2023-11-02 18:13

Copyrighted Image by: Reuters. Fidelity's Jurrien Timmer recently compared Bitcoin to "exponential gold," suggesting its potential to act as a significant store of value akin to the precious metal. As per Timmer's observations, Bitcoin and gold share several similarities such as finite supply and resilience during periods of economic strain. In a statement made on X (previously known as Twitter), he classified Bitcoin as a "commodity currency," aspiring to be a hedge against monetary debasement. He drew parallels between the periods of inflation, negative real rates, or excessive money supply growth like the 1970s and 2000s when gold thrived, indicating that Bitcoin could follow a similar path. Despite Bitcoin's recent market downturn, Timmer sees potential for the cryptocurrency to follow a trajectory similar to Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) after the dot-com bubble. His "Bitcoin analogs" chart suggests an optimistic future for BTC if it mirrors past market cycles. If BTC follows the patterns of 2011 and 2013, it could reach around $700,000. A more conservative forecast based on the 2017 cycle suggests a BTC price between $200,000 and $300,000. Timmer further highlighted Bitcoin's censorship resistance, predetermined scarcity, and its appeal as an investment while offering a fresh perspective on the evolving cryptocurrency landscape. However, he urged investor prudence, cautioning that Bitcoin's growth may not always sync with broader macroeconomic trends. While emphasizing Bitcoin's potential to surpass gold's deflationary limitations and unwieldiness for daily transactions, Timmer reiterated its role as "aspirational money." His insights underline the evolving perceptions of Bitcoin in the financial world and its potential role in future economic landscapes. https://www.investing.com/news/cryptocurrency-news/bitcoin-likened-to-exponential-gold-suggests-fidelitys-timmer-93CH-3219837

2023-11-02 16:44

Copyrighted Image by: Reuters In a move to leverage the price volatility of Ether, ProShares launched the Short Ether Strategy ETF (NYSE:SETH) on Thursday. This ETF, which trades on NYSE’s Arca, is designed to streamline the process of shorting ETH and enable profits from Ether's price dynamics through traditional brokerage accounts, according to CEO Michael Sapir. SETH is unique in its approach to gain exposure via Ether futures contracts, a strategy consistently employed across ProShares' crypto ETFs lineup. Sapir emphasized that SETH simplifies acquiring short exposure to ether and allows investors to profit during both increases and decreases in ether's price. However, he also cautioned investors about the unique risks associated with these investments due to their volatility and unpredictability. The ETF reflects the inverse of the S&P CME Ether Futures Index's daily performance, aiming to benefit from Ether's price fluctuations. The strategy is similar to other ProShares' crypto-linked ETFs such as BITO, EETH, BETH, and BETE. However, Sapir also highlighted additional challenges faced by ProShares' actively managed ETFs. These include the usage of futures contracts, imperfect benchmark correlation, leverage, and market price variance. These factors can amplify volatility and negatively influence performance. Notably, SETH is expected to experience losses when ether futures' daily price rises. Despite the launch of SETH, interest in ether futures ETFs remains relatively subdued. The combined assets under management (AUM) for six recently launched ETH-based futures ETFs hover around $20 million. SETH joins ProShares' crypto ETF lineup, which includes BITO and BITI (launched when Bitcoin fell below $20,000), EETH, BETH, and BETE. https://www.investing.com/news/cryptocurrency-news/proshares-launches-short-ether-strategy-etf-to-leverage-ethers-price-volatility-93CH-3219743

2023-11-02 16:36

Coinbase (NASDAQ:COIN) Global, America's leading cryptocurrency exchange, is expected to report a quarterly loss of $0.54, according to recent predictions from Zacks. This forecast comes despite the company's demonstrated trend of improved earnings since its initial public offering (IPO) in 2021. Notably, the firm outperformed expectations with an earnings per share (EPS) surprise of 110% in May and a forecast beat by 46% last quarter. Investor confidence in Coinbase remains robust, even as the company faces an ongoing lawsuit from the Securities and Exchange Commission (SEC). The lawsuit alleges that Coinbase has been operating as an unregistered securities exchange. Yet, the share price has risen since the initiation of this legal tussle, potentially buoyed by recent legal victories within the broader cryptocurrency sector. Looking ahead, analysts are keenly awaiting Coinbase's forward guidance for indications of its future performance trajectory. A significant event on the horizon is the Bitcoin Halving slated for 2024. This event, which historically leads to a surge in Bitcoin's value due to a reduction in mining rewards, could serve as a bullish catalyst for Coinbase shares. In addition to these factors, Coinbase's position as the primary listed exchange for most Bitcoin ETF filings could prove highly profitable, particularly in light of the swift institutional adoption of cryptocurrency and potential approval of Bitcoin ETFs. Industry giants have entered the crypto space, suggesting a promising outlook for Coinbase. Despite recording losses, Coinbase's financial strategies and impressive cash reserves worth $5 billion have attracted investment from value investing titan Seth Klarman. This development could potentially draw more investors who have traditionally been cautious about engaging with the crypto industry. Although Coinbase has missed estimates in six out of ten quarters since its IPO, recent results indicate an upward trend with successive quarters surpassing expectations. As such, while the company is projected to post a loss in the upcoming quarter, the overall sentiment surrounding Coinbase appears to be one of optimism and confidence. InvestingPro Insights As we delve deeper into the financial nuances of Coinbase, InvestingPro provides some critical insights. The data indicates a market cap of 19.72B USD, with a P/E ratio of -15.03. The revenue as of Q2 2023 stood at 2580.23M USD, and the gross profit margin was 84.91%. InvestingPro Tips suggests a declining trend in earnings per share, which aligns with the projected loss for the upcoming quarter. The stock price movements have been volatile, with a significant price uptick over the last six months, despite the overall fall in price over the last five years. Interestingly, despite these fluctuations, analysts have revised their earnings upwards for the upcoming period. This could signal a shift in market sentiment, hinting at the potential for growth. These insights, combined with the additional 5 tips and data points available on InvestingPro, could prove invaluable for investors looking to navigate the dynamic landscape of cryptocurrency investments. https://www.investing.com/news/cryptocurrency-news/coinbase-projected-to-post-quarterly-loss-amid-strong-investor-confidence-93CH-3219737

2023-11-02 16:17

Copyrighted Image by: Reuters. MicroStrategy, the Tysons-based firm, has continued to expand its Bitcoin portfolio, purchasing an additional 155 BTC worth $5.3 million in October 2023, amidst a surge in Bitcoin's price to $35,400. This latest acquisition brings the company's total Bitcoin holdings to over 158,400, valued at roughly $5.6 billion. The firm's aggressive Bitcoin acquisition strategy, which began in Q2 2023 with the purchase of over 6,067 BTCs at $27,531 each, has resulted in a significant paper gain of $900 million. Despite posting a net loss of $143.4 million for the third quarter due to digital asset impairment losses and income taxes, the company maintains its commitment to acquiring and holding Bitcoin. MicroStrategy's CFO Andrew Kang and CEO Phong Le have expressed optimism about increased institutional adoption of Bitcoin and the potential impact of spot Bitcoin ETFs on market dynamics. Founder and chairman Michael Saylor continues to regard Bitcoin as a more reliable store of value than gold, a viewpoint he has held since 2022. In addition to its cryptocurrency investments, MicroStrategy's business intelligence (BI) operations have also seen positive developments. Despite a net loss of $27 million during the same period last year, the company reported a 3% year-over-year increase in total revenues to $129.5 million. This growth is reflected in a 16% rise in software licenses and a 28% increase in subscription services, indicating strong confidence in the company's artificial intelligence-integrated business analytics products. Following these announcements, MicroStrategy's stock price rose to $438. The firm's strategic focus on both its BI business and Bitcoin investments appears to be paying off as it navigates through dynamic market conditions. InvestingPro Insights The InvestingPro real-time data and tips offer valuable insights into MicroStrategy's performance and potential. With a market cap of $6.12 billion and a P/E ratio of 56.58, the company has shown impressive gross profit margins of 78.5% in the last twelve months as of Q3 2023. InvestingPro data also reveals a significant revenue growth of 3.27% in Q3 2023, indicating a strong financial performance. Moreover, the company's stock has seen a high return over the last year, with a total return of 71.88% as of the end of 2023. InvestingPro tips highlight that MicroStrategy is trading at a low P/E ratio relative to its near-term earnings growth. This suggests that the company's shares could be undervalued, offering potential for investors. However, it's worth noting that the company's stock price movements are quite volatile, which may result in higher risk. In addition, the company's short-term obligations exceed its liquid assets, indicating potential liquidity risks. Yet, analysts predict that the company will be profitable this year, which could offset these risks. For more in-depth analysis and additional tips, consider checking out the InvestingPro platform, which offers comprehensive insights into various companies' performance metrics. https://www.investing.com/news/cryptocurrency-news/microstrategy-boosts-bitcoin-holdings-amid-thirdquarter-earnings-report-93CH-3219723

2023-11-02 14:51

Copyrighted Image by: Reuters Northern Data AG (ETR:NB2), a prominent Bitcoin miner in Europe, has secured a $610 million unsecured debt financing from a firm under the Tether Group. The loan, set to mature in 2030, is aimed at bolstering Northern Data's three main business lines: Taiga Cloud, Ardent Data Centers, and Peak Mining. The funding will primarily be directed towards enhancing the AI capabilities of Taiga Cloud through the procurement of advanced hardware. It will also support the growth of Ardent Data Centers and escalate Bitcoin mining operations via Peak Mining using liquid-cooling mining technology. This expansion initiative comes in the wake of advancements in ASIC technology that have significantly augmented crypto mining efficiency while reducing environmental impact. ASICRUN's innovative models, AR1, AR2, and EliteAR miners, with their superior hash rates and energy efficiency, are leading this technological progression. Under current market conditions, these miners can generate substantial revenue in Bitcoin, Litecoin, and Dash. Tether Group's involvement with Northern Data dates back to September when it acquired a stake in the company and ventured into AI. As of its Q3 attestation report, Tether held total reserves of $86.4 billion against $83.2 billion liabilities and reported $3.2 billion excess reserves. The issuer of USDT, Tether currently has a market capitalization of $84.9 billion according to CoinMarketCap. The substantial loan offered to Northern Data is expected to significantly enhance the company's operations and influence its standing as a leading Bitcoin miner in Europe. https://www.investing.com/news/cryptocurrency-news/northern-data-secures-610-million-financing-from-tether-group-for-expansion-93CH-3219631

2023-11-02 13:24

Copyrighted Image by: Reuters. As Bitcoin's next 'halving' event looms, market participants find themselves embroiled in a heated debate about its potential impact on the digital currency's value. This phenomenon, which periodically changes the rate of Bitcoin token creation, has been a consistent source of intrigue and uncertainty for observers and analysts alike. The halving event is an integral part of Bitcoin's unique coding structure. It systematically adjusts the token creation rate, a feature that often triggers sudden price movements. This digital currency, known for its volatility and detachment from the real economy, can see millions in value wiped out in an instant due to these abrupt reversals. Satoshi Nakamoto, the pseudonymous creator of Bitcoin, ingeniously tied coin creation to 'block rewards'. These rewards are earned by miners through complex calculations designed to prevent counterfeiting. Miners compete for these block rewards by verifying transactions on the blockchain - a public digital ledger. The unpredictable nature of Bitcoin, coupled with its disconnection from traditional economic indicators, frequently perplexes market observers. The upcoming halving event has only intensified these debates, with Bitcoin enthusiasts and skeptics alike pondering its prospective impact on the currency's value. https://www.investing.com/news/cryptocurrency-news/bitcoins-halving-event-stirs-market-debates-93CH-3219476