July 14, 2021 | Issue #177

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MUST READS

Argo Blockchain Eyes NASDAQ Listing

Bitcoin mining firm Argo Blockchain is considering a listing on the NASDAQ stock exchange after listing on The London Stock Exchange (LSE) in 2018.

The company said that Argo had benefited from a sharp decline in the global hashrate, which made Bitcoin mining easier. Argo said it mined 333 BTC across May and June, nearly 40% of the 883 BTC mined in the first six months of the year. The company said it now owns 1,268 BTC or BTC equivalent.

See how much BTC Argo owns in comparison to other public companies here.

Institutions Sending Mixed Signals on Client's Crypto Wants

In an interview with CNBC this morning, BlackRock CEO Larry Fink, said the asset manager has seen very little demand for digital assets and that crypto typically isn't part of their clients' long-term strategies (watch clip here).

Meanwhile... this week:

Fidelity Digital Assets announced its plans to increase headcount by about 70% as demand for cryptocurrency services from institutional investors remains strong...
Bank of America created a new team dedicated to researching cryptocurrencies...
Soros Fund Management began trading BTC and is looking at other cryptocurrencies...
Data provider S&P Dow Jones Indices added five new indices to its existing roster of crypto market benchmarks...

Diffuse Digital: The First Institutional Grade Digital Asset Index Fund

Diffuse has launched Diffuse Digital 30, the first institutional market cap weighted digital asset index fund.

This private fund offers access to a diversified basket (rebalanced monthly) of the top 30 digital assets, weighted by market capitalization, with monthly redemption and no performance fee.

From Diffuse Digital 30’s Fund Manager, Kenny Estes:

“With the rise of competitor blockchains and decentralized finance (DeFi), investors are desperate for digital asset exposure but fund producers largely focus on BTC and ETH instead of a diversified basket of all the star coins....

Our Investment Committee combines deep digital asset technology experience and traditional finance industry expertise, supported by Wall Street respected legal, administration, and audit firms, to deliver attractive long-term returns while striving to minimize executional risks."

Contact us today to gain access to Diffuse Digital 30. Early investors also receive a share in Diffuse Digital 30’s profits for the lifetime of the fund! Get more info here >

DEEP DIVE

The Fundamentals of Circle's $4.5B SPAC

As we have previously reported, Circle, the crypto firm that operates leading stablecoin USD Coin (USDC), has agreed to go public through a merger with a SPAC named Concord Acquisition Corp. at a $4.5 billion valuation and under the symbol CRCL.

This week, we have Lex Sokolin, of The Fintech Blueprint, helping us breakdown what we need to know:

1.) Circle's early business model included Circle Invest (since sold to Voyager Digital), Circle Pay, and Circle Trade. It had also bought crypto exchange Poloniex which it has since sold.

2.) Now though, nearly all of Circle's focus is on its stablecoin, USDC, which is funded by both Circle and Coinbase. USDC's market cap is currently $30 billion, which is significantly less than Tether's $60 billion, but will continue to be a better onramp for Western countries.

3.) Circle currently makes its money through transaction & treasury services, interest income, and a SeedInvest partnership. Lex estimates that Circle will profit ~$60 million in 2021 off of these business areas. At a $4.5 billion valuation, Circle is sporting a sky high 90x multiple.

"We are fans of Circle, and the industrial logic of the USDC-powered mega payment rail checks out for us. But this is definitely a premium price point, and we would be positively surprised if the revenues landed as such."

ShapeShift to Become Decentralized Exchange, Airdrops FOX Tokens to 1M+ Users

Colorado-based ShapeShift announced today it will begin winding down its operations as a formal company and handing over its legacy to a decentralized autonomous organization (DAO).

After changing its business model multiple times over the past few years, ShapeShift will officially become decentralized by airdropping 340 million FOX tokens to users in what is being dubbed “the largest airdrop in history." The token is already trading 75% higher at the time of writing.

Read more from the founder of ShapeShift, Erik Voorhees here and from an investor's perspective here.

Inflation is already here. Here's what to do next.

Few Americans seem to realize the repercussions of $11 TRILLION being pumped into the U.S. financial system in the past 18 months. Learn what’s happening now, what’s coming next, and most importantly, what YOU can do to protect and grow your money in the years to come.

Click here for details (includes 4 steps to prepare now).

REGULATORY FRONT

Germany Grants Institutional Funds The Ability To Invest In Crypto

German funds aimed at institutional investors can now allocate up to a fifth of their assets to cryptocurrencies, but managers are expected to take a cautious approach as they weigh the risks of placing client money in the ultra-volatile asset class.

Some EU Lawmakers Want To Outlaw Proof of Work

It appears that the European Parliament may be bold enough (and stupid enough) to attempt to ban Proof of Work, the consensus mechanism that makes Bitcoin operational, throughout the European Union in an effort to appease the growing ESG movement.