Review Category : Businesses

 
 

The Reverse Merger as a Shortcut to a Publicly-Traded Bitcoin Vehicle

Attempts to build an asset offering financial exposure to bitcoin for the average investor has interested global entrepreneurs for years, yet an SEC-registered product that can be traded easily from a standard portfolio remains to be seen. Given the regulatory scrutiny such an instrument would be subject to, the most efficient way to access public markets with a bitcoin asset may be a known subversion of the standard issuance process: the reverse merger. In July 2013, Winklevoss Capital brought significant attention to this topic when they filed the S-1 for an ETF to track the price of bitcoin. The fund …

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ASICMiner Share Price Doubles Ahead of Gen 3 Tapeout Announcement

ASICMiner, one of the first companies to successfully deploy bitcoin ASIC mining hardware in 2013, has seen its share price double over the last month. The gains come ahead of the expected Jan 20 tapeout date for ASICMiner’s 3rd generation hardware indicated by the companies CEO in a December announcement. As multiple consumer ASIC companies prepare to ship inventory and private mining operations increase in scale, often with equal or superior hardware, meeting schedule expectations will be paramount to ASICMiner’s future. As one of the first successful ASIC producers, AM was able to maintain a significant hardware advantage through mid-2013, …

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Mt. Gox Seizures Linked to Silk Road in Fed Testimonies

Last summer, news that federal agents had seized a combined $5M from accounts owned by Mt. Gox roiled bitcoin markets. The warrants enabling the action cited improper filings when the company opened its bank accounts, including unlicensed operation of a money service business. Yet, written testimonies from federal regulators for the recent Senate hearings on digital currencies indicate the seizures were actually part of the much larger crackdown on online narcotics marketplace Silk Road – insight that presumably had to remain hidden at the time of the seizures due to the ongoing investigation. Experienced market participants will recall that before …

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Bitcoin’s Sixth Year Likely Driven By Institutional Participation

Happy Genesis Block Day to all of our readers. Today marks the five-year anniversary of the first bitcoin block ever mined, ushering in not only a new digital currency, but also the functional implementation of a potentially revolutionary value transfer technology. Over the past year, market participants have witnessed tremendous growth cycles driven by regional catalysts around the globe – from the Cypriot financial crisis in March to the Chinese exuberance over the last quarter. With increasing interest coming from institutional finance of late, it appears the most significant wave in bitcoin’s sixth year may be oriented not geographically, but …

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Trading Volume Indicates $1M+ Revenue to BTC China in First Week With Fees

One week ago today, rumors began to hit the market of Chinese payment processors no longer being able to serve bitcoin exchanges. BTC China and OKCoin, the leading XBT / CNY exchanges by volume for much of the past few months, also reinstated trading fees on the same day. Those factors combined have led to reduced trading volume at those exchanges, as well as a glimpse into why bitcoin companies have attracted so much venture capital in 2013. On September 24, BTC China temporarily removed trading fees from their exchange. Bitcoin’s popularity in China ballooned dramatically shortly thereafter as other …

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[TGB] Market Dashboard Overhaul: New Exchanges, Alerts, Conversion Tools

This morning we launched a series of upgrades to our Market Dashboard. Your feedback has been crucial in prioritizing feature improvements and we hope you will continue to send us your thoughts at [email protected]. Additional Exchanges and Conversion Given the increasing distribution of global trading volume, the Market Dashboard now covers the four largest bitcoin exchanges including Bitstamp, Mt. Gox, BTC China and BTC-e. A 24-hour volume overview was added as well to help you stay abreast of shifting market liquidity. We’re in the process of adding even more exchanges – let us know what you’d like to see by …

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ASICMiner Gen3 Hardware Announcement Sees Muted Market Reaction

Friedcat, the pseudonymous CEO of ASICMiner, made his first direct announcement in approximately a month last week, offering updates on product sales and upcoming hardware developments. Despite signs of progress towards upgraded hardware for the industrial mining company, investors have proven unimpressed, leaving the company’s stock price near historic lows. ASICMiner was one of the first companies in the world to reliably sell and deploy bitcoin mining ASICs, but has long since lost that market leadership – a title it is working to reclaim. Still mining with first generation 130nm ASICs, the company has announced efforts towards second and third …

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Familiar Price Gains, Updated Infrastructure: A Look at the Bitcoin Economy (Part 2)

As initially discussed in Part 1 of this series, bitcoin’s exchange rate has garnered significant attention for its recent climb, but far less visible is the dramatic growth in the infrastructure underlying bitcoin economy itself. In continuing with the theme of Part 1, this report will look at the economic evolution behind bitcoin’s growth since the last time exchange rates climbed this dramatically. Adoption In the beginning of this year, the notion of a business accepting payments in bitcoin – particularly at a physical store – was relatively unheard of. When bar/nightclub EVR (co-owned by Charlie Shrem of BitInstant) in …

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Coinsetter Launches US Bitcoin Exchange, Cross-Exchange Liquidity Coming Soon

This morning, US-based Coinsetter launched their much-anticipated bitcoin trading platform. The company was one of the first in the space to raise venture capital, closing a $500K round in April co-led by Barry Silbert’s Bitcoin Opportunity Fund and Tribeca Venture Partners. As an exchange looking to serve both US and international clients, Coinsetter is taking a unique approach to navigating the regulatory landscape and offering deep liquidity for its customers. The company was founded by Jaron Lukasiewicz, previously an Associate at The CapStreet Group, a private equity firm in Houston, Texas. Coinsetter was initially focused on offering margin trading and …

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itBit Launches Bitcoin Exchange with $5.5M in Funding

Today itBit, a global bitcoin exchange, announced their official launch as well as the completion of their second round of funding. The company raised a total of $5.5M, with the most recent round closed over the last month for $3.25M. itBit is opening trading today for non-US institutional and retail traders, as well as some US institutional traders. The exchange is headed by Rich Teo, who previously worked as a Senior Analyst at Cedar Hill Capital Partners and Citigroup as an M&A analyst before that. itBit has offices in Singapore, Shanghai and New York, and is looking to serve the …

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