BITCOIN TREASURIES

Hong Kong-Based Boyaa Interactive Follows Microstrategy’s Lead with $45 Million Strategic BTC Investment Plan

The Scoop: Boyaa Interactive, based in Hong Kong, recently announced its plan to invest in Bitcoin, allocating $45 million for this initiative as part of its strategy to enhance asset allocation.

Diversity of Another Kind: Following its August 2023 announcement, Boyaa's Board has identified the acquisition of bitcoin as a key component for its business expansion. The company intends to seek shareholder approval for a specialized 12-month acquisition mandate dedicated to Bitcoin investment.

Big Bitcoin Bag: The mandate, spanning 12 months post-shareholder approval, set a maximum investment limit of $45 million specifically for Bitcoin. This aligns with Boyaa's strategic focus on diversifying its investment portfolio with digital assets.

Who’s In Charge: Purchases will be guided by prevailing market bid and ask prices, with a cap on premiums at 10% above the market rate. The investment will be funded from Boyaa's existing cash reserves. The Board will retain full discretion over the volume and timing of the transactions, ensuring acquisitions are executed on licensed and reputable trading platforms.

⛏ Last Sunday, the total daily Bitcoin mining reward surpassed $44M for the first time since April 2022. All of this while mining difficulty continues to hit new all-time highs.

🌐 IMF Managing Director Kristalina Georgieva highlighted the potential of Central Bank Digital Currencies (CBDCs) to replace cash, advocating for continued preparation and adoption despite their current limited use globally.

💾 A new Bitcoin proposal called Durabit outlines a method of using Bitcoin-based incentives to solve BitTorrent's seeding problem, using time-locked transactions to reward users for sharing files.

🎙️ Presidential candidate Vivek Ramaswamy discussed Bitcoin on the Coin Stories podcast, advocating for its independence from government control and critiquing BlackRock's Bitcoin ETF as government-influenced.

🇺🇸 US inflation falls to 3.2%; a more drastic cut inflation than anticipated by the Fed. These numbers are often adjusted later, so take them with a grain of salt.

BlackRock Highlights USDT and USDC as Potential Risks to Bitcoin in ETF Proposal

The Scoop: In its proposal for a U.S. spot Bitcoin ETF, BlackRock identified stablecoins as potential risks to the Bitcoin market, particularly USDT and USDC.

Not the Full Story: The firm emphasized the influence of stablecoins on the cryptocurrency ecosystem. Despite not directly investing in these assets, BlackRock recognizes their significant impact on Bitcoin’s price. Blackrock did leave out that they are one of the biggest investors in Circle, the creator of USDC.

Playing Games with the Underlying: BlackRock’s document also delved into the regulatory challenges and historical incidents involving stablecoins, particularly Tether's misleading statements about asset backing and its settlement with the CFTC.

A Tangled Web We Weave: Blackrock’s analysis extends to the interdependence of cryptocurrencies with traditional financial systems, as evidenced by the de-pegging event of Circle's USDC in March 2023.

Does Sonnenhein's tweet reveal anything new about Grayscale's ETF approval?

Yes - 58%

No - 42%

👍 Yes: “You probably would not risk being wrong about an approval for no good reason unless you had it on pretty good authority that approval was imminent.” - Gary

👎 No: “It’s just baseless hype. Nothing more.” - Nilsa

💰 MicroStrategy's Bitcoin investment has so far yielded over $1.1 billion in unrealized gains as the BTC price continues surging, boosting company stock by 160%.

📈 Investment in Bitcoin Exchange-Traded Products (ETPs) has reached an all-time high. ETPs are types of securities that track an underlying asset and trade on stock exchanges. Grayscale Bitcoin Trust is one example of such a product.

⏱️ The SEC postponed its decision on HashDex's Bitcoin Spot ETF extending the review period beyond initial deadlines. Hashdex filed to convert its bitcoin futures ETF into a spot bitcoin ETF back in September.

📜 The New York State Department of Financial Services (NYDFS) introduced stricter guidelines for cryptocurrency listings and de-listings, aiming to ‘enhance investor protection in New York’.

Today’s newsletter was written by Colin and edited by Jordan.