Cryptocurrency

Bank rules push bitcoin, not blockchain, to fringe

10 Jun 2021

The Basel Committee proposed punitive capital charges for some crypto assets. That will discourage JPMorgan and others from holding or trading in bitcoin. Yet standards-setters are more positive about the underlying technology. It’s a good balance between prudence and progress.

How to turn a software firm into a bitcoin wallet

9 Jun 2021

MicroStrategy’s holdings of the digital currency already make up over half of its $6 bln enterprise value. Now the business-analytics software group has sold $500 mln in junk bonds specifically to buy more. With crypto accounting wacky, it could make for a crazy ride.

Capital Calls: BlackRock/Exxon, Media deals, SPACs

25 May 2021

Concise views on global finance: The giant asset manager will vote for three dissident nominees for Exxon Mobil’s board; boutique adviser LionTree has benefited from a rash of media deals; Lordstown Motors show why blank-check merger projections can’t be relied upon.

Capital Calls: Bitcoin, Procore

20 May 2021

Concise views on global finance: Getting paid in cryptocurrencies loses allure in U.S. President Joe Biden's tax plan; the $11 bln building software firm is a bargain compared to peers.

Bitcoin is, for now, worst of all financial worlds

19 May 2021

The value of the crypto-asset has halved in two weeks, dented by Chinese curbs and Elon Musk’s whimsy. Part of its appeal was the lack of a meddling central bank. Yet others can step into the vacuum and make waves given thin liquidity. It’s also proving an awful inflation hedge.

Bitcoin passes the ransom test

14 May 2021

Sure, the crypto-asset isn’t widely accepted. But its appearance as a ransom in Colonial Pipeline's hack shows it shares useful features with the U.S. dollar – such as being easy to exchange. That unconventional sign of success means regulators are going to get even twitchier.

Capital Calls: Disney misses the mark

13 May 2021

Concise views on global finance: Walt Disney reported nearly 104 million subscribers for its streaming flagship service.

Bitcoin U-turn recharges Tesla governance concerns

13 May 2021

Elon Musk has stopped taking the cryptocurrency for car payments after just three months on climate concerns. But bitcoin mining is a well-known intense user of dirty energy. The flipflop suggests Tesla’s oversight of its founder remains as lax as in the bad old days.

Dogecoin needn’t be any sillier than bitcoin

12 May 2021

The canine cryptocurrency lacks bitcoin’s supply limit, ethereum’s usefulness, and the heft of both. But it’s hyped by Elon Musk and others, which could help what started as a joke compete with other digital coinages. Crypto is young enough that there’s room for an underdog.

Chancellor: Digital currencies are no “stablecoin”

11 May 2021

If the early history of paper money is any guide, a digital currency sanctioned by central banks is likely at first to prove a force for higher inflation and other economic woes. Over time, however, it should take hold, rendering bitcoin and other crypto variants redundant.

Chancellor: Central bank coin will crush the banks

4 May 2021

To battle cryptos, digital money created by monetary authorities must protect individual liberties while minimising the state’s role in credit allocation. Doing that without disrupting commercial banking and the dollar’s hegemony will be a tall order for Powell, Lagarde and Co.

Capital Calls: SXSW

19 Apr 2021

Concise views on global finance: Rolling Stone publisher Penske Media is taking a 50% stake in hipster arts festival South By Southwest.

Capital Calls: Delta Air Lines, L’Oreal

15 Apr 2021

Concise views on global finance: The U.S. air carrier says it was cash-flow positive in March, signaling the beginning of the end of the pandemic; the French cosmetics group has too much cash, which could be useful for dealmaking.

Coinbase float is crypto’s paradoxical moment

14 Apr 2021

The digital currency exchange’s direct listing on Wednesday may value it at more than $100 bln. The validation will fuel bitcoin, already at an all-time high, as well as Coinbase itself. The figure also presents a puzzle. If Coinbase is worth this much, competition is coming.

China plus bitcoin is a marriage of convenience

8 Apr 2021

Tech mogul Peter Thiel worries the People’s Republic might use the cryptocurrency to unseat the U.S. dollar. A hybrid of the best features of the yuan and bitcoin could challenge the greenback. An easier way for China to create one is by freeing up its own financial system.

Capital Calls: Digital art

11 Mar 2021

Concise views on global finance in the Covid-19 era: A blockchain-protected work by Beeple sold for $69 million at Christie's.

Capital Calls: American Airlines, Crypto PayPal

8 Mar 2021

Concise views on global finance in the Covid-19 era: The U.S. carrier is issuing new debt and hocking some airline miles to pay back the U.S. Treasury loan that carried restrictions on pay and dividends; PayPal investors give a shrug over another dive into bitcoin-land.

Capital Calls: Exxon, Greensill, Research SPAC

2 Mar 2021

Concise views on global finance in the Covid-19 era: U.S. securities regulators take on the oil giant; Investors in even lower-risk funds get nervy about the supply chain finance provider; And a supplier of picks and shovels to the online trading boom gets a blank-check listing.

Coinbase’s listing is a cryptic way into crypto

25 Feb 2021

The exchange for bitcoin may ink a $100 bln valuation in an upcoming listing. Growth and profit are encouraging. But its model relies on transactions, and past crashes are a problem. More disclosure would be reassuring. The prospectus leaves room to assume the worst.

Capital Calls: Bubble alert

16 Feb 2021

Concise views on global finance in the Covid-19 era: Bitcoin burst through $50,000, and global fund managers are maximum bullish on the pace of the recovery from the pandemic.