000 BTC, leveraging the $782 million generated from its latest convertible debt offering. The company, under the leadership of Bitcoin proponent Michael Saylor, now controls 205,000 BTC, valued at approximately $14.7 billion. This recent acquisition, made at an average price of about $68,477 per coin, was financed through the proceeds of the debt offering and supplementary cash resources, amounting to a total investment of $821.7 million. Initially aiming to raise $600 million, MicroStrategy increased its funding target to $700 million for this purpose. Following the news of this acquisition and Bitcoin’s surge to a new all-time high of over $72,000, MicroStrategy's stock price rose by nearly 10% to $1,560 in pre-market trading.
London Stock Exchange to Welcome Bitcoin and Ether ETNs, Aiming for Q2 Launch
The London Stock Exchange (LSE) is set to open applications for the admission of Bitcoin and Ether exchange-traded notes (ETNs) starting in the second quarter of this year, aiming to cater to professional investors. This decision aligns with the UK's Financial Conduct Authority's stance of not opposing Recognized Investment Exchanges' efforts to introduce a listed market segment for cryptocurrency-backed ETNs. ETNs, which are debt securities offering exposure to underlying assets, enable investors to engage in securities tracking crypto assets during London's trading hours. The LSE's initiative, encouraged by the significant traction U.S. spot Bitcoin ETFs have gained since their inception in January, marks a significant step in integrating cryptocurrencies into mainstream financial markets. The exact launch date for these Crypto ETNs is yet to be confirmed, and the LSE advises prospective issuers to engage early to avoid admission delays.
Optimism Foundation to Sell $89 Million Worth of Governance Tokens in Private Sale
The Optimism Foundation has announced a private sale of approximately 19.5 million of its governance tokens, valued at over $89 million, without disclosing the buyer or sale terms. These tokens, part of the Foundation's original working budget and deriving from the unallocated portion of the OP token treasury, will be locked up for two years but can still be delegated for governance votes. This sale follows a previous transaction in September 2023, where 116 million OP tokens were sold for over $160 million. The sale has sparked criticism within the Ethereum community for its lack of transparency, with notable figures expressing their discontent on social media. Despite mixed reactions, Optimism's OP token price has seen a nearly 3% increase over the last 24 hours.
Trading Desk Insights
Bitcoin surged on Monday, reaching a new all-time high above $72,000 following the announcement by the British financial watchdog permitting exchanges to list cryptocurrency-linked exchange-traded products (ETPs) for the first time. The positive momentum of BTC Spot ETFs continues to drive price action. BTC solidifies its position among the top assets by market cap, now valued at $1.4 trillion, surpassing silver to claim the title of the world's eighth most valuable asset. With a valuation just shy of $1.7 trillion, the next target for BTC's ascent is Google parent Alphabet, currently ranked seventh.
Reviewing the ETF landscape, the first two months have showcased impressive growth, with ten bitcoin ETFs amassing over $55 billion in assets and $110 billion in trading volume. Notably, the nine BTC ETFs excluding GBTC have surpassed GBTC in terms of holdings, while IBIT has overtaken MSTR. This progress within just eight weeks is commendable.
In regulatory news, the Financial Conduct Authority announced its non-objection to recognized investment exchanges creating a U.K.-listed market segment for crypto-backed exchange-traded notes (ETNs), accessible exclusively to professional investors. Retail investors are barred from purchasing crypto-linked ETNs or derivatives due to perceived high risk.
Digital asset investment products experienced record weekly inflows of $2.7 billion, bringing year-to-date inflows to $10.3 billion, nearing the 2021 record of $10.6 billion.
MicroStrategy increased its BTC holdings by acquiring an additional 12,000 BTC for approximately $821.7 million.
Furthermore, Deribit is set to launch options on three altcoins—Solana, Ripple, and Polygon—using USDC as the settlement currency for all new altcoin option markets.
In the U.S. stock market, Monday witnessed a decline, extending losses from the previous week as investors anticipated fresh inflation data. Nvidia retreated by around 1%, while Meta faced challenges, with the Facebook parent company tumbling over 4%.
Traders are gearing up for the release of February's consumer and producer price indexes, scheduled for Tuesday and Thursday, respectively. These reports are crucial ahead of the Federal Reserve's March policy meeting.
Crypto Charts
Macro Charts
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.
Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
Contact Us
Sign up to receive more exclusive market coverage:
.png)
.jpg)
.png)
.png)
.png)
.jpeg)
