MicroStrategy Could Lend Bitcoin to Generate Yield

MicroStrategy Could Lend Bitcoin to Generate Yield

Benchmark analyst Mark Palmer says MicroStrategy may soon lend some of its large Bitcoin holdings to generate yield. The company recently purchased 7,420 Bitcoin for $458 million, bringing its total holdings to 252,220 BTC, valued at around $15.8 billion. The acquisition followed a $1.01 billion private offering of convertible senior notes, which will help retire existing debt and fund more Bitcoin purchases.

With growing institutional interest, MicroStrategy could now find the counterparties it needs to safely lend Bitcoin, offsetting interest expenses and strengthening its financial profile. CEO Michael Saylor has previously been hesitant to lend due to counterparty risks but may reconsider given recent developments. Palmer suggests that the yield could be used to further grow MicroStrategy’s Bitcoin treasuries.

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FTX's Caroline Ellison Sentenced to Just 2 Years

Caroline Ellison, former co-CEO of Alameda Research, received a two-year sentence for her role in the collapse of FTX, having pled guilty to multiple fraud charges. Ellison admitted that former FTX CEO Sam Bankman-Fried directed her to commit the crimes that led to the downfall of the exchange. She expressed deep regret during her sentencing, apologizing to those affected by FTX’s implosion.

Ellison's cooperation with authorities reduced her sentence significantly, with her testimony instrumental in convicting Bankman-Fried. Interestingly, both SBF and hip-hop mogul Sean "Diddy" Combs are reportedly sharing the same barrack-style living quarters at the Metropolitan Detention Center in Brooklyn. Sources claim that the two high-profile inmates have crossed paths in the facility with 20 other prisoners.

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Circle Unveils Compliance Tool for Onchain Transactions

Circle, the issuer of the stablecoin USDC, has launched a new compliance tool called the Compliance Engine to help companies meet regulatory requirements. CEO Jeremy Allaire stated the tool is designed to allow developers to build decentralized applications while meeting strict compliance standards. This marks another milestone for Circle as it continues to expand its global reach.

The engine includes features like transaction screening, behavior monitoring, and support for FATF’s Travel Rule, ensuring regulatory checks are met in real-time. It will also support multiple blockchains, including Ethereum, Avalanche, Polygon, and Solana. Circle plans to charge developers on a pay-as-you-grow model.

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SEC Chair Gensler Faces Congress on Crypto Regulation

SEC Chair Gary Gensler faced tough questions during a congressional hearing, as lawmakers criticized the agency’s handling of crypto regulation and its missteps in the DEBT Box case. Republican Majority Whip Tom Emmer accused the SEC of failing to provide clear rules for the crypto industry and highlighted the agency’s sanctions over its conduct in the DEBT Box case.

Gensler acknowledged that the case was poorly handled but defended the SEC's broader regulatory efforts. In a separate line of questioning, Democrat Ritchie Torres challenged Gensler by comparing NFTs to Yankees tickets, pointing out the complexity of defining what constitutes a security. Gensler cited the Howey Test, explaining how an asset's sale and profit expectations determine its status.

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Data of the Day

Decentralized prediction platform Polymarket has seen 2024 U.S. presidential election bets exceed $1 billion, with Kamala Harris leading with 50% odds and $155 million in bets. Donald Trump follows closely with a 48% chance and $164 million wagered. Other candidates, including Robert F. Kennedy Jr. and Joe Biden, contribute to the other ~70% of the bets despite having a combined chance of <2%.

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More Breaking News

• Kraken has expanded its European footprint with the acquisition of Dutch crypto broker Coin Meester, enhancing its presence in several European markets.
• EigenLayer is set to remove transfer restrictions on its EIGEN token by September 30, allowing stakeholders to trade and transfer their tokens.
• Bybit has launched a Shariah-compliant crypto account, targeting Muslim investors seeking investment options that adhere to Islamic finance principles.
• Bitget predicts that TON will distance itself from Telegram in the next two years to mitigate regulatory risks, despite its current reliance on the platform's user base.
• Binance refutes a dark web claim that 12.8 million customer accounts were compromised, stating the alleged data leak is a hoax.
• Warpcast has launched a "mini apps" feature for the decentralized social media protocol Farcaster, enabling users to create apps directly within their social feeds.
• A second Satoshi-era Bitcoin miner has moved $630,000 worth of BTC to Kraken after holding the coins dormant for 15 years.

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