Circle prepares to debut on Wall Street

Stablecoin issuer Circle is moving forward with its initial public offering (IPO) debut and plans to shift its headquarters to Wall Street in 2025, according to CEO and founder Jeremy Allaire.

Circle filed for an IPO in January, pending the approval of the United States Securities and Exchange Commission.

In another strategic move to strengthen its USD Coin (USDC) as a regulated version of the digital US dollar, Circle has recently integrated its stablecoin with the national banking systems of Brazil and Mexico. The integration will give businesses in both countries real-time access to USDC through local financial institutions. 

Despite these moves, Circle is losing ground to Tether (USDT), which dominates with an over 70% market share vs. USDC’s 20%. In another headline, Tether has hired Jesse Spiro, former head of regulatory relations for PayPal’s blockchain and crypto business, as its new head of government affairs. Previously, Spiro held government relations roles at Chainalysis.

This week’s Crypto Biz also covers Cathedra’s shift from Bitcoin (BTC) mining, MicroStrategy’s third debt offering of 2024, and BitGo’s regulated custody for native protocol tokens. 

Cathedra Bitcoin cools off mining to tap MicroStrategy playbook

Cathedra Bitcoin is shifting its strategy from mining to accumulating BTC, following the approach of companies like MicroStrategy. The firm believes that mining hasn’t provided sufficient shareholder value and plans to increase BTC holdings per share. 

Nine of the 10 largest Bitcoin miners by market cap now hold less BTC per share than they did three years ago, said the company in a memo about its new strategy. Now, Cathedra will focus on generating cash flow through data center operations and buying more Bitcoin while partially maintaining mining activities. 

Source: Cathedra Bitcoin

Circle integrates USDC with national payment systems of Brazil, Mexico

Circle has integrated its US dollar-pegged stablecoin USDC with Brazil’s and Mexico’s national payment systems, including the countries’ real-time payment services PIX and SPEI. The integration allows businesses in both countries to use USDC for transactions without the need for international wire transfers, potentially reducing settlement times. The integration will facilitate real-time access to USDC via local financial institutions, supporting businesses’ cross-border transactions. 

MicroStrategy announces third debt offering of 2024, plans to raise $700 million

Technology firm MicroStrategy announced its third debt offering of 2024, aiming to raise $700 million through convertible senior notes due in 2028. The proceeds will be used to repay $500 million in existing debt and purchase more Bitcoin. In March, the company raised around $700 million in a debt offering, followed by a similar issuance in June of $500 million worth of convertible senior notes maturing in 2032. The company’s strategy involves leveraging debt to accumulate Bitcoin. It currently holds 244,800 BTC. Despite a net loss in the second quarter of 2024 due to Bitcoin price volatility, MicroStrategy’s stock has risen 96% this year.

BitGo launches regulated custody platform for native protocol tokens

BitGo has launched a regulated custody platform to manage native tokens for Web3 protocols, allowing crypto protocols to handle tasks like token vesting, distribution, staking and liquidity management. According to BitGo, the platform aims to simplify operations and ensure security, compliance, and transparency by eliminating the need for multiple providers. BitGo’s custody services are insured up to $250 million, protecting against loss or theft, said the company. BitGo is among several US firms — including Coinbase Custody Trust, Fidelity Digital Asset Services and Paxos Trust Company — chartered by the state of New York to custody crypto for US clients.

Before you go: What Solana’s critics get right, and what they get wrong. Cointelegraph’s magazine explores whether Solana is printing too many tokens, separating myths from facts about bots and subsidies. 

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