TradFi to the Rescue
Good morning. Today in the CT5, Celsius looks to TradFi for advice, some companies are still hiring, and there may be some blood in the bitcoin miner waters. All that and more!
Market Update (as of 9:33am ET):
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Top 5:
1. Celsius calls on Citigroup for options after liquidity squeeze. Celsius is leaning on investment bank Citigroup to advise on next steps and lay out financing options. Citigroup will also help Celsius evaluate offers to buy distressed assets, including one made by rival lender Nexo. In addition to support from Citigroup, Celsius has also called on DC-based law firm Akin Gump Strauss Hauer & Feld to explore other financing options and potentially to head off small claims court actions from its customers. Celsius CEO Alex Mashinsky tweeted yesterday for the first time after freezing withdrawals to thank customers for their patience.
@CelsiusNetwork team is working non-stop. We’re focused on your concerns and thankful to have heard from so many. To see you come together is a clear sign our community is the strongest in the world. This is a difficult moment; your patience and support mean the world to us.
— Alex Mashinsky (@Mashinsky) June 15, 2022
2. Tether sees new wave of redemptions as fear of market contagion spreads. Investors pulled out $1.6 billion from Tether over a 48-hour period following fears of insolvency at Celsius and the broader market downturn. The composition of assets backing the Tether stablecoin has long been a concern in crypto markets, with many questioning the quality of assets held by the stablecoin provider. In the wake of the redemptions, Tether posted a message clarifying that they had previously liquidated their Celsius positions without a loss and that they had no exposure to 3AC. According to Tether's website, the reserves hold around $71 billion in assets.
1/
— Paolo Ardoino (@paoloardoino) June 15, 2022
Tether reduced almost 50% its CP holdings since 31st March 2022. By end of June only 8.4B CP left. CP exposure going to be reduced to 0.
No exposure to Celsius on our reserves. Liquidated without losses.
No exposure to 3AC. https://t.co/vPUW3s16Pk
3. Tron's TRX bumps 27% as DAO deploys $220M for token purchase. The Tron DAO Reserve confirmed on Wednesday that they have deployed $220 million in USDC to purchase the protocol's native token, TRX. The move helped drive the token's price up around 27% and helped push the USDD stablecoin closer to its dollar peg. TRX is now trading around $0.06, while USDD is trading around $0.975.
4. Binance, Kraken and Polygon accelerate hiring in response to industry-wide job cuts. In contrast to some competitors, Binance, Kraken, and Polygon are looking to hire during the crypto markets crash. According to a spokesperson for Binance, the exchange has over 2,000 open positions in Europe, Asia, South America, Africa, and the Middle East. Kraken also announced their plans to hire over 500 staff, while Polygon has "hired at least 50 senior folks all across."
It was not easy saying no to Super bowl ads, stadium naming rights, large sponsor deals a few months ago, but we did.
— CZ 🔶 Binance (@cz_binance) June 15, 2022
Today, we are hiring for 2000 open positions for #Binance. pic.twitter.com/n24nrUik8O
5. CleanSpark takes advantage of bear market to acquire mining rig contracts. The Las Vegas-based miner is taking advantage of bear market prices on bitcoin mining rigs by buying existing purchase contracts from another miner. The firm announced they will acquire 1,800 Antminer S19 XP computers to add to their existing capacity starting in August. According to research from Galaxy Digital, a sample set of public miners still owe $1.9 billion this year for ASIC purchases they have committed to. The market turndown may provide other opportunities for miners like CleanSpark to acquire mining rigs at below market prices.
Updates and other stories:
- New crypto bill suggests unrealized staking gains should not be taxed...Read More
- MetaMask and Phantom crypto wallets fix browser extension vulnerability...Read More
- DeFi protocol Inverse Finance exploited for $1.2M...Read More
Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN
External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings
Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.