Despite Bitcoin (BTC) recently dropping below $90,000, raising concerns about the potential end of the bull market, significant capital continues to be injected into cryptocurrency companies. This ongoing inflow signals persistent institutional confidence in the digital asset sector.
Republic Technologies has become the latest entity to add Ether (ETH) to its treasury, securing $100 million in financing. Notably, the terms of this deal are exceptionally favorable for the industry, structured as a zero-interest convertible note. This arrangement means Republic neither incurs interest payments nor faces the risk of default on missed payments, a rare structure within crypto financing.
"Republic's raise, while unique, probably won’t spark off a new normal for how funds are raised in the crypto industry, though it is a sign of a maturing market that new forms of money raising are being seen, and that is the trend that is likely to continue," Komodo chief technology officer Kaden Stadelmann told Cointelegraph.
In parallel, crypto exchange Kraken has successfully raised $800 million at a valuation of $20 billion as it prepares for a public offering. A substantial portion of this investment, $200 million, came from Citadel Securities.
This edition of Crypto Biz examines these developments and other key stories from the business side of digital assets.
Republic Technologies Secures $100 Million for Ether Holdings
Republic Technologies has raised $100 million through a zero-interest convertible note facility. The company intends to use these funds to expand its Ether holdings. This financing structure is designed to minimize shareholder dilution while enabling the company to build a substantial position in the digital asset.
The absence of interest payments on these notes eliminates the need for Republic to spend cash on debt servicing and removes the risk of default due to missed interest payments.
Republic contrasted its financing approach with that of other Ether-focused companies. For example, BitMine Immersion's recent $365 million raise included 200% warrant coverage, a level that could lead to significant shareholder dilution if the warrants are exercised.
Industry data indicates that, in addition to Republic, there are 18 other publicly traded companies that currently hold Ether in their treasuries.
MicroStrategy Acquires Additional Bitcoin Amidst Market Downturn
Business-intelligence company MicroStrategy, now a significant Bitcoin treasury holder, made headlines this week by announcing the acquisition of an additional 8,178 BTC for $835.6 million. The average purchase price was $102,171 per Bitcoin, marking the company's largest purchase since July.
MicroStrategy's current holdings now exceed nearly 650,000 BTC, solidifying its position as the world's largest corporate Bitcoin treasury by a considerable margin. The company is navigating the current Bitcoin market downturn. A recent report from Matrixport suggests that MicroStrategy could still be on track for S&P 500 inclusion by December.
Meanwhile, the company's share price has experienced significant pressure, falling to approximately $207 from a high of $474.
Tether Expands into Commodity Lending Business
Stablecoin issuer Tether is expanding its financial activities beyond its primary USDt (USDT) operations. The company is increasing its involvement in the commodity-trade lending business, having already deployed $1.5 billion in credit across both cash and its stablecoin.
Tether CEO Paolo Ardoino indicated to Bloomberg that the company intends to "expand dramatically" into financing commodity trades, encompassing goods like agricultural products and oil. This strategic move is being executed through Tether's newly established Trade Finance Unit.
Tether has already carved out a significant presence in the commodities market with its tokenized gold product, Tether Gold. This product has seen growing popularity, particularly during the current bull market. Ardoino also confirmed that Tether possesses over 100 tons of physical gold bullion.
Kraken Files for Initial Public Offering in the United States
Cryptocurrency exchange Kraken has officially initiated the process for a public listing by submitting a confidential draft S-1 registration statement to the US Securities and Exchange Commission. This filing outlines the proposed initial public offering of its common stock.
This development follows closely on the heels of Kraken's announcement that it had raised $800 million through two funding rounds, valuing the company at approximately $20 billion. Notably, Citadel Securities was among the investors, contributing $200 million to this funding.
As the S-1 filing was made confidentially, Kraken has not yet disclosed specific details regarding the offering's size, the anticipated share price, or the exchange where its stock will be listed.