Nasdaq-listed business intelligence firm MicroStrategy has reported a $24.1 million impairment charge on its cryptocurrency portfolio, which is now worth an estimated $4.4 billion after the firm bought more BTC in July, bringing its total to 152,800 coins.

Coinbase’s shares have outperformed the market after the U.S. District Court’s ruling on July 13 that Ripple Labs didn’t violate securities laws by selling XRP, which a federal judge said isn’t necessarily a security. Another judge, however, has recently disagreed with the Ripple ruling.

GameStop has announced a halt in its cryptocurrency wallet service and removed its iOS and Chrome Extension from the market in response to “the regulatory uncertainty of the crypto space.”

Top stories in the Crypto Roundup today:

• MicroStrategy’s Bitcoin Holdings Reach $4.4 Billion
• Judge’s Criticism of Ripple Decision Could Hurt Coinbase’s Defense Against SEC: Berenberg
• GameStop to Shut Down Crypto Wallet Service, Citing Legal Uncertainty
• BITO ETF Dominates Digital Asset Investment Products Volumes

MicroStrategy’s Bitcoin Holdings Reach $4.4 Billion

Nasdaq-listed business intelligence firm MicroStrategy has reported a $24.1 million impairment charge on its cryptocurrency portfolio, which is now worth an estimated $4.4 billion after the firm bought more BTC in July, bringing its total to 152,800 coins.

In its earnings statement for the second quarter of the year, MicroStrategy revealed the impairment charge and ongoing BTC accumulation, and reported a positive trajectory for its business with a net income of $22.2 million.

The figure comes in stark contrast to the loss of nearly $1.1 billion it suffered during the same period in the previous year, when it also reported a nearly $1 billion impairment charge on its Bitcoin holdings.

In the firm’s latest earnings statement its Chief Financial Officer, Andrew Kang, noted MicroStrategy kept buying Bitcoin “against the promising backdrop of institutional interest, progress on accounting transparency, and ongoing regulatory clarity for Bitcoin.”

The company's founder and chairman, Michael Saylor, has been an ardent Bitcoin supporter since he initiated the firm's cryptocurrency purchases in August 2020. In a statement underscoring the firm's philosophy, Saylor declared that MicroStrategy's strategy is rooted in a consistent, transparent, and responsible approach to buying and holding Bitcoin.

Judge’s Criticism of Ripple Decision Could Hurt Coinbase’s Defense Against SEC: Berenberg

Coinbase’s shares have outperformed the market after the U.S. District Court’s ruling on July 13 that Ripple Labs didn’t violate securities laws by selling XRP, which a federal judge said isn’t necessarily a security. Another judge, however, has recently disagreed with the Ripple ruling.

According to an investigative report recently released by the investment bank, Berenberg notes that U.S. District Judge Jed Rakoff of the Southern District of New York contested Judge Torres’ differentiation between institutional sales and sales to retail investors on cryptocurrency exchanges.

Rakoff characterized this as a flawed interpretation of the Howey test, which is commonly utilized to ascertain if an asset classifies as a security, according to analysts headed by Mark Palmer.

The discord generated by Rakoff's rejection could potentially convolute Coinbase's acknowledgement of the initial ruling in its own ongoing legal battle with the U.S. Securities and Exchange Commission, the bank’s analysts noted, saying Judge Rackoff explicitly referenced Judge Torres’ ruling in his own, saying that the Howey Test does not differentiate between buyers.

Another argument Coinbase is employing against the SEC’s case is the major questions doctrine, a principle that originated from a Supreme Court ruling designed to curtail agencies from exceeding their designated authority, according to the report. Terraform Labs previously invoked this doctrine in its own defense, but Judge Rakoff dismissed its use.

Berenberg upheld its hold rating on Coinbase shares, assigning a price target of $39, reflecting the bank’s perspective that the stock is “uninvestable” for the near term.

GameStop to Shut Down Crypto Wallet Service, Citing Legal Uncertainty

GameStop has announced a halt in its cryptocurrency wallet service and removed its iOS and Chrome Extension from the market in response to “the regulatory uncertainty of the crypto space.”

The U.S.-based retailer made headlines last year when it announced plans to launch its own non-fungible token (NFT) marketplace, which coupled with the cryptocurrency wallet would allow users to store their crypto and NFTs while interacting with the Ethereum network.

It seemed at the time that GameStop's entry into the crypto realm could potentially boost web3 games such as Gods Unchained and Illuvium, both operating on Immutable X, an Ethereum Layer-2 solution.

GameStop’s move comes at a time in which the cryptocurrency industry is facing renewed regulatory pressure in the U.S., particularly in the aftermath of the FTX debacle.

BITO ETF Dominates Digital Asset Investment Products Volums

July saw the average daily combined volumes of digital asset investment products rise by 1.81%, hitting an aggregate of $309 million. Volumes rose amid renewed enthusiasm for digital assets, partly ignited by several spot Bitcoin exchange-traded fund (ETF) filings from financial behemoths.

ProShares BITO led the way, with average daily volumes reaching $179 million, marking a growth of 2.96% from June. Following closely were Grayscale’s GBTC and ETHE, with average daily volumes of $83 million and $31 million, respectively, reflecting increases of 29.7% and 60.4%.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Digital Asset Management Review.

State of the Crypto by Top Tier Exchange Volume

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