Public Keys

Public Keys is a weekly roundup from Decrypt that tracks key publicly traded crypto companies. This edition focuses on three major topics:

Strategy’s Timing Problem

Strategy, formerly MicroStrategy, has invested billions in Bitcoin, holding nearly $44 billion worth, which is 56% of its market cap of $78 billion. This year, the company spent $5.3 billion on Bitcoin. However, investors are skeptical about its timing strategy, as the company did not purchase during the recent Bitcoin dip, causing its stock premium to hit a 10-month low. On Friday, Strategy (NASDAQ: MSTR) closed at $287.18, down 5.6%.

Chip off the ol’ Block, Inc.

The ongoing trade wars have caused turbulence in financial markets, potentially affecting Chinese Bitcoin mining rig manufacturer Bitmain. This situation may benefit companies like Jack Dorsey’s Block, Inc. and Core Scientific, which are poised to offer alternatives. Core Scientific is currently delaying upgrades until Block’s new 3-nanometer chips are operational by late 2025. Block, traded on the NYSE under ticker XYZ, closed the week at $59.81, a slight gain of 0.33%.

Circle Marks Its Spot

Representatives from USDC issuer Circle met with the SEC’s Crypto Task Force, advocating for the non-applicability of securities laws on certain payment stablecoins. Circle previously aimed for a SPAC merger to go public but postponed it in 2022. Speculation about a 2024 IPO resurfaced after Circle moved its headquarters to New York, eyeing Wall Street’s prominence.

Other Keys

Bitcoin rewards firm Fold recently increased its BTC reserve by $41 million. Japan’s Metaplanet also saw a stock rise of 20% after adding $43 million to its Bitcoin treasury, valued at about $252 million.

Wall Street firm Rosenblatt initiated coverage of Coinbase with a buy rating and a $305 price target, suggesting that investors focus on strong crypto companies. Kraken, a San Francisco-based exchange, is also reportedly preparing for an IPO. Lastly, Nasdaq President Tal Cohen hinted at discussions for introducing 24-hour trading on Nasdaq, though it would be 24/5.

Edited by Guillermo Jimenez.