MicroStrategy buys more bitcoin, pushing holdings to nearly $6 billion: CNBC Crypto World

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, industry experts take a look back at U.S. regulatory advancements in digital assets over the past year and discuss what can be expected in 2024.

Chapters:
00:00 – CNBC Crypto World, Dec 2, 2023
0:30 – Bitcoin and ether climb
1:07 – The headlines
4:24- Crypto regulation in the U.S.

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MicroStrategy buys more bitcoin, pushing holdings to nearly $6 billion: CNBC Crypto World

Today bitcoin’s 2023 rally drives some of the stock market’s biggest gains data reveals crypto users lost nearly $2 billion to hack scams and exploits this year and we take a look back at regulatory developments for crypto in the US in 2023 and talk to experts about what we can expect in

2024 welcome to cnbc’s crypto world I’m Talia Kaplan major cryptocurrencies are in the green this morning as of noon Eastern Bitcoin climbed nearly 2% trading above the $43,000 Mark ether soared more than 6.5% trading above $2,300 salana however dropped nearly 6% but still traded above the $100 Mark

Salana has been the big outperformer this month up 78% compared to ether’s 15% rise now Traders are positioning for a catchup rally in eth as well as an upside from from the next ethereum upgrade in January and the potential approval of spot Bitcoin ETFs in the

US okay let’s take a look at the performance of crypto focused stocks this year as shares of coinbase micro strategy and the grayscale Bitcoin trust performed substantially better than Bitcoin Rising more than 300% in value Bitcoin minor Marathon digital soared more than 750 while Bitcoin rallied 160% for the

Year not only have those stocks outperformed the cryptocurrency but they’ve been among the biggest gainers across the entire US market according to fact set the four stocks tied to bitcoin were among the eight best performers when it comes to publicly traded us companies with a market value of at

Least $5 billion the crypto boom represents a major bounceback from last year when coin prices plummeted amid several scandals and bankruptcies including the collapse of FTX crypto related equities fell too now one of the biggest drivers for bit coin this year was an easing of the fed’s rate hikes

Which creates a more attractive case for riskier assets experts say buying was also sparked by the potential of the launch of spot Bitcoin ETFs in the US early next year amid growing expectations that the SEC will soon approve a spot Bitcoin ETF micro strategy said that it added more to its

Bitcoin Holdings this regulatory filing from today revealed that since the end of last month micro strategy acquired about for more than $615 million in cash Michael sailor the firm’s executive chairman posted on X today that micro strategy bought the Bitcoin at an average price of $ 42,1 110 per coin the

Recent purchase pushes micro strategy Holdings to more than1 189,000 Bitcoins which were acquired at an aggregate purchase price of approximately $5.9 billion bought at an average price of around $31,000 per Bitcoin the software firm started buying the cryptocurrency in 2020 that bet produced a more than 350% boost for investors this year

Outpacing almost all us companies valued at $5 billion or more as of noon Eastern micro strategy shares jumped 6% compared to the day before last crypto users lost nearly two billion dollar to hack scams and exploits in 2023 that’s according to data from web 3 firm defi which shows

The figure includes 455 exploits including fishing incidents and rug poles the database shows multi chain lost the most funds this year more than $230 million now we reached out to Defi and didn’t hear back right away but according to coind das def’s annual report notes that this year’s losses

Represent about half of last year’s not taking into account the $40 billion loss to the fall of stable coin issuer terraform Labs crypto lender Celsius and crypto exchange FTX the reduction is reportedly in large part due to the implementation of improved security protocols and overall decreased activity in the market

All right turning to crypto regulation for our main story the industry had high hopes that we’d see meaningful regulation from Congress in 2023 instead we saw peac meal action from the SEC while proposed crypto rules in the house failed to reach the floor for a vote so

Will we see progress in 2024 crypto world’s TAA mck spoke with experts in the nation’s capital to find out crypto regulation in the US is at a critical juncture it’s been a year since the spectacular collapse of FTX whose disgraced leader Sam bankman freed had just become one of the biggest political

Donors in the wake of that Scandal hopes were high that the industry would finally get the legal Clarity it had been asking for you would think that an FDX happens that’s a huge wakeup call for regulators and policy makers that we need Clarity on regulation instead 2023

Is marked by a regulatory Crackdown on crypto companies that’s been a dark cloud over the industry a peac meal collection of individual enforcement actions civil lawsuits and criminal cases crypto investors and businesses insist that to truly move forward they need the regulatory Clarity from Washington Congress has become very busy

With a lot that’s going on in the geopolitical world uh there’s a lot going on you know we had the debt issues we had the Speaker of the House issues and FTX and binance probably made some people even more cautious about the crypto markets and maybe they don’t want

To give it the legitimacy that it might get because of Regulation that clearity didn’t happen in 2023 but as we enter the new year and with Bitcoin soaring back above 40K as investors pour into the market again what does the industry think should be a priority for lawmakers

In 2024 especially as regions around the world lay out clear crypto guidelines chman McKenry and the house Financial Services committee has legislation that creates a path for uh C crypto Market structure and clearly delineates the jurisdiction between the cftc and the SEC what constitutes a digital commodity versus a digital security Congressman

McKenry also put forth stablecoin legislation that has gained Traction in the house 2024 is an especially critical year for these bills if they don’t pass by year end they’ll have to be reintroduced when Congress opens in 2025 but McKenry a powerful Ally for crypto won’t be there he’s retiring at the end

Of his current term now there’s also movement in the Senate where Senator Elizabeth Warren is pushing forward with a bill meant to crack down on crypto crime that bill has gotten push back from the industry but is also gaining co-sponsors the industry does believe that there should be more

Ways to fend off Bad actors though we need clear rules of the road here so that bad actors can’t access the space so that it’s easier to prevent uh some of these things from happening in advance rather than just coming you know after the fact to uh bring in

Enforcement actions and the C crypto lobbying machine is still pushing to make the US a crypto Hub I think we do have some work to do but you know I think the good news is we have so many people within the crypto industry that want to constructively engage with

Government and they’re working together uh with the blockchain association and with other organizations in Washington Working on crypto policy and so I’m really optimistic as we head into 2024 that we’re going to have um some of the most constructive dialogue we’ve had with government yet what we’ve been

Saying for for so long now that that regulation in the United States is critical to keep companies here you know we hear from companies with some regularity that it just it doesn’t make sense for them to serve us customers or to operate here in the United States chairman guinsler himself has

Acknowledged that uh it’s much harder to bring enforcement actions and to have oversight over exchanges and companies that are operating outside of the United States in 2023 big Brands like coinbase and ripple threatened to leave the us if legislators and Regulators failed to bring Clarity so far that hasn’t

Happened but more companies could shift priorities to expand overseas there is one area where the US has poised to expand crypto investment with the help of the SEC spot Bitcoin ETFs my sense is that uh we’ll see in in the next couple months uh an approval

From the SEC let’s say for the sake of argument they uh reject the spot uh ETF application and it goes back to the federal courts and they’re struck down again it’s it’s a pretty significant black bark on the agency to lose on kind of the same issue twice it it calls into

Question the Judgment of the agency at that point even if the SEC seeds ground on the ETF fight the agency seems largely undeterred from other crypto legal battles even after courts ruled against them in cases involving grayscale and ripple in 2024 the regulator plans to move ahead with enforcement actions against Kraken

Coinbase and binance that last one is of course separate from the multi-billion dollar settlement the world’s largest crypto exchange faced in November many people view binance’s historic settlement from just a couple weeks ago as an opportunity to finally close a painful chapter of crypto

History as it opens a new one if the SEC approves a Bitcoin ETF as many expect will happen soon it’ll allow a new wave of institutional money that’s been sitting on the sidelines to enter the market and it’ll be imperative to have Market structure and investor Protections in place but while lawmakers

Remain more engaged than ever Clarity around crypto regulation may not come in 2024 we’re going to see um a significant amount of litigation and where uh ultimately we’re going to continue to have some of the rules of the road being set by federal judges unfortunately for

The SEC uh theyve been on the losing side of a number of those decisions recently uh I would uh expect that Trend uh to continue but if it doesn’t we’re going to have substantial uncertainty in uh What uh crypto Market structure looks like uh in 2024 now that’s all for crypto world

Today but tomorrow you’ll hear from legal experts who offer insight into what region is winning the race when it comes to crypto regulation we look forward to seeing you tomorrow as we continue to take a look back at the state of crypto regulation in 2023