Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
Michael Saylor’s MicroStrategy is raising $500 million to buy more Bitcoin. Whale addresses bought nearly $1.4 billion in Bitcoin on June 11 as the price dipped ahead of a FOMC meeting. Meanwhile, Terraform Labs is on the hook for $4.47 billion as part of a settlement with the United States securities regulator.
MicroStrategy plans $500 million stock sale to buy more Bitcoin
MicroStrategy has announced its intention to offer $500 million in convertible senior notes due in 2032. According to a press release, the net proceeds will primarily be used to acquire additional Bitcoin
BTC $66,296 and for “general corporate purposes.”The private offering to qualified institutional buyers would adhere to Rule 144A of the Securities Act 1933 and is “subject to market conditions and other factors.”
“The notes will be unsecured, senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The notes will mature on June 15, 2032, unless earlier repurchased, redeemed or converted in accordance with their terms.”
Despite being subject to market conditions, this move aligns with MicroStrategy’s long-term goal of using BTC as its treasury reserve asset.
Bitcoin whales scoop $1.4 billion in 24 hours amid market correction
Bitcoin whales took full advantage of the Bitcoin price slump earlier this week on June 11, accumulating a combined 20,600 BTC worth $1.38 billion on the day.
According to blockchain analytics firm CryptoQuant, it was the largest inflow day for Bitcoin whales since Feb. 28, when spot Bitcoin exchange-traded funds were barely six weeks old, and BTC was approaching a new all-time high.
Inflows into Bitcoin whale accounts hovered between 1,300 and 2,200 Bitcoin per day as Bitcoin fell from $71,650 on June 7 to around $69,000. The price plummeted again days later, leading to a massive day with 20,600 Bitcoin flowing into whale accumulation addresses on June 11.
The data hasn’t yet been updated for June 12, which saw Bitcoin’s price briefly spike after better-than-expected CPI results. At the time of writing, Bitcoin is trading for $67,500.
Terraform to pay $4.47 billion to resolve SEC civil lawsuit
Terraform Labs has agreed to pay the United States Securities and Exchange Commission (SEC) roughly $4.47 billion as part of its settlement with the securities regulator.
The total remedies include disgorgement fines of roughly $3.6 billion, a civil penalty of $420 million and prejudgement interest of nearly $467 million.
The settlement was reached after a jury found Terraform Labs and its co-founder liable for the Terra ecosystem collapse, which erased $40 billion in investor assets.
The SEC filed a lawsuit against Terraform Labs in 2023, accusing the firm and its founder, Do Kwon, of selling unregistered securities and defrauding investors after the collapse of the Terra ecosystem.
In 2022, the TerraUSD algorithmic stablecoin began to show signs of instability, followed by investor flight from the Terra ecosystem, which essentially amounted to a bank run.
Not long after widespread fears about the Terra ecosystem gripped the market, TerraUSD lost its dollar peg and collapsed—leading to billions in losses for holders of the assets.
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