Bitcoin (BTC) fell below $43,000 Thursday in a sell-off fueled by the Federal Reserve’s renewed pledge to begin unwinding support for pandemic stimulus. For the so-called diamond hand investors among us, the drop represents an attractive entry point to continue accumulating bitcoin at discounted rates.
2021 was the year when institutions and companies became a major mover and shaker in the bitcoin market. By the end of the year, companies and investment funds owned approximately 1.48 million bitcoins, which represented 7% of the current circulating supply. Do you think these big strategic investors will be shaken by FUD?
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Bitcoin Treasuries Rise
The number of publicly listed companies owning Bitcoin has grown in 2021, as more corporate executives begin to learn about the value proposition of the digital asset. According to on-chain analyst Willy Wu, corporate treasuries have gained market share from leading exchange-traded funds, sending a strong signal that companies have a greater influence on the bitcoin market.
Since the MicroStrategy conference at “Bitcoin for Corporations” in February 2021, public companies *with significant BTC holdings have gained market share from spot ETFs** as a way to gain exposure to BTC in the public equity markets.
* MicroStrategy and general mining companies
** mainly grayscale pic.twitter.com/e18OEfgiEW
– Willy Woo (woonomic) January 2, 2022
Related: Bitcoin could outperform stocks in 2022 amid Fed tightening – Bloomberg Analyst
WonderFi plans to buy parent company Bitbuy for $162 million
WonderFi Technologies, a decentralized financial platform backed by business magnate Kevin O’Leary, announced this week that it will acquire the owner of Bitbuy First Ledger Corp in a deal worth $162 million. Founded in 2016, Bitbuy is a licensed crypto exchange operator in Canada with more than 375,000 users. To fund the purchase, WonderFi will issue 70 million new shares, pay $15.7 million up front and $23 million in deferred cash in 12 months.
Canaan expands its presence in Kazakhstan
Rising fuel prices sparked unprecedented political unrest in Kazakhstan this week, forcing the country’s presiding government to unexpectedly resign. Just a day ago, Chinese bitcoin mining company Canaan Inc announced that it has expanded its business ties with the Central Asian country. As of December 31, 2021, Canaan had deployed 10,300 units of AvalonMiner in Kazakhstan. The political turmoil in Kazakhstan had a negative impact on the Bitcoin network, which saw a sharp drop in the hash rate of 13.4% in a matter of hours.
Related: Cointelegraph Consulting: Crypto Events for 2021 Later
NFT-focused holding company closes Series A worth $50 million
Digital asset custodian Metaversal has concluded a $50 million investment round led by CoinFund and Foxhaven, with additional participation from Dapper Labs, Digital Currency Group, Rarible and Theta Blockchain Ventures, among others. Metaversal will use the proceeds to expand its NFT-focused business, which includes acquiring more digital holdings and supporting emerging projects in the space.