The Crypto Roundup: 16 September 2024

Michael Saylor, Co-Founder and Executive Chairman of MicroStrategy (NASDAQ: MSTR), has announced a significant new addition to the company’s already massive Bitcoin holdings. Through a post on social media platform X, Saylor revealed that MicroStrategy had purchased an additional 18,300 Bitcoin for $1.11 billion, with each Bitcoin acquired at an average price of $60,408.

This latest acquisition further solidifies MicroStrategy’s position as one of the largest institutional holders of Bitcoin. The company now holds a staggering 244,800 BTC, accumulated at an average purchase price of $38,585 per Bitcoin. In total, MicroStrategy has invested $9.45 billion into Bitcoin, marking its continued confidence in the long-term value of the flagship cryptocurrency.

Saylor’s post also highlighted that MicroStrategy has achieved a Bitcoin yield of 4.4% for the quarter to date (QTD) and an impressive 17.0% year to date (YTD). BTC yield is a metric introduced by MicroStrategy to represent the percentage change in the ratio between the company’s Bitcoin holdings and its estimated diluted shares outstanding over a specified period.

MicroStrategy’s consistent accumulation of Bitcoin reflects Saylor’s strong belief in the cryptocurrency as a store of value and a hedge against inflation. Since the company’s initial purchase in 2020, Saylor has been an outspoken advocate for Bitcoin, positioning it as a core part of MicroStrategy’s balance sheet and long-term investment strategy.

Founded in 1989, MicroStrategy specializes in enterprise software and cloud-based services. However, its current value is largely driven by its Bitcoin holdings, essentially transforming the company into a proxy for the world’s largest cryptocurrency.

Leading stablecoin issuer Tether has announced the appointment of Jesse Spiro as its new Head of Government Affairs. Spiro will be responsible for leading Tether’s policy and engagement efforts with lawmakers, regulators, and key stakeholders in the digital asset space. With over six years of experience in government and regulatory relations within the blockchain sector, Spiro brings extensive expertise to his new role.

Prior to joining Tether, Spiro held notable positions at PayPal and Chainalysis. At PayPal, he served as Head of Regulatory Relations for the company's Blockchain and Digital Currencies Business for three years. Before that, he was the Chief Government Affairs Officer at Chainalysis, a leading blockchain analytics firm.

In a statement, Spiro expressed his excitement about joining Tether and emphasized the importance of collaboration between the digital assets industry and government agencies. He aims to help grow Tether and advance its mission of building a future-proof financial ecosystem through continued education and engagement with lawmakers.

On September 10, Tether, TRON, and TRM Labs announced the formation of the T3 Financial Crime Unit (T3 FCU), an initiative designed to foster public-private collaboration in combating illicit activities involving the use of USDT on the TRON blockchain.

In August, the Tether CEO revealed that Tether has assisted over 145 law enforcement agencies since 2014, recovering $108.8 million in USDT linked to illegal activities. In July, Tether hired Philip Gradwell, former chief economist at Chainalysis, to produce reports on USDT usage for U.S. regulators and investors.

Tether’s Q2 2024 audit, performed by BDO Italia, revealed that its assets exceeded its liabilities by $5.33 billion as of June 30.

Sam Bankman-Fried, the co-founder of failed cryptocurrency exchange FTX, is appealing his conviction, seeking a new trial and accusing the presiding judge of bias. SBF's legal team has filed an appeal with the 2nd Circuit US Court of Appeals, asserting that US District Judge Lewis Kaplan showed favoritism toward the prosecution and prevented SBF from mounting a proper defense.

In their 89-page legal filing, SBF's lawyers argue that the trial was unfair, describing it as a “sentence first, verdict afterward” scenario, claiming that the judgment was rushed. CNBC’s MacKenzie Sigalos reported that the defense disputes the prosecution’s narrative that Bankman-Fried misappropriated billions of dollars from FTX customer accounts.

They highlighted that FTX’s bankruptcy estate, led by John Ray, has made progress in compensating customers, weakening the claim of stolen funds. The appeal criticizes Judge Kaplan for making prejudicial remarks during the trial, mocking the defense counsel, and showing visible disbelief towards SBF's testimony in front of the jury.

The defense argues that Kaplan repeatedly “put a thumb on the scale” to favor the government. They further contend that Kaplan “improperly prodded” jurors to deliver a quick verdict by encouraging them to stay late on the first day of deliberations while offering rides home and meals. Bankman-Fried’s legal team believes these actions compromised the fairness of the trial.

The defense is seeking to have the case assigned to a different judge, hoping for a retrial with a more impartial process. Bankman-Fried, who was convicted in November 2023 of orchestrating a multibillion-dollar fraud at FTX, is currently serving a 25-year prison sentence.

The case, titled US v. Bankman-Fried, 24-961, is now under review by the 2nd Circuit US Court of Appeals.