Coinbase Opts out of IPO Routine, Chooses Popular Direct Listing Route
The San Francisco-based cryptocurrency exchange Coinbase recently announced the company plans to do a direct listing, as opposed to following the initial public offering (IPO) route. The decision means that Coinbase can float its shares on an exchange without hiring a financial institution to underwrite the settlements.
Coinbase to Skip IPO Process, Shoots for a Direct Listing
Just recently people familiar with the matter received a tip that the exchange giant Coinbase had plans to sell shares privately ahead of the IPO. In mid-December, Coinbase revealed the confidential filing of an S-1 initial public offering with the U.S. Securities and Exchange Commission.
However, on January 28, 2021, Coinbase announced a proposed direct listing as opposed to the IPO that was initially planned. For instance, a few weeks prior rumors spread that Goldman Sachs would be the exchange’s underwriter.
On Thursday Coinbase wrote:
Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”).
Crypto Proponents See ‘Strong Market Demand’ for Coinbase Shares
Of course, the crypto community started speculating on why Coinbase decided to opt for a direct listing instead of an IPO. James Todaro, MD, partner at Greymatter Capital explained a few reasons why he thinks Coinbase chose this path.
“Possible key reasons,” Todaro tweeted. “Strong market demand/no help needed generating liquidity, [and] no lock-up for early investors (can sell shares immediately). I think early investors see imminent market euphoria,” Todaro added.
Moreover, a direct listing seems to be the popular route these days to some companies rather than IPO. The popular video game company Roblox opted to choose a direct listing and several others are choosing to debut on public equity markets.
Coinbase will be able to jump over the components of an IPO by floating shares without any intermediaries. The San Francisco-based crypto company can sell shares directly to the public without dealing with marketing new equity and the need for investment banks to underwrite transactions.
What do you think about Coinbase choosing to go with a direct listing rather than IPO? Let us know what you think about this subject in the comments section below.
- Published in Uncategorized
Ukraine to Set up a Large-Scale Crypto Mining Data Center in a Nuclear Power Plant
Ukraine’s government-owned nuclear power plant picked a firm to build a massive data center in Rivne for cryptocurrency mining operations. After a bidding process, Energoatom chose Kyiv Energy Construction Company to handle the nuclear plant crypto mining project.
Nuclear Power Plant Operator Expects to Launch the Data Center in 2022
According to official documents, the data center will be based in the Rivne nuclear power plant, after the construction firm got 8.92 million Hryvnia ($317,620) in funding. The only competitor in the bidding was Ukrenergobudproek. However, they allegedly made an expensive offer, said the regional news outlet Forklog.
The Kyiv Energy Construction Company expects to finish the data center building by August 31, 2022. Per the announcement, the contractor is required to send the documentation that details the whole process. It includes “host state registers, electronic archives, and computing facilities.”
In terms of technical details, the nuclear power plant has a capacity of 2,657 megawatts, and it was built in the late 1970s. Also, the operations of the state-owned nuclear facilities started at the beginning of 1980.
In October 2020, Energoatom also signed a memorandum with a subsidiary of crypto mining giant Bitfury. With the new data center, local media outlets believe Bitfury miners could move their operations into the power plant’s facilities.
Ukraine’s Interest Towards Building Crypto Mining Data Centers in Nuclear Plants
The deal between Energoatom and Kyiv Energy Construction Company is not a surprising move. In fact, the Ministry of Energy of Ukraine asked Energoatom in May 2020 to conduct research to assess crypto mining’s feasibility at their nuclear plants.
As an anecdotal fact in terms of crypto mining in Ukrainian nuclear plants, the nation’s Security Service found illegal crypto mining equipment in a nuclear power plant in 2019.
The installation’s illegal mining rigs were found in the Southern region of Ukraine. Moreover, the investigations determined that such illegal equipment breached a “state secret.”
What do you think about this announcement of building crypto mining data centers in nuclear power plants? Let us know in the comments section below.
- Published in Uncategorized
Coinbase Opts out of IPO Routine, Chooses Popular Direct Listing Route
The San Francisco-based cryptocurrency exchange Coinbase recently announced the company plans to do a direct listing, as opposed to following the initial public offering (IPO) route. The decision means that Coinbase can float its shares on an exchange without hiring a financial institution to underwrite the settlements.
Coinbase to Skip IPO Process, Shoots for a Direct Listing
Just recently people familiar with the matter received a tip that the exchange giant Coinbase had plans to sell shares privately ahead of the IPO. In mid-December, Coinbase revealed the confidential filing of an S-1 initial public offering with the U.S. Securities and Exchange Commission.
However, on January 28, 2021, Coinbase announced a proposed direct listing as opposed to the IPO that was initially planned. For instance, a few weeks prior rumors spread that Goldman Sachs would be the exchange’s underwriter.
On Thursday Coinbase wrote:
Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”).
Crypto Proponents See ‘Strong Market Demand’ for Coinbase Shares
Of course, the crypto community started speculating on why Coinbase decided to opt for a direct listing instead of an IPO. James Todaro, MD, partner at Greymatter Capital explained a few reasons why he thinks Coinbase chose this path.
“Possible key reasons,” Todaro tweeted. “Strong market demand/no help needed generating liquidity, [and] no lock-up for early investors (can sell shares immediately). I think early investors see imminent market euphoria,” Todaro added.
Moreover, a direct listing seems to be the popular route these days to some companies rather than IPO. The popular video game company Roblox opted to choose a direct listing and several others are choosing to debut on public equity markets.
Coinbase will be able to jump over the components of an IPO by floating shares without any intermediaries. The San Francisco-based crypto company can sell shares directly to the public without dealing with marketing new equity and the need for investment banks to underwrite transactions.
What do you think about Coinbase choosing to go with a direct listing rather than IPO? Let us know what you think about this subject in the comments section below.
- Published in Uncategorized
Ukraine to Set up a Large-Scale Crypto Mining Data Center in a Nuclear Power Plant
Ukraine’s government-owned nuclear power plant picked a firm to build a massive data center in Rivne for cryptocurrency mining operations. After a bidding process, Energoatom chose Kyiv Energy Construction Company to handle the nuclear plant crypto mining project.
Nuclear Power Plant Operator Expects to Launch the Data Center in 2022
According to official documents, the data center will be based in the Rivne nuclear power plant, after the construction firm got 8.92 million Hryvnia ($317,620) in funding. The only competitor in the bidding was Ukrenergobudproek. However, they allegedly made an expensive offer, said the regional news outlet Forklog.
The Kyiv Energy Construction Company expects to finish the data center building by August 31, 2022. Per the announcement, the contractor is required to send the documentation that details the whole process. It includes “host state registers, electronic archives, and computing facilities.”
In terms of technical details, the nuclear power plant has a capacity of 2,657 megawatts, and it was built in the late 1970s. Also, the operations of the state-owned nuclear facilities started at the beginning of 1980.
In October 2020, Energoatom also signed a memorandum with a subsidiary of crypto mining giant Bitfury. With the new data center, local media outlets believe Bitfury miners could move their operations into the power plant’s facilities.
Ukraine’s Interest Towards Building Crypto Mining Data Centers in Nuclear Plants
The deal between Energoatom and Kyiv Energy Construction Company is not a surprising move. In fact, the Ministry of Energy of Ukraine asked Energoatom in May 2020 to conduct research to assess crypto mining’s feasibility at their nuclear plants.
As an anecdotal fact in terms of crypto mining in Ukrainian nuclear plants, the nation’s Security Service found illegal crypto mining equipment in a nuclear power plant in 2019.
The installation’s illegal mining rigs were found in the Southern region of Ukraine. Moreover, the investigations determined that such illegal equipment breached a “state secret.”
What do you think about this announcement of building crypto mining data centers in nuclear power plants? Let us know in the comments section below.
- Published in Uncategorized
Dogecoin Price Skyrockets 325%, Crypto Fueled by Elon Tweets and Redditors
The infamous meme token dogecoin has been skyrocketing in value rising more than 325.21% during the last 24 hours. After remaining below a U.S. cent for years, the humorous crypto asset is now exchanging hands for $0.05 per unit. The reason behind the big dogecoin price spike is similar to the recent Gamestop/Wallstreetbets story as a Reddit group called Satoshistreetbets has been behind the recent pump.
In April 2019, the Tesla founder Elon Musk said dogecoin (DOGE) was his “fav cryptocurrency.” In June 2020, day traders from Tiktok decided to encourage people to buy dogecoin in order to get the price per unit up to a dollar. The dollar price per DOGE never came to fruition, but the crypto asset saw some significant gains from the pump. Then during the first week of January 2021, news.Bitcoin.com reported on dogecoin gathering well over 500% gains during the year.
Now the K-9 crypto asset is making headlines again as the price has been surging during the last 24 hours. DOGE is currently swapping for 5 U.S. cents after trading below a penny for quite some time. The digital asset has a whopping $4.83 billion in global trade volume today and the asset is well above the all-time high (ATH) it captured in 2017.
Weekly stats show dogecoin is up over 585% and during the last 30 days DOGE is up over 1,150%. Against bitcoin (BTC), dogecoin has gained a colossal 871% against the leading crypto asset. Moreover, during the last 12 months, dogecoin has jumped in value by over 2,270%.
Okay I caved and bought the dog stocks lmaoooooo
— Mia K. (@miakhalifa) January 29, 2021
Rumor has it the dogecoin (DOGE) pump was started by the Redditors from r/satoshistreetbets who have been following the recent action spurred by the Gamestop/Wallstreetbets fiasco.
One particular thread talks about holding dogecoin in order to get the price per unit to $10. The Reddit post which is on the front page has over 11,000 upvotes has a lot of participants and people have been discussing the best exchanges to utilize.
Then on Thursday, the popular Elon Musk decided to tweet a meme of a magazine called “Dogue,” which is a play on the “Vogue” magazine title. Moreover, the Onlyfans star, Mia Khalifa, tweeted about the dogecoin madness on Twitter to her 3.4 million followers.
— Elon Musk (@elonmusk) January 28, 2021
The tweet from Musk got the dogecoin crowd excited and one individual tweeted a meme that featured Musk, a bunch of cartoon Doges, and said: “DOGE is the answer.” Dogecoin is also one of the only older coins, besides BTC and ETH, that has managed to surpass its ATH from 2017, while many other older crypto assets have yet to do so.
Dogecoin is over seven years old and was developed by Jackson Palmer and the programmer Billy Markus. The digital currency’s existence has always been to exist for fun, promote laughter, and reach a broader demographic. It has managed to do so and stay in the limelight, as the asset is now holding the 11th position among the top crypto market caps.
The cryptocurrency featuring the likeness of the Shiba Inu dog has 127.7 billion DOGE in circulation. Since the recent price spike, crypto supporters have been hunting for their old dogecoin wallets as the asset is far more valuable today.
What do you think about dogecoin’s meteoric rise during the last year and the gains seen over the last week? Let us know what you think about this subject in the comments section below.
- Published in Uncategorized
Guggenheim Investments’ Scott Minerd Says There Is Insufficient Institutional Support to Sustain BTC Prices Above $30K
As bitcoin struggles to kickstart yet another record-breaking rally, Scott Minerd, the CIO at Guggenheim Investments says this could be down to the inadequate institutional support. According to Minerd’s assessment, this lack of sufficient institutional investor support means it will be hard for bitcoin to trade above $30,000.
The CIO, however, thinks the viability of the crypto as “an asset class is still very likely.” In a short video, Minerd chronicles bitcoin’s rise and how the crypto initially did not have a large enough market capitalization to attract institutions.
However, after the crypto rose to $10,000, perceptions changed. The CIO explains:
When we had bitcoin at $10,000, it was pretty easy to see that there was a clear path to $20,000.Once it went past $20,000 you could definitely see based on technical work how you could get to $35,000 or even higher.
Minerd, who has previously predicted a maximum price of $400,000 for the BTC, says the current investor base is not big enough to support a valuation above $30,000.
Not Everyone Agrees
However, not everyone agrees that bitcoin, which grew by more than 300% in 2020, will remain stuck at current prices. Michael Geiger, the CEO at a financial brokerage firm Libertex, disagrees with Minerd’s view. Geiger explains to News.bitcoin.com that “an overextension does not mean that bitcoin would permanently stay below the figure.” The CEO adds:
Eventually, bitcoin would move above the figure even in the lower part of the logarithmic regression band, provided that the asset still holds any meaningful value.
Meanwhile, despite Minerd’s comments, bitcoin has dropped below $30,000 only twice since January 1, 2020. At the time of writing, the crypto appears to have resumed its rally after it went past $37k handle for the first time since January 20.
Do you agree with Minerd’s prediction that BTC will struggle to stay above $30,000? You can tell us what you think in the comments section below.
- Published in Uncategorized
Bitcoin Miners Strain Under Semiconductor Supply Crunch, Second-Hand Mining Rig Prices Soar
Bitcoin mining rig manufacturers are dealing with a semiconductor supply crunch according to regional reports stemming from China. There’s been a global semiconductor supply shortage and it’s affecting nearly every type of business in the supply chain that manufactures cars, PCs, laptops, smartphones, and cryptocurrency mining devices. Moreover, the recent shortage has invoked the demand for second-hand and older generation mining rigs.
Semiconductor Shortage Complicates Mining Rig Manufacturing
Currently, the world is dealing with a semiconductor supply crunch which has been spurred by the aftermath of Covid-19 and the lockdowns. Automobile makers, PC manufacturers, smartphone production, and almost every electronics manufacturer under the sun is dealing with this issue. For instance, reports detail that auto giants like Toyota Motors, Nissan, Ford, Volkswagen, and more have been chomping at the bit to obtain microchips from suppliers like TSMC. On January 27, 2021, the financial reporter from China, Iyke Aru, reported on how the microchip supply shortage is “taking a toll on Chinese bitcoin miners.”
“The unique case of mining is complicated as a result of the coincidence with the increasing demand for Bitcoins and the associated expansion of the mining industry.” Aru details. Moreover, Aru also noted that because of the shortage “Chinese cryptocurrency miners are already scrambling for second-hand machines just to keep up with industry requirements.”
Second-Hand Machines, Older Generation Rigs, and ‘Too Many People Going for the Same Foundries’
Meanwhile, manufacturers and industry executives are hoping for other solutions to appear. During the second week of January, Nvidia revealed some cheaper types of semiconductors for computers that could possibly help the supply crunch, according to reports. Patrick Moorhead, principal analyst at Moor Insights and Strategy told Marketwatch in an interview that the shortage has impeded businesses working with semiconductor foundries. “There is not enough capacity at TSMC and at Samsung,” Moorhead explained. “There are too many people going for the same foundries.”
The scramble for second hand and older generation mining rigs has not just affected China but second markets in Europe and the U.S. have seen increased prices. For example on Ebay, there are hundreds of results for pre-owned S9s and even people selling bulk packages as well. Mining rig prices can be 2x to even 10x higher than what they were before the crypto economy’s bull run. The quantity of second-hand mining machines is far larger when it comes to older generation mining rigs, as new releases are much harder to obtain. There are far fewer listings on secondary markets and direct from the manufacturer deliveries are sold out until spring 2021.
What do you think about the semiconductor shortage taking a toll on the bitcoin mining industry? Let us know what you think about this subject in the comments section below.
- Published in Uncategorized
Coinbase Opts out of IPO Routine, Chooses Popular Direct Listing Route
The San Francisco-based cryptocurrency exchange Coinbase recently announced the company plans to do a direct listing, as opposed to following the initial public offering (IPO) route. The decision means that Coinbase can float its shares on an exchange without hiring a financial institution to underwrite the settlements.
Coinbase to Skip IPO Process, Shoots for a Direct Listing
Just recently people familiar with the matter received a tip that the exchange giant Coinbase had plans to sell shares privately ahead of the IPO. In mid-December, Coinbase revealed the confidential filing of an S-1 initial public offering with the U.S. Securities and Exchange Commission.
However, on January 28, 2021, Coinbase announced a proposed direct listing as opposed to the IPO that was initially planned. For instance, a few weeks prior rumors spread that Goldman Sachs would be the exchange’s underwriter.
On Thursday Coinbase wrote:
Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”).
Crypto Proponents See ‘Strong Market Demand’ for Coinbase Shares
Of course, the crypto community started speculating on why Coinbase decided to opt for a direct listing instead of an IPO. James Todaro, MD, partner at Greymatter Capital explained a few reasons why he thinks Coinbase chose this path.
“Possible key reasons,” Todaro tweeted. “Strong market demand/no help needed generating liquidity, [and] no lock-up for early investors (can sell shares immediately). I think early investors see imminent market euphoria,” Todaro added.
Moreover, a direct listing seems to be the popular route these days to some companies rather than IPO. The popular video game company Roblox opted to choose a direct listing and several others are choosing to debut on public equity markets.
Coinbase will be able to jump over the components of an IPO by floating shares without any intermediaries. The San Francisco-based crypto company can sell shares directly to the public without dealing with marketing new equity and the need for investment banks to underwrite transactions.
What do you think about Coinbase choosing to go with a direct listing rather than IPO? Let us know what you think about this subject in the comments section below.
- Published in Uncategorized
$180 Million Bitcoin Investment Fund IPOs on Canadian Stock Exchange
Canadian investment management firm Ninepoint has completed an initial public offering (IPO) of its bitcoin fund on the Toronto stock exchange. The company says the offering is the largest IPO of a bitcoin investment fund in Canada to date.
- Ninepoint Partners announced Wednesday that its Bitcoin Trust has completed an initial public offering (IPO) of CAD$230 million ($180 million).
- “It is the largest initial public offering of a bitcoin investment fund in Canada to date,” said John Wilson, Ninepoint’s co-CEO and managing partner.
- The fund’s Class A units are now trading on the Toronto Stock Exchange in both U.S. dollars and Canadian dollars under the symbols BITC.U and BITC.UN respectively.
- The fund seeks to provide investors with exposure to bitcoin “through an institutional-quality platform that is cost-efficient” to them and “to provide a secure, simpler and exchange-traded investment alternative for buying and holding bitcoin.” The fund invests in BTC directly.
- The fund’s bitcoin will be valued based on the MVIS Cryptocompare Institutional Bitcoin Index, which is maintained by MV Index Solutions GmbH (MVIS) or a successor or alternative institutional-quality index. Ninepoint will act as the fund’s trustee and manager
- MVIS is a wholly-owned subsidiary of Van Eck Associates Corp., which recently filed applications to list and trade bitcoin exchange-traded funds with the U.S. Securities and Exchange Commission (SEC).
Do you think more bitcoin funds should trade on stock exchanges? Let us know in the comments section below.
- Published in Uncategorized
Ripple and CEO Brad Garlinghouse Face Another Lawsuit Over XRP Crypto Being a Security
Another class-action lawsuit has been filed against Ripple Labs and CEO Brad Garlinghouse. This lawsuit follows the one filed by the U.S. Securities and Exchange Commission (SEC) alleging that the defendants sold XRP, which it considers unregistered security, for over $1.38 billion.
- The lawsuit, filed Monday in a Florida district court alleges that the “sale of XRP cryptocurrency tokens to Florida residents” violates Florida securities laws.
- The suit names Ripple Lab Inc., XRP II LLC, and Garlinghouse as the defendants. They have allegedly sold “millions of dollars (or more)” in XRP tokens since 2013 without registering either with federal or Florida authorities.
- Recently, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, Garlinghouse, and co-founder Christian Larsen alleging that they sold over 14.6 billion units of XRP for at least $1.38 billion. After the SEC’s lawsuit, several major cryptocurrency exchanges delisted XRP, including Coinbase, Binance, Okcoin, and Blockchain.com. Ripple has insisted that XRP is not a security and plans to fight the SEC charges.
- The plaintiff, Tyler Toomey, said he purchased 135 XRP on or around Nov. 24, 2020, for $97.80 and then sold the coins at a loss. The lawsuit states that the “plaintiff sustained a loss of $48.56, or just over 50% of his initial investment.)” Although the plaintiff’s own loss is small, he “seeks to represent a class defined as all persons or entities in the State of Florida who purchased XRP.”
- Toomey is seeking monetary compensation including “reasonable” attorney’s fees, expenses, and costs of the suit, on his own behalf and on behalf of other class members.
What do you think about this new lawsuit against Ripple over XRP? Let us know in the comments section below.
- Published in Uncategorized