MicroStrategy Continues Buying Spree, Cantor Fitzgerald Eyes $2B Bitcoin Lending Program, and BTC Price Hits $100K Wall

Takeaways

• Michael Saylor’s MicroStrategy acquired 55,500 BTC for roughly $5.4 billion, bringing its total holdings to 386,700 BTC: Shares have dropped 19% over the past five days as investors weighed the move.
• Cantor Fitzgerald plans a $2 billion Bitcoin-backed lending program with Tether: CEO Howard Lutnick is stepping down as he prepares to become US Commerce Secretary after being selected by President-elect Trump.
• Bitcoin cools off before new surge: The price of bitcoin dropped to below $91,000 early this week, stifling a post-election rally. But it rallied again Wednesday, surpassing $96,000 by mid-day.
• Sky Mavis lays off 21% of its workforce in strategic restructuring, with CEO Nguyen emphasizing a focus on growth: The web3 gaming giant aims to expand its Ronin Network, marketplace, and Axie Infinity ecosystem.

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Michael Saylor’s MicroStrategy Acquires 55,500 Bitcoin for $5.4B

MicroStrategy has made another substantial Bitcoin purchase, adding 55,500 bitcoin over the past week at an average price of $97,862 per coin, totaling $5.4 billion. This latest acquisition brings the company’s current holdings to 386,700 bitcoin, with an average acquisition cost of $56,761 per coin. This move highlights the firm’s ongoing strategy to use bitcoin as a key treasury asset.

The company has also been in the spotlight recently due to its significant stock performance, with a 467% gain this year briefly propelling it into the top 100 U.S. publicly traded companies by market capitalization, surpassing $100 billion before pulling back. Shares of MicroStrategy (MSTR) have retreated some 27% over the past five days as investors weighed the latest moves.

The company is currently eagerly awaiting the results of the Nasdaq 100’s annual reranking on December 13 to see if it qualifies for inclusion. If it is ultimately included as is expected, the company’s share price could see further upward price movement before the end of the year.

Cantor Fitzgerald Eyes $2 Billion Bitcoin Lending Program with Tether

Cantor Fitzgerald is reportedly planning a Bitcoin-backed lending initiative in collaboration with Tether. The program, which would allow clients to borrow dollars using bitcoin as collateral, is set to begin with an initial allocation of $2 billion. Viewed by many as another step in strengthening ties between Wall Street and the crypto industry, the initiative could expand as crypto adoption grows among retail and institutional investors.

The proposed program is still in its early stages and is expected to include contributions from other financial institutions alongside Tether. The move comes as Howard Lutnick, Cantor’s CEO, was picked by President-elect Trump for the position of US Commerce Secretary. Lutnick is preparing to divest his interests in the firm in line with US financial ethics rules, with his son Brandon Lutnick potentially stepping into a leadership role.

Cantor currently manages most of Tether’s $132 billion assets through its custody division, reportedly earning substantial fees. It also holds a 5% stake in Tether, valued at $600 million. The relationship has drawn scrutiny, especially given Tether’s controversial history of reserve transparency and allegations of facilitating illicit activities, which the company has consistently denied.

Bitcoin Price Pulls Back Before Rebound

After hitting an all-time high of $99,645 last week, the price of bitcoin dropped below $91,000 early this week before roaring back above $96,000 by mid-day Wednesday.

The initial drop led to more than $500 million in long positions being liquidated, but the pullback was largely viewed by analysts as a healthy correction. Over the past 30 days, the price of bitcoin has jumped more than 40%, buoyed in large part by President-elect Donald Trump’s victory. Trump is widely expected to usher in a crypto-friendly regulatory regime when he takes office in January.

There is still optimism that bitcoin will hit $100,000 by the end of the year, with betting site Polymarket putting it at 80%.

Axie Infinity Developer, Sky Mavis, Lays Off 21% of Workforce

Sky Mavis, the company behind the popular blockchain game Axie Infinity, has announced layoffs affecting 21% of its workforce, approximately 50 employees. CEO and co-founder Trung Nguyen emphasized that the decision is not financially driven but part of a strategic shift to position the company for growth in 2025.

Nguyen outlined the company’s revised priorities, which include expanding the Ronin Network, enhancing the Mavis Marketplace and wallet services, further developing Axie Infinity, and creating a new game within the Axie ecosystem. He described the layoffs as a necessary step to streamline operations and sharpen the company’s focus.

Sky Mavis gained significant attention during the pandemic when Axie Infinity became a top play-to-earn blockchain game, attracting 2.7 million daily active users and achieving $214 million in weekly NFT trading volume at its peak. However, the company faced challenges in 2022 when its Ronin sidechain was hacked by the North Korea-linked Lazarus group, resulting in losses of approximately $600 million.

-The Gemini Team