The Breakdown First Five - Friday, June 7, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Kitty’s Big Day

Roaring Kitty continues to capture the attention of the market, riding his gigantic Gamestop position into the end of the week. The stock is now up more than 100% since the Monday open and spiked 35% in overnight markets. Kitty’s position is now up $400M hitting $586M at yesterday’s close. E-Trade hasn't shut him down yet. Robinhood says they are prepared for a surge. Is Roaring Kitty about to parlay a $50,000 bet into becoming a retail trading billionaire?

4. ETF Inflows Keep Rolling

The Bitcoin ETFs have had their biggest week since mid-March, capturing $1.7B so far. Despite high inflows Bitcoin is still below all time highs puzzling many investors. Alongside sky high ETF inflows, CME futures positioning is showing record shorts for leveraged funds. This suggests that a huge carry trade is underway, rather than outright bullish positioning. 

3. Mini-Microstrategy

Semler Scientific are pushing the chips in on their Microstrategy-style Bitcoin plan. The obscure medical device company has now bought around $60M worth of Bitcoin, representing a conversion of most of their excess cash. The firm has now announced a plan to raise $150M in debt to buy more Bitcoin. The small cap company’s stock is now up 25% since their first Bitcoin purchase but priced at a huge multiple of the value of their Bitcoin holdings. 

2. Kraken Raising for IPO

Kraken is reportedly looking to raise $100M for pre-IPO funding. The exchange is aiming to close the round by the end of the year. Kraken is on the short list of crypto companies hoping to go public in the US soon, with Circle being the other big candidate and a Galaxy Digital uplisting also on the cards. Next year could see a rush of new crypto listings, particularly if regulatory enforcement issues dissipate. 

1. Robinhood Acquiring Bitstamp

Robinhood has agreed to acquire UK based exchange Bitstamp for $200M. The deal signals an acceleration in Robinhood’s plans to expand globally and double down on their crypto business. Founded in 2011, Bitstamp is one of the oldest crypto exchanges and one of the largest in operating in Europe. Many noted the deal was struck at a suspiciously low valuation relative to current volumes, which could be an indication of regulatory struggles ahead.