Quote of the week: “Voters are very pro-technology, pro-innovation and they […] might not know the specifics of crypto legislation or tech legislation writ large, but they do have kind of an intuitive sense of […] what policy thinking that moves in the direction of embracing technology and innovation would look like.” – Martin Dobelle, one of the three co-founders of political software company Engage. Source:
Alpha Sigma Capital’s CEO, Enzo Villani, addresses FTX’s collapse in his letter to LPs and research subscribers.
Alpha Sigma Capital Research launches “Ask Me Anything” Series with our first guest James Haft, Chairman, DLTx, and Simon Campbell, COO, DLTx on November 10, 2022.
A Clash Between Billionaires: Binance Agrees to Acquire FTX: On November 8, Binance founder Changpeng Zhao (“CZ”) and FTX founder Sam Bankman-Fried announced the deal on Twitter that Binance agreed to acquire rival FTX after the exchange supposedly faced a liquidity crunch. The terms of the deal were not disclosed. Mr. Bankman-Fried stated in a tweet, “things have come full circle, and FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for FTX.com (pending DD etc.)…” Source: Wall St. Journal
Binance Pulls Out of FTX Deal: Less than 48 hours after Binance signed a non-binding deal with FTX, the company announced its decision to not pursue the potential acquisition. A series of tweets by Binance stated that its decision was based on “reports regarding mishandled customer funds and alleged US agency investigations.” Source: Cointelegraph
The FTX Saga: The crypto markets are experiencing turmoil, which was in part caused by the news surrounding FTX and its liquidity crunch. Since Binance pulled out of the deal on November 9, the cryptocurrency markets responded and investor sentiment turned fearful; Bitcoin’s price dropped to a multi-year low of $15,600. Sam Bankman-Fried, head of FTX, reportedly asked investors for $8 billion in emergency funding to cover the “liquidity crunch.” Mr. Bankman-Fried was seeking to raise up to $4 billion from investors and said that he would cover the remaining amount with debt financing and his own personal fortune. On the same day, FTX’s website went down for two hours and when it was brought back online it came with a warning strongly advising against depositing and stating that the exchange was unable to process withdrawals. Source: Cointelegraph
United States DOJ Seizes $3.36 Billion of Bitcoin: The United States Department of Justice announced that law enforcement seized $3.36 billion of bitcoin that was stolen from the Silk Road online marketplace over a decade ago. This is the second-largest seizure in United States’ DOJ history. Source: CNBC
JPMorgan Executed its First DeFi Trade on a Public Blockchain: In the first week of November, the markets saw the institutionalization of DeFi markets; international banks and financial institutions, including JP Morgan and DBS Bank, executed their first DeFi transactions. Source: Cointelegraph
Gryphon Digital Mining, Inc. Update: Gryphon Digital Mining, Inc., a leading net carbon-neutral bitcoin miner, continues to lead the way in operational efficiency. For the month of September, for instance, the company mined approximately 80 bitcoin-equivalent coins from its self-mining operations with an average hashing power of 656 PH/s. For the month of September, the company’s bitcoin efficiency rating was 122BTC/EH. The company’s production results placed it first among a peer group of companies. Source: Gryphon Digital Mining
Fair Disclosure: Alpha Sigma Capital Fund LP is an investor in Gryphon Digital Mining.
And, that’s a wrap!