Latest news with #AnimocaBrands
Yahoo
21-07-2025
- Business
- Yahoo
Chart of the Week: Wall Street's 'Infinite Money Glitch' Moves From Bitcoin to Altcoins
Wall Street has long mastered the creative art of turning complexity into a money-printing machine. How do they do it? Financial engineering — an art of structuring debt, equity, and derivatives to squeeze out returns in ways that often defy convention. It's a playbook that made fortunes — and nearly broke the system in 2008. Now, this complex engineering of money has entered the crypto market. With Wall Street's takeover of crypto, financial engineering is fast becoming a pillar of the crypto market. It is now at the center of the latest iteration of one of the hottest trends in the space: the crypto treasury strategy. This trend is championed by Michael Saylor, whose company — MicroStrategy (MSTR), now rebranded simply as Strategy — began acquiring bitcoin as both a corporate reserve asset and a market signal. But the real innovation wasn't just buying BTC and holding it. It was how the firm financed those purchases: issuing convertible notes and equity to raise capital, then cycling that capital into buying more bitcoin. Each announcement triggered a surge in Strategy's share price, which in turn made new capital raises easier and more lucrative. Others took note. What began as a bitcoin bet turned into a blueprint for a new kind of treasury management: announce crypto treasury strategy, stock pumps, raise funds, buy tokens, watch the share price pop more, repeat. This is the new "Infinite Money Glitch," according to Animoca Brands Research. "This financial engineering approach of utilizing debt and equity issuances, such as convertible notes and stock offerings, specifically to raise funds for continuous crypto asset acquisitions creates a 'flywheel" effect," the firm said in a research note. Obviously, this money printing machine didn't stop with bitcoin. Smaller firms started to apply this to other popular altcoins, including XRP, ETH and SOL. But why altcoins? After all, the bitcoin market has matured, the cycle has been well defined, and the likes of Michael Saylor have shown that the returns serve the shareholders well while enabling firms to continue to raise funds. It's the early-stage advantage, according to Animoca's research. "Applying this 'flywheel' model to altcoins might offer a more extended runway for growth and profitability compared to bitcoin. While bitcoin's market is more mature and its price discovery has undergone several major cycles, the vast and diverse altcoin market is still, in many respects, in its nascent stages," the research noted. A quick look at the return charts shows that in the short term, this altcoin treasury strategy has paid off for the firms and their shareholders. "On the day of the [altcoin treasury] announcement, share prices saw an average increase of 161%. This upward trend persisted, with average gains of 150% one day after, 185% after seven days, and 226% after 30 days," the note said. "This immediate market response also underscores the market's willingness to invest in publicly traded 'wrappers' for altcoin exposure." Interestingly, launching these treasury strategies didn't impact the actual prices of the underlying tokens, Animoca's data shows. This perhaps makes a compelling case for investors to flock to these equity "wrappers" rather than to the actual tokens. Also, the lack of altcoin exchange-traded funds (ETFs) means that Wall Street has limited options but to buy into these strategy companies to capture the upside. For investors, these massive short-term gains are hard to ignore, and as long as there is an appetite for such financial engineering, capital will continue to flow into them. The only question is: Is this sustainable? "Should market sentiment shift or altcoin prices experience a prolonged decline, the leveraged nature of some of these strategies that could be employed carries substantial inherent risks," Animoca Brands research analysts said. "Nevertheless, the trend highlights a significant addressable market for structured products that bridge traditional finance with crypto," the report added. So for now, the "Infinite Money Glitch" is here for the in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The National
19-07-2025
- Business
- The National
'Genius' move: What are the goals of the three US crypto bills?
US President Donald Trump has signed the Genius Act into law, setting the stage for greater cryptocurrency supervision in line with America's aim to be the global leader in digital asset s. The bipartisan bill is one of three that had both Capitol Hill and crypto enthusiasts buzzing, as it would set the US up for the future of finance, while also being a legacy move for Mr Trump, who has gone from crypto sceptic to champion. 'The Genius Act could become a defining milestone for stablecoin policy. Moving stablecoins out of regulatory ambiguity won't just enable institutional participation, it will require it,' said Omar Elassar, managing director of venture capital firm Animoca Brands Middle East. The National reported that cryptocurrencies will not become mainstream unless the acts enforce strong regulations. We take a look at the three acts and how they would redefine cryptocurrency regulation and its future. Genius Act: 'Long overdue' According to the White House, the Genius Act is meant to make America 'the undisputed leader in digital assets'. The 'long-overdue' law is intended to prioritise consumer protection and strengthen the US dollar's reserve currency status, in addition to improving national security, which is one of the Trump administration's pillars. Also, the Genius Act is aimed at bringing 'massive' investment and innovation to the US, the world's top economy – although the latter is being challenged by others, most notably by rival China. The bill details strict regulations for stablecoins, which aim to address cryptocurrencies' shortcomings by pegging their value to a unit of an underlying asset, are often issued on faster blockchains and backed by state-issued tender such as the dollar, pound, euro and highly liquid reserves including government treasuries or commodities such as precious metals. Also, a stablecoin is different from a central bank digital currency, or CBDC: the former is privately issued, while the latter is government-backed. Both, however, aim to make transactions faster, cheaper and more secure, and would serve emerging markets well. The Genius Act will usher in the creation of the first-federal regulatory system for stablecoins. It also requires 100 per cent reserve backing with liquid assets like the dollar or short-term Treasuries and mandates issuers to make monthly, public disclosures. Should a stablecoin issuer become insolvent, the Genius Act will prioritises stablecoin holders' claims over all other creditors, it added. 'The passage of the Genius Act is a true watershed moment for the US. It is a defining step for responsible crypto policy … giving issuers, builders, and regulators the clear rules they have been asking for,' said Ji-Hun Kim, president of the Washington-based Crypto Council for Innovation. All said, the Genius Act aims to ensure the greenback remains the world's reserve currency, help fight illicit activity in the crypto world and make the US the global leader for digital assets. Clarity Act: Dual supervision The Digital Asset Market Clarity Act of 2025, or Clarity Act, meanwhile, aims to establish a regulatory framework for digital commodities – namely, the classification, offering, trading and supervision of digital assets. It will also define clear lines of jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission, two of the top US asset regulators that have been monitoring the digital asset situation and cracked down on crime – most notably the case involving jailed FTX boss Sam Bankman-Fried. That means it is expected to be a strict law because, 'at its core, it introduces a dual-agency approach to oversight', said Jerry Huang, an associate at Canadian law firm McMillan. The Clarity Act calls for how digital assets may be offered, sold and traded in the US, and the registration of brokers, dealers and trading facilities, who must maintain fair trading and anti-manipulation systems, ensure real-time transparency and adopt anti-money laundering and know-your-customer programmes. These would help reduce 'legal uncertainty for issuers, developers and intermediaries, while strengthening investor protections and market integrity', Mr Huang added. Anti-CBDC Surveillance State Act: 'Weapon' control The summary of the Anti-CBDC Surveillance State Act is to 'amend the Federal Reserve Act to prohibit the Federal reserve banks from offering certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy and for other purposes'. In other words, a CBDC carries the risk of the government being able to surveil people's financial transactions and 'suppress politically unpopular activity', said Congressman Tom Emmer, the bill's main author, who also noted that a CBDC is 'is government-controlled, programmable money'. 'For years, we have worked to educate our colleagues on the dangers of this insidious technology, which would undermine our values and destroy Americans' right to privacy. Now, we must codify [CBDC] to ensure that the United States' digital currency policy remains in the hands of the American people. The bill aims to prevent future administrations from weaponising CBDC technology against the American people, he said. The American Bankers Association agreed in a letter to Mr Emmer, saying that a CBDC 'is unnecessary in the US and would present unacceptable risks and costs to the financial system'. Are these bills bulletproof? Whether these three legislations work as they are intended to do so remains to be seen, especially as digital assets remain vulnerable to misuse and are being used in illegal activity – a lot. In 2024, more than 99 per cent of stablecoin volume was legitimate – but stablecoins accounted for about 60 per cent of illicit transaction across the crypto ecosystem, according to an analysis from blockchain platform TRM Labs. 'Their speed, liquidity, and perceived stability can make them attractive for ransomware payments, terrorist financing, romance and investment scams, sanctions evasion, over-the-counter fraud and large-scale laundering,' said Ari Redbord, a vice president at San Francisco-based TRM. That corroborates an earlier report from Chainalysis, which found out that 63 per cent of all illicit transaction volumes involve stablecoins. 'The integration of stablecoins into traditional finance creates new systemic risk vectors that extend beyond individual protocols or platforms,' analysts at New York-based Chainalysis said. 'A failure of a major stablecoin could trigger cascading liquidations across interconnected protocols, potentially freezing large portions of the DeFi [decentralised finance] ecosystem.'
Yahoo
18-07-2025
- Business
- Yahoo
Asian Food Platform DDC Appoints Investing Professional After Animoca BTC Yield Deal
DDC Enterprise (DDC), known for its Asian food brands, named Kyu Ho as chief of staff to strengthen its management team as it expands into bitcoin (BTC) treasury management. The appointment follows a week after the Hong Kong-based company signed an agreement to develop investment strategies for $100 million worth of BTC on behalf of Web3 investment giant Animoca Brands. Ho, with 20 years of investing experience, was most recently managing partner of early-stage crypto investment firm Initial Ventures. DCC, whose shares trade on the New York Stock Exchange, embarked on its plans build a bitcoin treasury earlier this year and has since acquired 368 BTC ($43.7 million). The shares have climbed as much as 350% since then, and currently are priced at $15.83, just over 12% lower on the day. Publicly-traded companies from a range of industries have been adopting crypto reserve strategies in recent months, inspired by the likes of Strategy (MSTR) and Metaplanet (3350), which have both seen their share prices skyrocket as investors regard them as a proxy bet on bitcoin. They've been joined by corporations branching into treasuries based on ether (ETH) and other altcoins. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
14-07-2025
- Business
- Business Wire
DDC Enterprise Announces US$100 Million Bitcoin Strategic Partnership with Animoca Brands to Advance Corporate Bitcoin Treasury
NEW YORK--(BUSINESS WIRE)--DDC Enterprise Limited (NYSE: DDC) ('DDC' or the 'Company') today announced that it has signed a non-binding memorandum of understanding ('MoU') with Animoca Brands to develop and implement strategies that maximize yield for the Web3 leader's Bitcoin assets while managing associated risks. The MoU establishes a strategic partnership whereby Animoca Brands will allocate up to US$100 million in Bitcoin towards yield enhancement strategies operated by DDC. The move, which accelerates DDC's Bitcoin accumulation strategy, positions Bitcoin as a key component of contemporary corporate finance strategy, and serves as a blueprint for digital asset adoption among public companies. In addition, Yat Siu, Co-Founder and Executive Chairman of Animoca Brands, will join DDC's newly formed Bitcoin Visionary Council to provide strategic leadership and guidance to ensure the Company's Bitcoin treasury operations align with cutting-edge industry standards and long-term value creation. "This partnership with Animoca Brands marks a transformative step for DDC and reflects our shared vision to accelerate Bitcoin's role as a pristine monetary asset,' said Ms. Norma Chu, Chairwoman, Founder and CEO of DDC. 'The addition of Yat Siu to our newly formed Bitcoin Visionary Council brings exceptional industry experience and network value that will strengthen our strategic direction and help guide our treasury and Bitcoin ecosystem initiatives. Together, we're committed to innovation, disciplined risk management, and unlocking Bitcoin's full potential as a modern treasury asset.' "Our partnership with DDC enables Animoca Brands to enhance the value of our blockchain technologies and maximize the value of our Bitcoin holdings,' added Yat Siu, Co-Founder and Executive Chairman of Animoca Brands. 'Through this partnership, we will focus on developing strategies to enhance Bitcoin's value proposition, leveraging DDC's commitment to advancing corporate Bitcoin treasury solutions." Key Partnership Advantages Accelerates DDC's Bitcoin accumulation strategy Develops yield-generating strategies for Bitcoin treasury corporations Creates a replicable framework for public-company digital-asset adoption About DDC Enterprise DDC Enterprise Limited (NYSE: DDC) is spearheading the corporate Bitcoin treasury revolution while maintaining its foundation as a leading global Asian food platform. The company has strategically positioned Bitcoin as a core reserve asset, executing an aggressive accumulation strategy. While continuing to grow its portfolio of culinary brands – including DayDayCook, Nona Lim, and Yai's Thai – DDC is now at the vanguard of public companies integrating Bitcoin into their financial architecture. About Animoca Brands Animoca Brands Corporation Limited (ACN: 122 921 813) is a global Web3 leader that leverages tokenization and blockchain to deliver digital property rights to consumers, helping to establish the open metaverse and its associated network effects. It has received broad industry and market recognition including Fortune Crypto 40, Top 50 Blockchain Game Companies 2025, Financial Times' High Growth Companies Asia-Pacific, and Deloitte Tech Fast.
Crypto Insight
13-07-2025
- Business
- Crypto Insight
Animoca Brands partners with DDC Enterprise to put BTC treasury to work
Web3 company Animoca Brands signed a non-binding memorandum of understanding (MOU) with DayDayCook (DDC) Enterprise, a meal-prep and packaged food company that recently adopted a Bitcoin treasury strategy, to manage Animoca's BTC holdings and generate a yield on those reserves. Animoca will allocate up to $100 million in BTC as part of the deal, according to a joint announcement from Thursday. Animoca Brands co-founder and executive chairman Yat Siu told Cointelegraph that DDC Enterprise was chosen in part because of CEO Norma Chu and her ability to cultivate a 'substantial non-crypto following,' introducing the asset sector to the general public, which may not have had an interest in crypto otherwise. Siu also said: 'Her background and her experience enable Norma to bridge the East and West to successfully navigate markets on both sides of the planet; she has good appeal and connections to the Chinese market, one of the largest for crypto adoption, while also running a NASDAQ-listed company.' DDC Enterprise tipped its Bitcoin treasury plans in May, setting a goal to buy 5,000 BTC over three years. That same month, the company purchased 21 BTC for its corporate treasury. The Bitcoin treasury narrative continues to gain traction, as corporations adopt the supply-capped asset as a hedge against inflation, and, in some cases, reorient themselves to become Bitcoin holding companies. The proliferation of Bitcoin treasury firms has left investors divided about the effects of these companies on the market, with some arguing it will boost mainstream adoption and others warning that overleveraged BTC companies could trigger the next market meltdown. Bitcoin Treasury Strategy becomes a top trend in 2025 There are currently 268 institutions holding BTC on their balance sheets, including public companies, private enterprises, government organizations, asset managers, and crypto firms, according to BitcoinTreasuries. Public companies account for 147 of these 268 institutions, making them the largest category of institutional Bitcoin holders by a wide margin. Bitcoin treasury companies added 159,107 BTC in Q2 2025, valued at over $18.7 billion using current prices, and representing a 23% quarter-over-quarter increase in acquisitions. In June, cypherpunk and Blockstream CEO Adam Back said the Bitcoin treasury trend is the new altseason for crypto traders and short-term price speculators. 'Time to dump ALTs into BTC or BTC treasuries,' the CEO wrote in a June 22 X post. Despite the growth of BTC treasury options and the market hype, some market analysts and crypto firms warn that most treasury companies won't survive the next market downturn and will capitulate as soon as BTC prices begin to drop and cheap corporate financing options disappear. Source:
