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  • Avalon Labs evaluating a Bitcoin-backed public debt fund

    Avalon Labs evaluating a Bitcoin-backed public debt fund

    Avalon Labs evaluating a Bitcoin-backed public debt fund

    • Avalon Labs is planning to introduce a Bitcoin-backed public fund under SEC Regulation A.
    • Avalon Labs aims to bridge traditional finance and crypto, expanding Bitcoin’s utility.
    • Avalon’s AVL token has been listed on Bybit, boosting liquidity and community governance.

    Avalon Labs has decided to explore the uncharted territory of Bitcoin-backed lending products by leveraging SEC’s Regulation A framework.

    Barely a day after Avalon Labs announced the listing of its native token, AVL, on Bybit’s Spot trading platform, the company has announced it is considering launching a Bitcoin-backed public fund under the SEC Regulation A.

    The timing of this announcement coincides with a period of economic uncertainty, with rising inflation and evolving Federal Reserve policies influencing investor sentiment.

    By providing a structured entry point into Bitcoin investment for retail investors, Avalon might just lower the entry barriers for traditional investors, thereby expanding Bitcoin’s utility and acceptance.

    Expanding Bitcoin’s reach into traditional finance

    Avalon Labs’ move is seen as an attempt to open the door for massive adoption of Bitcoin-backed products, making them accessible not just to crypto enthusiasts but also to traditional investors. The initiative aims to position Bitcoin (BTC) not just as a store of value but as a dynamic financial instrument capable of generating yield through DeFi opportunities.

    By using Regulation A, often dubbed a “mini-IPO,” Avalon Labs seeks to bypass the complexities of a full SEC registration while ensuring compliance and transparency. This approach, commonly utilized by real estate investment trusts (REITs) and private funds, could provide a structured investment vehicle for retail investors, thus bridging the gap between traditional finance and the burgeoning crypto market.

    Avalon’s native token AVL debuted on Bybit on February 12

    Parallel to this financial exploration, Avalon Labs has also solidified its token ecosystem with the listing of AVL on Bybit. This move not only enhances liquidity but also introduces the token to a broader audience.

    AVL serves as the governance token, enabling community-driven decision-making, while USDa, the Bitcoin-backed stablecoin, offers a stable, bank-independent currency for on-chain transactions.

    The integration of AVL into Bybit’s platform, coupled with the potential launch of a public debt fund, underscores Avalon Labs’ strategic approach to expanding its footprint in the DeFi and traditional finance sectors.

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  • Bitfarms agrees to buy Stronghold Digital for $175M in stock and debt

    Bitfarms agrees to buy Stronghold Digital for $175M in stock and debt

    Bitfarms agrees to buy Stronghold Digital for $175M in stock and debt
    • Bitfarms to acquire Stronghold Digital for $175M in stock and assumed debt.
    • Bitfarms’ stock fell 8%, while Stronghold’s rose 60% following the news.
    • Riot Platforms, holding 19% of Bitfarms, previously attempted a takeover in June.

    In a significant development within the cryptocurrency mining sector, Bitfarms (BITF), a leading Bitcoin mining company, has announced its acquisition of rival Stronghold Digital (SDIG) for $175 million. The deal, which includes $125 million in stock and the assumption of $50 million in debt, marks a strategic move by Bitfarms as it continues to navigate a competitive industry landscape.

    The acquisition terms specify that Stronghold shareholders will receive 2.52 Bitfarms shares for each Stronghold share they hold. This represents a 71% premium based on Stronghold’s 90-day volume-weighted average price on Nasdaq as of August 16.

    The stock-for-stock transaction reflects Bitfarms’ aggressive growth strategy, despite recent challenges and market volatility.

    Giving Stronghold Digital a lifeline

    The deal comes on the heels of Stronghold’s announcement in May that it was exploring strategic alternatives, including a potential sale.

    Stronghold, based in New York, has been actively considering its options in response to the evolving market conditions.

    The acquisition provides Stronghold with a lifeline while enabling Bitfarms to consolidate its position in the market.

    Riot Platforms abandoned Bitfarms takeover bid

    Bitfarms’ move to acquire Stronghold is particularly noteworthy as it comes at a time when the company is also contending with an ongoing approach by Riot Platforms (RIOT).

    Riot, which holds nearly 19% of Bitfarms, previously attempted to acquire the Toronto-based company in June. However, Riot chose to abandon the bid temporarily, opting instead to overhaul Bitfarms’ board of directors.

    This strategic manoeuvre has kept Bitfarms in the spotlight, as Riot’s interest in the company is likely to continue influencing its future actions.

    The market reaction to the acquisition has been mixed, with Bitfarms’ stock dropping nearly 8% in pre-market trading, while Stronghold’s shares surged by about 60%.

    This acquisition underscores the ongoing consolidation within the cryptocurrency mining industry as companies seek to strengthen their positions in a rapidly evolving market.

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  • Why is the crypto market up today? Imminent debt ceiling vote boosts the market

    Why is the crypto market up today? Imminent debt ceiling vote boosts the market

    Key takeaways

    • The cryptocurrency market is up by more than 2% today after underperforming for the best part of May.

    • Bitcoin topped the $28k mark for the first time this month.

    • The rally comes as President Biden and the House leadership reached an agreement on the debt ceiling.

    Crypto Market Cap Reaches $1.16 Trillion

    The cryptocurrency market performed well over the weekend, with most coins and tokens trading in the green zone.

    For the first time this month, the total cryptocurrency market cap reached the $1.16 trillion threshold for the first time this month. 

    The rally comes following an agreement between President Biden and the House leadership on United States’ debt ceiling. President Biden and congressional Republican Kevin McCarthy reached an agreement to suspend the federal government’s $31.4 trillion debt ceiling over the weekend. 

    However, the deal still has to pass through Congress later this week. The vote is expected to take place on Wednesday before the United States runs out of money to pay its debts in early June.

    The deal sparked optimism amongst investors that the United States would not default on its debt. If the US default on its debt, a recession would likely follow, and this could see the financial markets experience massive losses. 

    Bitcoin Rallies To $28k 

    Bitcoin, the world’s leading cryptocurrency by market cap, touched the $28k level for the first time in three weeks. Bitcoin started May trading above $29k per coin but plunged to a low of $26,008 last week. At press time, the price of Bitcoin stands at $27,953 per coin. 

    The leading cryptocurrency is now slowly recovering, thanks to the positive news from the United States. 

    Ether, the second-largest cryptocurrency in the world, also moved past the $1,900 level for the first time in weeks, adding more than 3% to its value in the last 24 hours. At press time, the price of Ether stands at $1,904. 

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  • LTC, ARB and MATIC price outlook amid US debt limit deal

    LTC, ARB and MATIC price outlook amid US debt limit deal

    • LTC bulls need to break above $93, a key hurdle below the psychological level of $100.
    • MATIC must reclaim $1 to target the $1.30-$1.50 range, or risk dip to $0.75.
    • Elsewhere, ARB is near a key resistance level as Arbitrum price jumps 3.9% amid the market’s reaction to US debt ceiling news.

    The US has reached a “tentative deal” on its debt limit crisis after a week of high uncertainty. With the news of the deal seeping through the markets, cryptocurrencies reacted slightly positively as Bitcoin and Ethereum prices rose above $27k and $1.8k respectively.

    The outlook was also visible across the top 10 altcoin market, with sentiment relief showing as Litecoin (LTC), Arbitrum (ARB), and Polygon (MATIC) moved up. Even then, markets remain largely weak as May comes to a close.

    Here is what a respected crypto analyst has predicted for LTC, ARB and MATIC.

    Litecoin price prediction: $93 key to LTC bulls

    In March, LTC creator Charlie Lee offered a huge Litecoin price prediction. Pointing to the 14th ranked cryptocurrency (by market cap today), Lee said Litecoin price could rise to 0.0125 BTC in a new bull cycle. He also believed a downside for LTC could find support at 0.0025 BTC.

    The current LTC price is above this latter level as it trades near $89.40 or 0.0032 against bitcoin. In recent weeks, analysts have pointed to Litecoin’s upcoming halving as a likely trigger for fresh upside momentum.

    According to crypto analyst Michael van de Poppe, bulls need to break above a key resistance at $93 on the higher timeframe. The psychological $100 level would then be in sight as buyers eye a halving rally, he tweeted. 

    “Many squigglies on this chart, but higher timeframe resistance is at $93. Currently, support found at $82 and a strong bounce -> weekly candle looks good. Next week breaking through $93 and the Halving rally might start.”

    Polygon price prediction: MATIC needs to break above $1 again

    MATIC has traded lower since March, with an attempt to flip higher running into rejection in April as price fell below $1.00 (CoinJournal highlighted the subsequent price movement here). Although it remains below the dollar, bulls might have the upper hand if they reclaim control above $0.95.

    Currently, MATIC/USD is around $0.92. According to van de Poppe, MATIC has bounced well above this key area since its NFT announcement during the F1 Monaco GP. Can bulls build momentum from here?

    “I really want to see it flip $0.95, then we can accelerate towards $1.30-1.50. If that’s not the case, then short is activated and longs can be taken at $0.75,” the analyst said in reply to one of the requests for altcoin analysis.

    Arbitrum price prediction: ARB is near key resistance

    Arbitrum, which was trading at $1.20 and 3.9% up in the past 24 hours at the time of writing, needs to hold above the $1.18 level to give bulls an upside boost. That could aid momentum to $1.30, van de Poppe noted.

    “Again, into resistance. This means, entries are available at $1.10. If it doesn’t clearly break & flip the resistance at $1.18, I’d assume shorts are triggered when falling back sub $1.18. Otherwise, long continuation trade towards $1.30.”

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