MicroStrategy has announced an increase in its convertible note offering to $875 million, intending to use the funds to pay off existing debt and acquire more Bitcoin. It marks another bold move by the company, which is known for its aggressive Bitcoin acquisition strategy.
The raised funds will help MicroStrategy redeem $500 million of its current senior secured notes due in 2028, with the remaining amount allocated for purchasing additional Bitcoin and general corporate purposes. The company’s total reserves now hold approximately 244,800 BTC, bought at an average price of around $38,585 per Bitcoin.
These convertible notes, set to mature in 2028, will be offered to qualified institutional investors, with holders given the option to convert them into cash, shares of MicroStrategy’s Class A stock, or a combination of both.
The US Securities and Exchange Commission (SEC) has reached a settlement with decentralised finance platform Rari Capital and its founders following accusations of misleading investors and operating as unregistered brokers. The settlement addresses serious concerns raised by the SEC over the platform’s compliance with financial regulations.
Rari Capital, which once managed over $1 billion in crypto assets at its peak, was co-founded by Jai Bhavnani, Jack Lipstone, and David Lucid. The SEC highlighted that the platform and its founders failed to properly disclose key information to investors, contributing to potential risks for those involved.
The following case underscores regulatory bodies’ increasing scrutiny of decentralised finance platforms, as they aim to ensure transparency and protect investors in the fast-evolving crypto space.
The cryptocurrency market saw a significant boost following a recent rate cut by the US Federal Reserve, leading to a surge in liquidations. Data from Coinglass shows a 46% rise in crypto liquidations, totalling nearly $200 million. Most of these were short positions, with Bitcoin experiencing a 2.9% price rise, pushing its value to around $63,000. The largest single liquidation, valued at $8.9 million, occurred on the Bybit exchange.
Ethereum followed closely, with over $35 million in liquidations as its price surpassed $2,400. Despite the increase in liquidations, total crypto open interest rose by 4%, reflecting strong market engagement. A jump in open interest often points to ‘fear of missing out’ (FOMO), which can lead to further liquidations and high price volatility.
After the Federal Reserve’s 50-basis-point rate cut, the global cryptocurrency market cap increased by 1.9%, reaching $2.23 trillion. Trading volume exceeded $120 billion, highlighting strong bullish sentiment across both the crypto and traditional markets.
The Swiss stock exchange, SIX, is considering launching a cryptocurrency trading platform in Europe to tap into a market traditionally dominated by Binance, OKX, and Coinbase. The move aims to attract large institutional investors, using Switzerland’s progressive crypto regulations as a selling point. Bjørn Sibbern, the global head of exchanges at SIX, noted that crypto is increasingly recognised as a legitimate asset class. The platform would likely support crypto and derivatives trading, targeting institutional players such as asset managers.
While other traditional finance firms like Deutsche Boerse and Standard Chartered have ventured into crypto, many have hesitated due to unclear regulations. Despite this, Switzerland has positioned itself as one of Europe’s most crypto-friendly nations, with robust laws governing crypto trading, asset custody, and token classification.
SIX already operates AsiaNext, a crypto derivatives venture in Singapore, and is now exploring whether a similar platform could succeed in Europe. Though the initiative is still in consideration, it could mark a significant expansion for SIX, which already runs a digital exchange and has seen success with digital bonds since 2018.
A group of crypto scammers appears to have missed out on a major payday after hacking several high-profile social media accounts on 18 September, only to walk away with just a few thousand dollars. The compromised accounts, including Lenovo India, Yahoo News UK, and film director Oliver Stone, were used to promote a Solana-based memecoin called HACKED.
The hackers took an unusual approach by openly admitting the accounts had been breached and encouraging followers to invest in the token, claiming they could all profit together. However, this tactic backfired. Blockchain investigator ZachXBT revealed that top traders made less than $1,000, and the scammers only earned about $8,000 after removing liquidity from the coin.
Despite the initial pump, the HACKED token quickly collapsed, with its market cap falling to just $3,100. ZachXBT speculated that the affected accounts may have granted permissions to the same site or app, reminding users to review their connected apps for security. This is the latest instance of hackers targeting social media accounts to promote dodgy cryptocurrencies.
Fireblocks and Chainlink Labs have announced a new partnership aimed at helping banks issue and manage regulated stablecoins. The collaboration, revealed in a press release on 17 September, will provide a comprehensive solution for stablecoin issuers, covering everything from minting and custody to distribution. The strategic alliance enhances tokenisation capabilities and offers a real-time view of stablecoin reserves, market value, and total supply across various blockchains.
Angie Walker, Chainlink Labs’ global head of banking and capital markets, highlighted that this partnership will not only improve transparency for stablecoin users but also enhance the stablecoin’s role as a secure payment method and trading tool in digital asset markets. Although the specific banks involved in issuing stablecoins have not yet been disclosed, both companies previously supported Wenia, a division of Colombia’s largest bank, Bancolombia, in launching its COPW stablecoin.
The collaboration comes amid growing interest in stablecoins, which settled $3.7 trillion in transactions in 2023 and are projected to reach $5.28 trillion by 2024. According to a recent survey by Castle Island Ventures and Brevan Howard Digital, stablecoins are increasingly being used as a general-purpose digital dollar rather than just trading collateral.
Last week, Dogecoin saw a significant increase in activity, processing 1.93 million transactions, the highest weekly total since early July. Although this figure is still below February’s peak, the rise suggests renewed interest in DOGE and potential future developments as more users engage with the network.
Data from CoinGlass shows a 1.37% rise in open interest for Dogecoin, reaching $463.16 million. This increase in outstanding derivative contracts points to heightened speculative activity, with investors anticipating significant price movements for DOGE shortly. Veteran investor Ted has expressed optimism on Twitter, noting that past Dogecoin rallies have often led to broader altcoin surges. He identifies a fractal pattern in DOGE’s current performance similar to one seen in 2021, which could signal another major alt season.
Ted’s views align with those of crypto analyst Crypto Anbu, who has noted that Dogecoin’s current technical indicators suggest a potential altcoin surge. These insights from prominent analysts support the idea that Dogecoin’s recent performance might be a precursor to significant movements in the broader cryptocurrency market.
Dogecoin is currently trading at approximately $0.1007, showing a slight 0.08% increase over the past 24 hours. The coin appears to be stabilising, which often occurs before substantial price changes.
Stablecoin operator Circle has expanded its services into Latin America, allowing users in Brazil and Mexico to settle payments using its USDC token. The new feature enables the direct conversion between USDC and the Brazilian real or Mexican peso, removing the need for users to first convert their local currencies into US dollars before acquiring the stablecoin. Circle aims to streamline cross-border transactions for businesses and individuals, reducing both time and cost.
The company is now integrated with Brazil’s PIX and Mexico’s SPEI, the respective real-time payment systems, allowing local bank transfers to convert into USDC within minutes, rather than the typical days required for international wire transfers. That development is expected to free up capital and make stablecoin use more efficient in these growing markets.
Circle’s expansion into Brazil and Mexico follows its decision to relocate its global headquarters from Ireland to New York City. Now based in One World Trade Center, the company is positioning itself closer to Wall Street, and there are reports it may be preparing for an initial public offering (IPO), potentially becoming the first stablecoin operator to go public.
A new report reveals that 134 countries, representing nearly the entire global economy, are now exploring central bank digital currencies (CBDCs). This marks a significant rise from just 35 nations investigating the technology in 2020. According to the US-based Atlantic Council, over 65 countries, including major economies like India, Australia, and Brazil, are in advanced stages, either developing, piloting, or preparing to launch their CBDCs.
The G20 nations are particularly active, with 19 countries pushing ahead in their exploration of digital currencies. However, only three countries – The Bahamas, Jamaica, and Nigeria – have fully launched CBDCs, and each is working to expand the reach of these currencies within their borders. The report highlights the geopolitical dimensions of this digital push, especially among BRICS nations, which are piloting CBDCs as an alternative to the US dollar in international payments.
Since Russia’s invasion of Ukraine and the subsequent G7 sanctions, the number of cross-border CBDC projects has more than doubled. Several of these initiatives aim to connect banking systems across countries like China, Thailand, and the UAE, further driving global interest in digital currency solutions.
Australia’s central bank, the Reserve Bank of Australia (RBA), has shifted its focus towards developing a wholesale central bank digital currency (CBDC), citing fewer challenges and greater benefits compared to a retail CBDC. Assistant Governor Brad Jones, in a speech on 18 September, emphasised that a wholesale CBDC would serve as an evolutionary upgrade to existing financial systems rather than a revolutionary change. This type of CBDC is expected to enhance Australia’s financial infrastructure by leveraging new technologies such as programmability and atomic settlement.
The RBA is launching a three-year research initiative to explore the potential of wholesale CBDC and tokenised commercial bank deposits. Jones highlighted the central bank’s collaboration with industry leaders to assess the viability of these innovations and their ability to streamline the nation’s financial markets. Meanwhile, the benefits of a retail CBDC remain uncertain, with Jones stating that such a shift could introduce significant challenges to the current financial landscape.
Although the RBA remains open to considering a retail CBDC in the future, any decision would require legislative changes and government approval. As Jones pointed out, the Australian Government would ultimately be responsible for determining whether to introduce a retail CBDC, in line with international practices.
