Fund manager and activist investor Eric Jackson is set to head a crypto treasury firm following a reverse merger with pet wellness company SRx Health Solutions , sending the company's shares soaring i... ...

The BitMine stock price has suffered a harsh reversal in the past few months as demand for crypto treasury companies waned in Wall Street and as Ethereum retreated from its all-time high. Still, funda... ...

Good Morning, Asia. Here's what's making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas.A new CryptoQuant report suggests that Strategy is quietly preparing for a multi-month BTC downturn. This thesis is colliding with prediction markets bets that still believe the company will behave as if it were 2021. CryptoQuant highligh ...

By Karen Brettell Dec 2 (Reuters) - With bitcoin trading well below its recent highs, hedge fund manager and activist investor Eric Jackson is betting that ​investors will still want exposure to crypto — just with less pain on the way ‌down. Jackson's firm EMJ Capital is preparing to launch EMJX, a crypto-focused treasury company that will invest in bitcoin, ‌ethereum and a selection of smaller cryptocurrencies. While EMJX will buy and hold these assets, it plans to distinguish itself from other crypto ...

Core Insights - BitMine Immersion Technologies (BMNR) has established itself in the crypto treasury space by focusing on Ethereum, holding approximately 3.73 million ETH tokens, with a goal to reach 5% of the total ETH supply [3][4] - The company's strategy involves raising capital through equity sales to invest in crypto, positioning itself as a leveraged bet on Ethereum's appreciation, while avoiding the debt risks faced by competitors like MicroStrategy [3][5] - BitMine's total crypto and cash holdings exceed $12 billion, indicating significant growth potential despite the volatile nature of the crypto market [3][4] Company Strategy - BitMine's approach mirrors that of MicroStrategy, but it primarily funds Ethereum purchases through equity raises rather than debt, which helps it avoid leverage-related risks [4][10] - The company does not have index exposure, which means it is not subject to forced stock sales that could arise from regulatory changes affecting digital asset treasury companies [4][10] Market Context - MicroStrategy has faced significant challenges due to its heavy reliance on Bitcoin, which has seen drastic price fluctuations, impacting its market cap and raising concerns about forced asset sales [6][7] - The market-to-net-asset-value (mNAV) ratio for MicroStrategy has dipped below 1.0, indicating potential difficulties in raising fresh capital, which could threaten its financial stability [9] Investment Considerations - Despite BitMine's structural advantages over MicroStrategy, its stock remains highly correlated with Ethereum's price movements, exposing it to extreme volatility [11][12] - The overall model of crypto treasury companies is seen as speculative, with investors advised to limit exposure to such assets within a diversified portfolio [12]

Core Viewpoint - Bitmine Immersion Technologies experienced a significant stock decline of nearly 13% following its latest update on holdings, coinciding with a broader downturn in the cryptocurrency market [1][5]. Company Holdings Update - Bitmine reported an addition of 97,798 Ethereum tokens over the past week, bringing its total Ethereum holdings to 3,726,499 tokens [3]. - The company maintained its Bitcoin holdings at 192, unchanged from the previous week [3]. - Bitmine's stake in Eightco Holdings is valued at $36 million, and it holds $882 million in cash [3]. Market Context - The decline in Bitmine's stock was influenced by negative sentiment in the cryptocurrency market, particularly due to fears surrounding potential interest rate hikes by the Bank of Japan, which led to significant sell-offs in cryptocurrencies [6]. - Ethereum's price dropped from over $3,000 to just above $2,800 on the day of the report, reflecting the adverse market conditions [6]. Investment Outlook - Bitmine's performance is closely tied to Ethereum's market movements, indicating that the stock's trajectory will likely follow the cryptocurrency's price trends [7]. - The upcoming U.S. Federal Reserve meeting could impact market conditions, but current expectations do not favor a rate cut, suggesting caution for potential investors in Bitmine [7].

Company Overview - BitMine Immersion announced the addition of over $265 million in Ethereum to its treasury, acquiring 96,798 ETH, but its stock fell 12% as crypto prices declined [1][2] - The company currently holds 3,726,499 ETH valued at $10.1 billion and 192 Bitcoin worth nearly $16 million, along with $882 million in cash and a $36 million stake in crypto treasury Eightco [2] Market Performance - BitMine's stock has increased by 301% year-to-date, despite a recent drop in ETH's price by 9.7% over a 24-hour period, trading at $2,745 per coin [2] - The average purchase price for BitMine's Ethereum was $3,008, indicating a significant unrealized loss given the current market price [2] Market Context - Ethereum's price is 45% below its record high of $4,946 from August, but market stabilization has been noted following a significant crash in October [3] - The October crash resulted in a record $19 billion in open interest being wiped out in the crypto markets [3] Industry Trends - Strategy, a leading company in crypto treasuries, announced the formation of a $1.44 billion U.S. dollar reserve to provide continuous dividends, even during downturns in Bitcoin prices [4] - Despite this reserve, Strategy has not ruled out the possibility of selling Bitcoin, reflecting a shift in their holdings strategy [5] Price Predictions - In a prediction market, over 76% of respondents expect Ethereum to drop to $2,500 in its next significant move, while the remainder anticipates a rise to $4,000 [7]

Company Overview - BitMine Immersion Technologies (BMNR) has acquired 96,798 ether (ETH), increasing its total ETH holdings to 3.73 million tokens, valued at approximately $10.5 billion, making it the largest Ethereum treasury company [1][2] - The firm also holds 192 bitcoin (BTC), a $36 million stake in Eightco Holdings (ORBS), and $882 million in cash [2] Market Context - Digital asset treasuries (DATs) are under pressure due to declining crypto prices and stock valuations, leading many firms to stop accumulating crypto or even sell off assets [3] - BitMine is one of the few firms continuing to buy ETH despite an estimated $4 billion in unrealized losses on its ETH holdings [3] Strategic Insights - The upcoming Ethereum upgrade, Fusaka, scheduled for December 3, is expected to enhance scalability, security, and usability, motivating BitMine to increase its ETH acquisitions by 39% [3][4] - The Federal Reserve is anticipated to halt quantitative tightening and potentially cut interest rates in December, which could positively impact ETH prices and stabilize the crypto market [4]

Core Viewpoint - Peter Schiff warns that companies utilizing Bitcoin or Ethereum as part of their corporate treasury strategies are likely to face insolvency due to structural weaknesses in their business models [1][6]. Group 1: Company Analysis - Strategy's Bitcoin-leveraged model is criticized for generating no meaningful earnings and incurring losses, relying on new debt or equity to purchase more Bitcoin, which does not yield cash flow [2][3]. - Schiff highlights that if Strategy's stock price falls below the value of its Bitcoin holdings, it will disrupt the "yield loop," preventing the company from raising new capital and potentially leading to a forced sale of Bitcoin [3][4]. Group 2: Market Conditions - The current cryptocurrency market is described as exhausted, with Bitcoin failing to rally despite positive catalysts, indicating a dominance of leveraged, weak-hand buyers [4][5]. - Schiff compares the current digital asset boom to historical speculative bubbles, asserting that it is larger than the dot-com mania and lacks a solid foundation [5][6]. Group 3: Future Predictions - Schiff predicts that most crypto assets will ultimately decline to zero, with tokenized gold being the only sustainable blockchain application [6]. - He concludes that corporations relying on Bitcoin or Ethereum treasury models are at risk of insolvency, as their operations depend on speculative enthusiasm rather than a sustainable revenue model [6].

Core Insights - BitMine Immersion Technologies, the largest corporate holder of Ethereum, reported a full-year income of $328 million and declared its first dividend, but its share price fell due to concerns over digital asset treasury strategies and a recent drop in ETH prices [1][2] Financial Performance - The company owns $9.6 billion worth of Ethereum and plans to pay a dividend of one cent per share next month, reflecting its commitment to shareholder value [2] - BitMine's share price recently decreased by 5.3% to around $24.65, and it has experienced a 52% decline over the past month amid falling crypto prices [2] Market Context - BitMine's stock price has underperformed compared to Ethereum, which has fallen 28% over the past month to a four-month low of $2,700 [4] - The company purchased its Ethereum holdings at an average cost of around $3,120, when the asset was valued at approximately $3,600 in July [5] Future Outlook - BitMine is building a "Made in America" validator network, set to go live in the first quarter of next year, and has selected three pilot partners for testing staking capabilities [4] - BitMine's Chairman, Tom Lee, anticipates a V-shaped recovery for crypto prices, linking the current downturn to a significant liquidation event in the market [3][6]