The Breakdown First Five - Tuesday, October 8, 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. Metaplanet Speeds Up

The Japanese hotel chain turned Bitcoin investment company has doubled down on their Bitcoin buying. The firm bought another $7M worth of Bitcoin on Monday. Added to last Monday’s buy, the firm has now added 50% to their Bitcoin holdings in the past week. With just $40M worth of Bitcoin in their treasury, they’re a long way off Microstrategy. Still, their accumulation has stepped up a gear in Q4. Will the DCA continue next week?

4. Bahrain’s First Bitcoin Fund

The National Bank of Bahrain has announced a new Bitcoin fund that will be made available to accredited investors across the Middle East. The fund will be a structured product, with investors accepting a capped upside in exchange for 100% downside protection. While this isn’t the sovereign wealth fund announcement we’ve all been waiting for, more institutional grade products is a step in the right direction.

3. FTX Plan Approved

The FTX bankruptcy plan has been approved, paving the way for distributions to begin later this year. The judge rejected all objections. He agreed that FTX couldn’t distribute crypto in-kind as they simply don’t have it. He agreed that FTT is worthless despite recent memecoin-style pumps. Between $1B - $3B is expected to go to small creditors in Q4, with the rest of the $16B to be distributed to larger creditors and distressed claims buyers in the first half of next year.

2. The Microstrategy Divergence

Stocks down. Bitcoin down. Microstrategy up big. MSTR surged to a six month high on Monday, falling just short of all time highs. Something other than the Bitcoin on the balance sheet is being priced in. Bitcoiners believe it’s the proven ability to accumulate. Stock traders are simply buying momentum, but MSTR is gathering a cult following. Others have more esoteric valuations. Either way, MSTR is outperforming everything right now.

1. Gallagher for SEC?

According to Politico, Robinhood CLO Dan Gallagher is at the top of the list as Trump’s SEC Chair. Gallagher had previously served as an SEC Commissioner during the Obama administration. This seems extremely plausible, with one source stating Dan would be a “natural choice." Gallagher is in favor of modifying existing rules to fit crypto and establishing a functional licensing scheme.