Grayscale's GBTC Assets Plunge $5B, Trader Earns $6.77M in SAVM Launch, Hut 8 Shares Fall 23%
Summary:
Grayscale's Bitcoin Trust (GBTC) assets dropped by about $5 billion in the last week while a crypto trader made a $6.77 million profit during the launch of the SatoshiVM (SAVM) token. Additionally, Bitcoin mining company Hut 8 Corp faced a 23% fall in share prices amid unproven accusations of internal stock dumping, coinciding with its Nasdaq’s opening bell event.
Over the last week, Grayscale's Bitcoin Trust (GBTC) assets plunged by around $5 billion. Elsewhere, a crypto trader netted a cool $6.77 million during the token launch of SatoshiVM (SAVM), and a Bitcoin mining company's stocks experienced a steep downfall, coinciding with their Nasdaq’s opening bell ceremony and following damning accusations against the company.
Grayscale has observed a significant drop in the value of its Bitcoin ETF in the recent week, primarily due to a mix of share redemptions and unfavorable market conditions. From January 10 to January 18, the Grayscale Bitcoin Trust's (GBTC) assets under management shrank from $28.5 billion to $23.7 billion, as per data from YChart and Grayscale. Analysts had anticipated outflows from GBTC following the decision by the U.S. Securities and Exchange Commission (SEC) to permit the conversion of the fund into an ETF.
Reportedly, around $1.1 billion escaped GBTC in a span of three days. On the other hand, the other recently-approved Bitcoin ETFs have experienced significant inflows, with BlackRock's ETF leading the pack by adding 8,700 BTC, nearly worth $358 million. The nine recently-authorised ETFs now have bought almost 68,500 BTC.
A crypto trader leveraged a banana gun sniping tool to snap up the SatoshiVM (SAVM) token as it was about to be launched, and then promptly sold off the token as its price jumped, earning them $6.77 million within three hours of the token launch. However, the token price crashed 99% within three hours of the launch due to a bug. The team decided to sell treasury to recoup the locked LP and before v2 was launched, everyone in v1 was compensated and Banana Gun team absorbed the financial loss.
On January 18, Bitcoin mining operator, Hut 8 Corp., watched helplessly as their share price dived over 23%, the same day they marked their Nasdaq’s opening bell ceremony and faced unproven accusations of insiders planning to offload its stock. Their share price declined from $9.30 to a mere $7.10 in after-hours trading. The sell-off was triggered around the same time as JCapital Research, an activist short-selling firm, released a report suggesting that Hut 8's recent merger with U.S. Bitcoin Corp (USBTC) may jeopardize the investors of Hut 8. The report also suggested that an "undisclosed related party" holds the majority of the recently-merged Bitcoin miner’s shares.
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Published At
1/19/2024 11:27:25 PM
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