Washington D.C. – U.S. regulators and analysts have pinpointed eight potential custodians holding MicroStrategy’s $70 billion Bitcoin portfolio. Filings suggest the investment firm, led by Michael Saylor, has divulged its list of custodians to the SEC under Rule 83, which prevented public disclosure.

SECURITY IN BITCOIN

• The SEC inquired about MicroStrategy’s Bitcoin custodians after Silvergate Bank’s failure in April 2023, though firm details remained confidential.
• The eight potential custodians identified are: BitGo, Coinbase, Fidelity Digital Services, GMO-Z.com, Bakkt (owned by Warner Bros. Discovery), Gemini, NYDIG, and Paxos Trust Company.
• MicroStrategy consistently uses SEC Rule 83 to maintain confidentiality regarding custodian arrangements.

COINBASE AND MICROSTRATEGY RECORD MOVEMENT

• Despite recent market volatility, Coinbase (COIN) reached a new intraday high of $444.65 on Monday, building on weekly gains fueled by ETF inflows and positive analyst sentiment.
• MicroStrategy (MSTR) stock briefly hit an all-time high as its Bitcoin holdings climbed past 601,000, but retreated over the following days.

BUSY WEEK IN CRYPTOCURRENCY TREASURIES

Several publicly traded firms boosted or announced plans to significantly expand their cryptocurrency treasury investments, seeking exposure to digital assets amid the ongoing bull market.

• Bit Origin (BTOG): Soared nearly 100% after raising $500 million in equity financing for building a Dogecoin treasury.
• Sharplink (SBET): Increased its planned Ethereum treasury funding from $1 billion to $6 billion.
• Volcon: Announced a plan to raise $500 million to expand its Bitcoin treasury.

FURTHER MARKET DEVELOPMENTS

Separate from direct treasury allocations, two major developments unfolded in the crypto market.

• Grayscale retains its Bitcoin Trust (GBTC), with preliminary IPO documents prepared but still under review.
• Financial heavyweights like BlackRock face regulatory hurdles before staking Ethereum assets held for ETF purposes becomes permissible.
  Speculation continues about an “ETH season” driving institutional interest.