Public Keys is a weekly review from Decrypt that highlights the most important public crypto companies.
This week: CoreWeave and Core Scientific set to formally announce a partnership, Bitcoin ETFs continue to gain popularity, and BTC and Dogecoin miners migrate to the Solana platform, while the largest holder of Bitcoin Treasuries takes a break from its constant buying.
Bitcoin miner Core Scientific and recently publicly traded AI giant CoreWeave have decided to join forces in a stunning $9 billion deal.
Unfortunately, they have no plans to change their ticker to DBZ.
The Bitcoin miner’s shares trade on the Nasdaq under the ticker CORZ, while CoreWeave, a new player in the AI market, is also listed on the exchange under the ticker CRWV.
The deal between the two companies looks set to be one of the most significant M&A deals in the crypto space, but investors were more optimistic about it earlier in the week than they are now.
Source: FinTel.io
When the news broke on Monday, CORZ shares rose to $15.71. However, shares of the newly acquired bitcoin miner have since fallen to $12.51. That’s not exactly the kind of trend miners typically see around the same time that bitcoin is pushing for new all-time highs. And CRWV, which topped $160 on Monday, has since fallen to $125.84.
Needham’s John Todaro was one of six analysts to downgrade Core Scientific this week. Macquarie analysts Paul Gooding and Marnie Lysaght cut their rating on CORZ to neutral from overweight, while maintaining their $15 price target.
They believe this is partly because investors already knew about the deal in advance and began pricing it in before the official announcement.
“Prior to this, both tickers had already displayed quotes indicating a high probability of a deal following media reports,” they wrote in a note provided to Decrypt . The analysts added that since this is a final, rather than non-binding agreement that has already been approved by Core Scientific CEO Adam Sullivan, it is unlikely that a better offer will emerge.
Spot Bitcoin ETFs saw net inflows of $1.17 billion on Thursday, marking the second-biggest day for the funds since their inception.
It’s this institutional momentum that has many analysts excitedly pointing to Bitcoin’s waning volatility. And it’s no surprise that BlackRock’s iShares Bitcoin Trust, or IBIT, accounted for nearly half — $448.5 million, to be exact — of the funds’ cash inflows.
IBIT has yet to relinquish its crown as the fastest-growing ETF in the industry’s 32-year history. The fund’s assets under management have surpassed $80 billion, about a month after it surpassed $70 billion.
Shares of BIT Mining have risen sharply after the Bitcoin and Dogecoin miner announced a $300 million investment in Solana assets.
BIT Mining, which trades on the New York Stock Exchange under the ticker BTCM, had a generally quiet week. However, after announcing its move to Solana on Thursday, its shares opened at $7.01, after closing at $2.42 on Wednesday.
What has risen hasn’t come crashing down completely, but BTCM shares have lost some of their sheer joy. At the time of writing, they are trading at $4.34, up 83% in the last 5 days but down 29% from yesterday’s impressive performance.
While the announcement did catch the attention of Solana’s research community, it wasn’t enough of a push for HC Wainwright, the sole analyst firm covering the stock, to issue a new outlook. The firm maintains its “neutral” rating on BTCM, which began in 2022.
Yes, even Strategy’s “Buy Bitcoin” button is getting a temporary rest. At least it did last week, when the weekly BTC purchase was missed for the first time in three months.
Bitcoin giant Strategy has increased its BTC valuation to $70 billion on the possibility of Bitcoin rising to $120,000 by the end of this week.
Rather than adding more of the world’s first cryptocurrency to its holdings, Strategy has issued a new $4.2 billion STRD preferred stock offering.
Strategy founder and chairman Michael Saylor has previously called STRD’s preferred shares the company’s “fourth gear” because they offer investors high yields but are less sensitive to Bitcoin price fluctuations.
Source: cryptonews.net
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