BlockByte Weekly: Is Alt Coin Season Already Over?

Hi Reader,

Thanks for reading The BlockByte Weekly, where we summarise the key updates in crypto over the last week and provide our perspective on what you need to know as an investor.
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Executive Summary​
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• Altcoins struggle as investors question whether 'alt-season' will come, meanwhile bitcoin adoption continues
• MicroStrategy raises $563m to buy more bitcoin, they hold $50B worth of bitcoin currently and plan to raise a further $42B over the next 3 years
• Tether, the largest USD stablecoin will be delisted by Kraken in Europe to comply with local regulations

Market Update

Altcoins struggle as investors question whether 'alt-season' will come, meanwhile bitcoin adoption continues

The overall altcoin market is down -4.5% this week and finds itself ~17% off the peaks seen in December. Of the major blockchains, Solana has been one of the worst performers this week, declining by over 16%. Ethereum fell 5.7% for the week with XRP falling 7.2%. Bitcoin was down 4% for the week.

From our perspective, bitcoin continues to be the dominant driving force at this stage of the market with over 15 states having independently files for a strategic bitcoin reserve. Arizona and Utah appear to be the closest to having these reserves signed into law.​
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MicroStrategy raises $563m to buy more bitcoin, they hold $50B worth of bitcoin currently and plan to raise a further $42B over the next 3 years

MicroStrategy has raised another $563m following the sale of preferred stock which will carry an 8% dividend and a $1,000 coversion price. This means that in addition to getting paid a coupon, if the share price rises above $1,000, investors will be able to convert their preferred shares into common stock, meaning that in addition to the 8% coupon they also receive the potential for equity upside. So far, MicroStrategy plans to raise $42B across debt and equity over the next 3 years to acquire more bitcoin, currently holding 471,107 bitcoin worth ~$50B.

Tether, the largest USD stablecoin will be delisted by Kraken in Europe to comply with local regulation

Cryptocurrency exchange Kraken is delisting five stablecoins, including major players like Tether's USDT and PayPal USD, from its European operations by March 31, 2024, to comply with the EU's Markets in Crypto-Assets Regulation (MiCA). The exchange will implement a phased removal beginning February 13 with margin trading restrictions, followed by a shift to sell-only mode on February 27, and culminating in a complete trading halt on March 24, affecting all European Economic Area users.
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For A Confidential Discussion​
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Feel free to reach out to me anytime to discuss how we can support you on your digital asset journey.
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Until next week,
James

James Brannan
Chief Executive Officer
BlockByte Capital
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(+61) 412 393 634
​james@blockbyte.com.au​
​https://blockbyte.com.au/​

BlockByte does not provide financial advice. We provide execution support, research and insured custody for investing in digital assets. Reach out to our team to discuss how we can help.

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