Kategorie: Crypto Markets

Daily headlines and news about crypto markets.

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Tesla lost $140 million on its Bitcoin in 2022

  • Tesla recorded gains of $64 million and impairment loss of $204 million.
  • The company has revealed it sold 75% of its Bitcoin holdings, and held BTC worth about $184 million as of 31 December 2022.
  • The electric vehicle maker bought Bitcoin worth $1.5 billion in 2021.

Tesla has revealed that the company sold most of the Bitcoin it purchased in 2021, and suffered a significant loss on the digital assets it currently holds during the 2022 crypto crash.

In its Form 10-K filing with the US Securities and Exchange Commission (SEC) on Tuesday, 31 January, Tesla disclosed that it gained $64 million from its digital assets holdings when converting them into fiat currency. 

However, according to the filing, the electric car maker’s Bitcoin bet also included a $204 million impairment loss for the year ending 31 December 2022. 

All the gains recorded during the year were offset by the net impairment loss, which resulted from Tesla’s move to restructure its operations around the asset. This means the company reported a net loss of $140 million on its crypto trading in 2022. 

“During the years ended December 31, 2022 and 2021, we recorded $204 million and $101 million of impairment losses on such digital assets, respectively. During the years ended December 31, 2022 and 2021, we realized gains of $64 million and $128 million, respectively, in connection with converting our holdings of digital assets into fiat currency,” the company reported.

Tesla has sold 75% of its Bitcoin

Elon Musk’s company revealed that it received or purchased an “immaterial amount” of crypto last year. The tech giant plashed $1.5 billion when buying Bitcoin in 2021. 

As of 31 December, 2022, Tesla had sold roughly 75% of its Bitcoin. Per the filing, that left the company with around $184 million worth of digital assets as of the end of last year, down from $1.26 billion at the end of 2021.

While the fair market value BTC held as at 31 December 2021 was close to $2 billion (after Bitcoin price soared to highs of $69,000), the company’s total crypto holdings at the end of 2022 had a fair market value of approximately $191 million.

Notably though, that value could be much high given the price of Bitcoin has soared nearly 40% year-to-date. The company’s stock (think the Bitcoin vs. Tesla stock comparison) has also soared over the past 30 days, with TSLA up nearly 56% YTD on Tuesday morning.

The post Tesla lost $140 million on its Bitcoin in 2022 appeared first on CoinJournal.

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Crown Token project grants token holders opportunity to vote on upcoming films

  • The Crown Token project pairs fans with film production teams.
  • CROWN Token holders will have the chance to vote on the upcoming films by T&B Media Global.
  • The token holders will specifically be able to vote on the creative design of animation films.

CROWN Token Project has announced that it will allow its token holders the right to vote on the character design of three upcoming films by T&B Media Global. The project uses blockchain technology to expand business opportunities within the entertainment industry.

Each of the three films that token holders will be voting on has a projected budget of between $15 million and $16 million. The films have hired academy award-winning teams who have worked on productions like Newsies, The Lion King, and the Hunchback of Notre Dame.

Animation films fans can have a say in their creation

Going by the announcement by Crown Token Project, animation film consumers who have traditionally never had a say in the creation of film characters can now decide on the direction a media company takes.

Previously, creators/producers could only know of their viewers’ tastes after investing millions of dollars in producing a film and releasing it; which is too late to change the film to suit the viewers’ needs. By allowing fans to interact with the production team, producers will have an opportunity to produce films that are more inclined to the viewers’ taste.

Through the sale of its tokens, CROWN Token Project allows fans to vote on characters, movies, and animated features they feel passionate about with T&B Media Global films being the first animated films that CROWN Token holders will have the opportunity to vote on.

Besides having CROWN token holders on board, T&B Media Global has also partnered with Ideomotor, the animation production studio behind League of Legends.

CROWN token holders will start with selecting the film to contribute to and then choosing the character design for the film.

Besides voting on characters, movies, and animated features, token holders will also be able to stake their tokens and get USDT rewards.

The post Crown Token project grants token holders opportunity to vote on upcoming films appeared first on CoinJournal.

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Binance Card is coming to Brazil in the coming weeks

  • Binance partners with Mastercard Inc to launch a prepaid card in Brazil.
  • Binance Card offers a BNB cashback of up to 8.0% on eligible transactions.
  • Binance currently identifies Brazil as one of the largest markets it serves.

Mastercard Inc, on Monday, partnered with Binance to introduce a prepaid card in Brazil – the largest economy in Latin America. Its shares are still trading down in extended hours.

Binance Card to encourage wider crypto use

Binance expects its crypto card to help further bridge the gap between conventional banking and digital assets. According to Guilherme Nazar – General Manager at Binance for Brazil:

Payments is one of the first and most obvious use cases for crypto, yet adoption has a lot of room to grow. We believe Binance Card is a significant step in encouraging wider crypto use and global adoption.

Just months ago, Binance and Mastercard had partnered to launch the said offering in Argentina as Coin Journal reported HERE. Following beta testing, it will now be available broadly in Brazil in the coming weeks.

Mastercard has over 90 million merchants worldwide.

Binance Card offers lucrative cashbacks

Using the crypto card to make purchases will earn users a BNB cashback of up to 8.0% that will go directly to their Binance Funding Wallet. Nazar also said:

Brazil is an extremely relevant market for Binance and we’ll continue to invest in new services for local users, as well as contributing to the development of the blockchain and crypt ecosystem in the country.

Binance currently identifies Brazil as one of the largest markets it serves.

Users will be able to get their first card for free but re-issuance will cost them $25. The Binance Card will reportedly support multiple cryptocurrencies as well.

The post Binance Card is coming to Brazil in the coming weeks appeared first on CoinJournal.

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Fantom to release version 2 of fUSD stablecoin

  • fUSD v2 will allow for an on-chain fee system and help unlock Fantom to further institutional adoption.
  • The migration to fUSD v2 will allow for a predictable, budget-friendly on-chain fee system.
  • Liquidations of FTM positions will occur, although users will have ample time to sort such scenarios.

Layer-1 blockchain platform Fantom plans to migrate from fUSD version 1 to fUSD version.

The Fantom Foundation said in a blog announcement on 29 January that the stablecoin migration is a key goal as the developer team seeks to make the scalable next-gen blockchain more predictable and cost-effective for builders, partners and users.

 fUSD V2 will see Fantom users allocate fees in the native FTM or fUSD, with this making it easier to predict future costs based on the network usage. 

According to Fantom Foundation’s Andre Cronje, moving toV2 and allowing for an on-chain fee system will not only introduce consistency when it comes to planning, but also help unlock more institutional products.

FTM liquidations ahead of v2 launch

Fantom supports the use of FTM and fUSD in decentralised finance (DeFi), with users able to access services such as lending and borrowing. It’s for this reason that the Fantom Foundation has highlighted potential liquidations as migration from fUSD v1 begins.

The liquidations, Cronje pointed out, will occur in scenarios where the fUSD debt is either equal to or greater than the FTM or staked FTM (sFTM) backing it. In case of sFTM, Fantom says the stake will be unstaked immediately, with all rewards thereof claimed. 

The same cause of action will be taken against validators with less than the minimum stake, with this group unable to produce blocks or claim block rewards.

The timeline for v2 going live hasn’t been provided, but Fantom will help users as they look to close out positions ahead of the launch. This includes the ability to swap DAI for the Fantom stablecoin using a newly created swap tool. 

Users will get enough time to sort out themselves and benefit from advance notifications before any liquidation.

The post Fantom to release version 2 of fUSD stablecoin appeared first on CoinJournal.

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Crypto stocks poised as Bitcoin holds $23K ahead of FOMC

  • Bitcoin miners Core Scientific rose 33% as stocks of Bitfarms, Stronghold Digital, CleanSpark all ended the past week higher.
  • Coinbase and Robinhood shares also rose as Bitcoin broke above $23,000.
  • FOMC meeting is this week and the market reaction will be key to what next for Bitcoin and crypto stocks.

A number of crypto-related stocks are looking to extend gains notched in the past few days after closing in positive territory on Friday.

Among those to rip are share prices of crypto mining firms that had been struggling badly after reaching new all-time lows amid the crypto winter. 

This is happening even as Bitcoin price looks to push higher after holding above the $23,000 level over the weekend. A crucial macro news event to watch out for is the FOMC meeting this week.

Surge in Bitcoin price helped crypto stocks

Core Scientific (CORZ), the world’s largest publicly-traded Bitcoin miner, surged an impressive 33% on Friday, while crypto mining firm Digihost Technology (DGHI) saw its shares jump more than 11%.

Stocks of NASDAQ-listed miners Bitfarms (BITF), Stronghold Digital Mining (SDIG), Bit Digital (BTBT) and CleanSpark (CLSK) all ended the week in the green. Elsewhere, NYSE-listed Bit Mining and SOS ADR also rose.

Coinbase (COIN) and Robinhood (HOOD) stocks also traded higher, with the US-based crypto exchange’s stock soaring more than 15% on Friday. Coinbase‘s stock is up more than 73% in the past 30 days before markets open on Monday, 30 January. Robinhood shares ended the week 8% higher and were up nearly 28% over the past 30 days.

Bitcoin price, FOMC – what next for crypto stocks?

As noted, most of these publicly listed crypto companies saw their share prices soar alongside the positive price action of Bitcoin. But crypto has also largely correlated with stocks, with this week crucial in terms of the Federal Open Markets Committee (FOMC) meeting. 

On the positive side of things…

BTC/USD reached highs of $23,955 last week and is up more than 40% year-to-date. According to recent data from crypto analytics platform Glassnode, BTC’s recent upside momentum has the flagship digital asset’s price above three key on-chain metrics.

The breakout above $22,800 had Bitcoin above both the long term and short term cost-basis as well as Realized Price – the first time this has happened since 2020 COVID-19 induced crash. Also, the previous time when prevailing BTC price was above the three metrics was during the 2018/19 bear market.

On the flipside…

As covered by CoinJournal, Glassnode suggested last week that bulls managing to hold above the $22.4k level would aid sentiment and potential further gains. However, this week could see recent momentum derailed if investor reaction to the Federal Reserve’s FOMC minutes turns out to be negative. 

Although the market already expects a 25 basis point rate hike, some experts believe it would be a disaster for the markets if the Fed goes for a 50 basis point hike instead.

According to CoinGecko, Bitcoin was trading 1.1% down at 7:15 am ET on Monday as FOMC-related volatility likely began to set in across markets.

The post Crypto stocks poised as Bitcoin holds $23K ahead of FOMC appeared first on CoinJournal.