Coinbase Shuns Saylor's Bitcoin Strategy, Acquires Deribit for $2.9B
Coinbase Global, the leading cryptocurrency exchange, has taken a different path from Michael Saylor's popular Bitcoin buying approach. Meanwhile, the stock market sees new developments and investments.
Michael Saylor's firm, Strategy, has significantly invested in Bitcoin, contributing to its price surge past the $100,000 mark. Inspired by this strategy, several firms are attempting to replicate it. One such firm, Twenty One Capital, is set to launch by an affiliate of Cantor Fitzgerald, Tether Holdings, and SoftBank Group.
Coinbase, on the other hand, has decided against Saylor's approach due to high risk. Instead, it has bought $153 million worth of cryptocurrency, primarily Bitcoin, during the March quarter, with total holdings valued at $1.3 billion. The company is also set to join the S&P 500 index, a testament to investor confidence in its stability and future prospects.
Rho Protocol is addressing the overlooked interest rate dynamics in the crypto market, particularly perpetual funding rates. Next Technology Holding's shares surged 600% after expanding its Bitcoin holdings to 5,833 from 833. Bitcoin miners and publicly traded firms are offering diverse avenues for Bitcoin exposure, such as convertible bonds and preferred stocks.
Coinbase Global has agreed to pay $2.9 billion to acquire Deribit, the largest exchange for Bitcoin and Ether options, to expand into the derivatives market.
While Michael Saylor's Bitcoin buying approach gains traction, Coinbase Global is exploring other avenues for growth. The stock market today continues to evolve, with new players and strategies emerging, reflecting its dynamic and innovative nature.
