On January 4, 2024, DJ Dunkerley of Newcurrencyfrontier.com reported that the market for bitcoin could take off if the SEC approved proposals to allow the cryptocurrency to spot ETFs on the U.S. stock market. Dunkerley believes, "That will trigger a bull market in Bitcoin that will last for years, taking it to US$500,000 from US$43,000 today."
On Wednesday, the SEC gave its approval for some investment companies to offer the "spot bitcoin" exchange-traded funds.
The regulator's highly anticipated move is expected to make bitcoin investing more accessible to Main Street investors without requiring them to own the digital asset directly.
SEC Chair Gary Gensler made it clear in a statement on the SEC's website that the agency remains wary. "While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto," he wrote.
Hannah Lang with Reuters touched on the impact of Wednesday's decision in her article titled "Why a US Bitcoin ETF is a Gamechanger for Crypto." Lang noted that this decision will give validity to the crypto industry, bringing it closer to the mainstream.
Dunkerley cited trends in the gold market when ETFs were approved in 2003, where gold jumped from US$400 to over US$1800. Dunkerley admits that there may be snags in the process, especially since this is an ongoing fight that has lasted ten years.
McAlinden Research reported on December 5, 2023, that gold and bitcoin could be considered complementary assets.
The two commodities share a number of traits, including the fact that they are both considered to be "safe haven" investments and that their value is defined by scarcity. McAlinden also stated that the actions of the U.S. Federal Reserve and the value of the dollar affect both commodities in similar ways. When the dollar is weak, the value of bitcoin and gold increases.
Hannah Lang with Reuters touched on the impact of Wednesday's decision in her article titled "Why a US Bitcoin ETF is a Gamechanger for Crypto." In this article, she explained that "a spot bitcoin ETF allows investors to gain exposure to the price of bitcoin without the complications and risks of owning bitcoin directly." She continued, "While bitcoin has gained 70% since the Grayscale ruling, analysts said it was unclear how much further it would rise, with some saying interest rates would play a bigger role." Lang noted that this decision will give validity to the crypto industry, bringing it closer to the mainstream.
With the SEC's decision, cryptocurrency could swing high, and investors would be wise to keep an eye on opportunities.
Coinbase Global Inc.
According to Eric Wade with The Stansberry Digest: Masters Series, Coinbase Global Inc. (COIN:NASDAQ) has drawn some scrutiny since the SEC filed a lawsuit against the company, but Wade believes that this case could benefit crypto investors.
Wade observed that after announcing the lawsuit, prices moved up for a brief period before uncertainty brought prices back under control.
However, Wade believes interest in cryptocurrencies will be sustained since "while crypto investors might be able to shake off the threat of SEC lawsuits, they can't shake off the notion that if the dollar starts losing favor around the world, people holding dollars risk being on the outside of sound currency, looking in."
Newsletter Writer Ron Struthers reviewed Coinbase Global Inc. in June of 2023 after the SEC's announcement.
According to Struthers, "My plan is to take some profits and sell some stocks as the opportunity presents itself in the next two or three months, with the idea of scooping up some good deals in Q4." Struthers continued, "The juniors will have their day again, but the big guys have to move first."
Streetwise Ownership Overview*DJ Dunkerley also reviewed Coinbase Global, stating, "I'm not planning on selling anytime soon. Of course, one week from now, I think there could be one last big correction if the application is delayed again."
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 2.59% of the company. According to Reuters, Co-Founder and Board Director Frederick Ernest Ehrsam III owns 2.59% of the company with 4.84 million shares.
Reuters reports that institutional investors own approximately 29.12% of the company, as The Vanguard Group, Inc., owns 7.19% of the company with 13.81 million shares, ARK Investment Management L.L.C owns 5.52% of the company with 10.60 million shares, Sumitomo Mitsui Trust Bank, Limited, owns 4.12% of the company with 7.91 million shares, BlackRock Institutional Trust Company, N.A., owns 3.32% of the company with 6.38 million shares, Paradigm Operations L.P. owns 2.35% of the company with 4.52 million shares, State Street Global Advisors (U.S.) owns 2.01% of the company with 3.87 million shares, Nikko Asset Management Americas, Inc., owns 1.70% of the company with 3.26 million shares, Fidelity Management & Research Company L.L.C. owns 1.47% of the company with 2.83 million shares, and Two Sigma Investments, L.P., owns 1.44% of the company with 2.77 million shares.
According to Reuters, there are 239.25 million shares outstanding with 185.05 million free float traded shares, while the company has a market cap of CA$37,226.61 million and trades in the 52-week period between CA$34.72 and CA$187.39.
Riot Platforms Inc.
On January 4, 2023, Riot Platforms Inc. (RIOT:NASDAQ) announced updates related to its performance in December of 2023 and the construction of its new Corsicana Facility in a press release.
The company stated that it produced 619 bitcoins in December and sold 590 bitcoins that month, with an average production rate per day of 20.0 bitcoins. In total, the company reports that it holds 7,362 bitcoins and brought in net proceeds of US$176.2 million and US$25.3 million in December.
The company also stated that it is in Phase 1 of building the Corsicana Facility, which it expects to have 1 gigawatt of total capacity by the time it is running.
Jason Les, the CEO of Riot, commented, "We are proud to close 2023 on a high note, having completed the expansion of our Rockdale Facility and also making significant progress on the development of our new Corsicana Facility."
Les continued to say, "As a result of our industry-leading balance sheet strength, Riot is well positioned to execute our plan to increase our self-mining hash rate to 28 EH/s by the end of 2024."
Technical Analyst Clive Maund reviewed Riot Platforms, Inc., taking a look at the crypto market in July of 2023. Maund observed that, while the company was recovering from what he called a "hit piece" by the New York Times, it still had the potential to perform well for investors.
Maund commented, "There is the possibility that the stock will react back to the support shown on our chart and then turn up, in which case the uptrend boundary will need to be adjusted."
Argo is expecting construction of the Corsicana Facility to finish and go online in Q1 of 2024 and for a second group of miners to go online in Q2 of 2024, according to the company's investor presentation.
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own 8.16% of the company. According to Reuters, CEO Jason Les owns 4.10% of the company with 8.46 million shares, and Executive Chairman Soo Il Benjamin Yi owns 4.06% of the company with 8.39 million shares.
Reuters reports that institutions own approximately 23.99% of the company, as The Vanguard Group, Inc., owns 9.31% of the company with 19.23 million shares, BlackRock Institutional Trust Company, N.A., owns 5.43% of the company with 11.22 million shares, State Street Global Advisors (U.S.) owns 2.47% of the company with 5.11 million shares, Geode Capital Management, L.L.C. owns 1.93% of the company with 3.98 million shares, Morgan Stanley & Co. L.L.C. owns 1.38% of the company with 2.85 million shares, Susquehanna International Group, L.L.P., owns 1.27% of the company with 2.63 million shares, Dimensional Fund Advisors, L.P., owns 1.23% of the company with 2.55 million shares, and Millennium Management L.L.C. owns 0.97% of the company with 2.01 million shares.
According to Reuters, there are 206.52 million shares outstanding with 184. 23 million free float traded shares, while the company has a market cap of CA$3,062.62 million and trades in the 52-week period between CA$4.45 and CA$20.63.
Argo Blockchain P.L.C.
On January 8, 2024, Michael Susin with MarketWatch reported that Argo Blockchain P.L.C. (ARB.L:LSE) had recently raised US$9.9 million in funding in a deal where the company issued 38 million shares to institutional investors at a 24% discount.
Stock Traders Daily released a report on January 1, 2024, giving the company a near-term rating of "Neutral," with a mid-term rating of "Strong," and a long-term rating of "Strong." The report stated that it has a buying target of "slightly over 9.94" for Argo.
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 0.8% of the company.
Director Sarah Gown owns 0.51% of the company with 2.76 million shares, while Director Peter Wall owns 0.29% of the company with 1.56 million shares.
Reuters reports that institutional investors own 6.07% of the company.
Toroso Asset Management owns 4.15% of the company with 22.27 million shares, Prometheus Capital Finance Ltd. owns 0.87% of the company with 4.68 million shares, Mirae Asset Global Investments (U.S.A.) L.L.C. owns 0.68% of the company with 3.64 million shares, California State Teachers Retirement System owns 0.10% of the company with 0.52 million shares, Vident Investment Advisory, L.L.C., owns 0.07% of the company with 0.38 million shares, Sidehurst Ltd. owns 0.06% of the company with 0.33 million shares, and Banco Alfa de Investimento S.A. owns 0.06% of the company with 0.31 million shares.
According to Reuters, there are 536.96 million shares outstanding with 531.96 million free float traded shares, while the company has a market cap of CA$150.22 million and trades in the 52-week period between CA$6.00 and CA$36.00.
Sign up for our FREE newsletter
Important Disclosures:
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
For additional disclosures, please click here.
