- Swan Bitcoin delays IPO plans due to shutdown of its mining operations.
- CEO cites reduced revenue from mining as reason for halting IPO efforts.
- Mining sector faces challenges, with firms like Bitfarms and Northern Data adapting.
Swan Bitcoin, a financial services firm specializing in Bitcoin investments, has announced a significant strategic shift. Cory Klippsten, the company’s CEO, revealed that Swan Bitcoin will be scrapping its initial public offering (IPO) plans and shutting down its mining operations.
The announcement, made on July 22 via X (formerly known as Twitter), comes as the company grapples with the financial fallout from recent developments in the cryptocurrency mining sector.
Halting IPO plans pegged on cessation of Bitcoin mining activities
According to Klippsten, the cessation of Swan Bitcoin’s mining activities is a pivotal factor behind the decision to delay the IPO indefinitely. He stated, “Without revenue from our mining arm, we expect to halt our plans for a public offering.”
This move reflects broader challenges within the cryptocurrency mining industry, which has been adversely affected by recent Bitcoin halving events.
In January 2024, Swan Bitcoin launched its mining venture with ambitious plans to become a publicly traded entity in the U.S. within a year. At that time, the company reported generating $125 million in revenue and had expanded its workforce significantly.
However, the halving of Bitcoin’s block reward from 6.25 BTC to 3.125 BTC in April has diminished mining earnings for many firms, including Swan Bitcoin.
The halving event, which occurs approximately every four years, effectively reduces the rewards miners receive for validating transactions on the Bitcoin network. This reduction has led to a decline in profitability for several major mining companies.
Bitfarms, a Canadian mining firm, is among those affected, facing increased pressure following a hostile takeover bid from Riot Platforms.
Swan Bitcoin scaling back on spending with staff reductions
In response to the financial strain, Swan Bitcoin is scaling back its accelerated spending plans and implementing staff reductions.
Klippsten noted that this shift would impact various functions within the company, indicating a significant restructuring effort.
Despite these challenges, the broader cryptocurrency mining sector is witnessing varied responses. German mining firm Northern Data has announced plans to pursue an IPO in the US within the first half of 2025, while Genesis Digital Assets is also considering a public offering.
Swan Bitcoin’s strategic retreat underscores the volatile nature of the cryptocurrency market and the challenges companies face in navigating financial pressures and regulatory landscapes.
As the company recalibrates its business model, the future of its IPO plans remains uncertain.
Filecoin Announces Swan Chain’s Multi-chain Storage, Cardano Surges 124% – Everlodge to Disrupt $280T Market … Crypto Reporter
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Key takeaways
BitGo and Swan to launch a new trust company
Crypto custodian BitGo and bitcoin financial services firm Swan have announced plans to launch a Bitcoin-only trust company.
According to the press release published on Thursday, the Bitcoin-only trust company will offer custody without exposure to other digital currencies. The trust, which will be launched following regulatory approval, will combine BitGo’s custody capabilities with Swan’s expertise in fraud prevention and onboarding.
The companies said it would be the first Bitcoin-only trust company in the United States. BitGo CEO Mike Belshe said,
“We believe the best model for the Bitcoin industry is the same battle-tested model that has been part of the US financial industry for over a century: the separation of exchange and custody. Our teams have worked closely together for nearly a year on stronger qualified custody models. Early in 2023, we recognized the opportunity to establish a Bitcoin-only custodian, combining the unique capabilities of each company and supporting the innovators that will be at the forefront of pushing Bitcoin adoption.”
BitGo remains a leading custodian in the crypto space
This latest cryptocurrency news comes as BitGo continues to expand its presence in the cryptocurrency space despite the ongoing bear market. BitGo is one of the custodians Swan hired for its Bitcoin storage needs.
Cory Klippsten, Swan’s CEO, also commented that;
“We immediately saw the vision,” said Cory Klippsten, Swan’s CEO. “For years, we’ve heard from major clients, partners, and other Bitcoin companies that they would prefer a Bitcoin-only software and services stack that is focused strictly on the best custody that leverages Bitcoin’s unique features. It’s important to us to build a custodian without the risks of securing many altcoins within the same trust company as Bitcoin. We want to do our part to build a dedicated ecosystem for Bitcoin, separate from industry speculators, to allow for innovation in custodial offerings.”
This latest development comes a few days after South Korean Hana Bank and BitGo announced a partnership to launch a joint crypto custody venture. The joint venture will combine Hana Bank’s knowledge of financial services and compliance with BitGo’s crypto custodial solutions.
‘They’re Printing Trillions’—Crypto Now Braced For A $20 Trillion ‘Black Swan’ After Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon And Solana Price Boom Forbes
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Charles Hoskinson, the founder of Cardano (ADA) and co-founder of the Ethereum (ETH) network, tweeted furiously about the famed trader and ‘The Black Swan‘ author Nassim Taleb on January 2, labeling the writer a “piece of human garbage” over a Twitter thread published by Taleb on his account.
The drama unfolded as Taleb explained in a series of tweets why he had declined many requests to appear on Lex Fridman’s podcast between 2019 and 2022. For Taleb, the most compelling argument was that Fridman is using the title of “Research Scientist” at MIT to establish his image in the media, even though this may be an unpaid external position that grants access to the library.
To develop informative material, according to Taleb, one does not need to be linked with an institution; nonetheless, utilizing the name of a well-known educational facility is considered “shoddy.” The former trader also claimed that Fridman invited him to podcasts by sending him messages with subject lines such as “Quick Note From MIT.”
However, Hoskinson contrasted this by telling Taleb that the author wrote books for individuals who “claim to read” at parties and that Fridman is “one of the smartest, most intellectually curious, and humble people” that he has ever met.
Twitter in support of Lex
The vast majority of cryptocurrency enthusiasts and influencers linked with the sector backed Hoskinson, with most stating that there was no reason to target Fridman for what amounted to nothing more than invites to podcasts.
Hoskinson, alongside Elon Musk, Ethereum co-founder Vitalik Buterin and Austrian economist and author of ‘The Bitcoin Standard‘ Saifedean Ammous have been just some of the guests on the Lex Fridman podcast in the last year who have discussed digital assets.
Interestingly, Fridman personally responded to Taleb’s post in the thread, wishing the former trader well in the new year and expressing his appreciation for his work.
It’s worth mentioning that thus far, Hoskinson has made no more comments in response to Fridman’s post, nor have there been any new tweets made by Nassim Taleb in response to Hoskinson’s irate tweet.
Bitcoin
The bitcoin price, deep in a 70% slump from its all-time high, last dropped under $20,000 in July—erasing all of its August gains (though some suddenly think now’s the right time to buy bitcoin). Meanwhile, the ethereum price is hurtling towards its own earthquake and other top ten cryptocurrencies—including BNB
Now, bitcoin, ethereum and other major cryptocurrencies could be heading into a dicey September with a looming so-called “black swan” event, ethereum’s major upgrade and another Federal Reserve interest rate hike piling pressure on a buckling crypto market.
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A crypto “black swan” event could happen in September, potentially leading to further price declines … [+]
In September, almost $3 billion worth of bitcoin could suddenly flood the market as 137,000 bitcoin lost by the once-dominant Mt. Gox bitcoin exchange is returned to investors. Mt. Gox filed for bankruptcy in 2014 after losing 850,000 bitcoins to fraudulent withdrawals.
The repayment has previously been named as a potential bitcoin black swan—a term used to describe a very rare or otherwise unexpected event—that could have a major effect on the bitcoin price and could weigh on ethereum, BNB
This week, unfounded rumors swirled on social media that Mt. Gox’s trustee could be imminently releasing some of its recovered bitcoin to creditors, exacerbating a bitcoin price crash. Debate has raged across social media as to “how many of these original investors sitting on a 50x
On top of fears that $2.7 billion worth of bitcoin could be about to flood the market (up from just $540 apiece when Mt. Gox collapsed), traders are expecting the U.S Federal Reserve to continue its hawkish monetary policy program with another mammoth interest rate hike in September. On Friday, Federal Reserve chair Jerome Powell cautioned traders against expecting a swift end to its interest rate hikes.
“The volatility that has become so characteristic of the digital token space shows no signs of abating,” analysts at the Bitfinex bitcoin and crypto exchange wrote in emailed comments, calling bitcoin’s price drop in the aftermath of Powell’s comments a “hair-trigger response.”
Meanwhile, ethereum’s looming merge upgrade—scheduled for mid-September and designed to begin the network’s transition from the energy-intensive proof-of-work to the more environmentally-friendly proof-of-stake that’s also expected to reduce fees and improve transaction times—is causing uncertainty in the market.
“The month started with brewing optimism as market participants prepare for ethereum’s merge, but all indexes [have] declined … as we approach the end of August,” Vijay Ayyar, Asia vice president at crypto exchange Luno, wrote in an emailed note, adding ethereum “has underperformed against all the major cryptocurrencies.”
The ethereum price is currently down around 25% from its August peak.
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The bitcoin price has erased all of its August gains this week, dragging down the price of ethereum, … [+]
Looking ahead to September, most analysts and market watchers are bearish on bitcoin, ethereum and other major cryptocurrencies.
“As for where the market goes now, it’s difficult to see broad sentiment returning to the exuberance of 2021 in the near future,” Swarm Markets cofounder Timo Lehes said in emailed comments.
“While the merge is certainly creating traction with investors other headwinds still exist, such as regulatory pressure, more macro worries and rate rises, plus other ‘black swan’ type events such as the Mt. Gox bitcoin dump.”
Bitcoin
The bitcoin price climbed to over $22,000 per bitcoin—its highest since mid-June—before dropping back amid a sudden wave of optimism. The ethereum price and other top ten cryptocurrencies BNB
Now, after crypto billionaire Sam Bankman-Fried issued a dire market crash warning, the crypto prices are braced for what some have called an unpredictable and potentially severe “black swan” event as $3 billion worth of bitcoin could suddenly flood the market.
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A black swan event is a rare or otherwise unexpected occurrence that has a profound effect—with … [+]
This week, the bankruptcy trustee of the collapsed crypto exchange Mt. Gox, once the world’s largest bitcoin exchange, announced the business is gearing up to repay some of its creditors, according to a letter posted on its website. Nobauaki Kobayashi sent an email to creditors giving them the option to receive the funds in U.S. dollars, bitcoin or bitcoin cash, a fork of bitcoin.
The repayment could mean up to 150,000 bitcoins—currently worth some $3 billion—are about to flood the crypto market with crypto investor Aaron Brown telling Bloomberg “it might push prices down … the decline might spook some other people and we might see a further drop.”
The implosion of Tokyo-based Mt. Gox following the loss of around 850,000 bitcoin in 2014 sent shockwaves through the burgeoning crypto market.
In 2018, when Kobayashi sold almost 25,000 of Mt. Gox’s bitcoin, at the time worth $260 million, it marked the top of the late 2017 bull run that pushed the bitcoin price to never-before-seen highs of around $20,000 and led to a multi-year bear market that sent the bitcoin price to lows of $3,000.
If the bitcoin price sees a similar decline from its peak of almost $70,000 per bitcoin last year it could fall well under $10,000.
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The bitcoin price has crashed by around 70% since its 2021 peak, dragging down the price of top ten … [+]
The $2 trillion bitcoin and crypto crash, coming alongside a stock market rout that was triggered by the Federal Reserve’s decision to begin raising interest rates and ending pandemic-era stimulus measures, has already been exacerbated by the collapse of Terra blockchain, its UST
Many in the bitcoin and crypto space remain upbeat despite the sudden sell-off that’s wiped billions from the value of top ten coins ethereum, BNB, XRP, solana, cardano and dogecoin.
“Bitcoin saw positive momentum over the long weekend and has remained largely green this week. However, the zone between $22,000 and $23,000 still remains a challenge,” Joe DiPasquale, the chief executive of bitcoin and crypto hedge fund BitBull Capital, wrote in emailed comments, adding the Fed monetary tightening policy is in his opinion the most significant event on bitcoin’s immediate timeline.
“The [Fed’s] Federal Open Market Committee (FOMC) meeting at the end of this month remains the big event for now that can introduce volatility into the market again.”
Back in March of 2020, those taking position ahead of the Bitcoin halving were blindsided by the Black Thursday market selloff, driven by panic at the onset of the COVID pandemic and subsequent lockdowns.
With the new Omicron strain making headlines, and lockdowns once again considered, could the cryptocurrency market be facing another dangerous macro storm and catastrophic collapse?
Omicron & The Return Of The Black Swan Trend Line
According to Wikipedia, a black swan is “an event that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact with the benefit of hindsight.”
Black Thursday in March 2020 classifies perfectly as such. COVID came, the market panicked, and Bitcoin collapsed back to $3,800 at the low. It turned out to be a huge overreaction.
Related Reading | Want To Learn Technical Analysis? Read The NewsBTC Trading Course
Despite the “surprise” factor of the event and the fact no one saw COVID coming, technical analysis proves that these black swan events can be predicted to a point. But what if two black swan events were to happen from touching the same trend line. Would these really be considered black swan events?
That’s exactly what’s at risk, given the recent Omicron strain news and related panic, and the fact that Bitcoin price is indeed up against the very trend line that was used to predict Black Thursday’s eventual target to the dollar.
Could another black swan arrive with this trend line? | Source: BTCUSD on TradingView.com
Why Another Bitcoin Black Thursday Is Unlikely
The chart above shows that Bitcoin price was rejected from the same trend line that prompted the COVID correction. The move was so sharp and intense, a polar opposite rally resulted that took the cryptocurrency to more than $65,000 per coin.
Bitcoin selling off just as severely wouldn’t necessarily be a bad thing, as the bounce from such an event has shown. But despite the dangerous macro landscape and the stock market sinking, the conditions for the top cryptocurrency are very different this time around.
The conditions were very different then versus now | Source: BTCUSD on TradingView.com
For one, the arrows depict two rejections from former resistance in 2019, with the second (marked in red) failing to break out of the Ichimoku cloud. That resistance level dated all the way back to the very beginning of the bear market, which is why the Black Thursday rejection was particularly strong. Meanwhile, the current price action more so appears to demonstrate a resistance level being flipped as support.
The blue path outlines an expected Elliott Wave motive wave, with three impulses up and two corrective waves. Per Elliott Wave Theory, wave 1 shows there still life left in an asset, but market participants are reluctant to believe the bull market has begun.
Related Reading | Finding Fibonacci: Is Bitcoin Beginning A “Golden” Recovery?
Because of the remaining bearish sentiment, wave 2 wipes out most of the progress of wave 1, before wave 3 begins. With lows of wave 1 retested at the climax of wave 2, market participants are more confident in a blossoming bull trend, which is why wave 3 tends to be the longest and strongest. EWT refers to this as a wave “extension.”
Wave 4 cannot enter into the path of wave 1 and tend to move sideways. This suggests that it is unlikely to see another sharp correction like what happened on Black Thursday in 2020. Whenever wave 4 officially ends, and whether it has or not is still up for debate, targets of $100,000 per coin remain likely for the peak of wave 5.
This is the chart I have been following for months now. Until that wedge breaks down, I cannot be bearish on #Bitcoin. The bull market is still on. But has wave 5 begun or not? pic.twitter.com/m04xxz8Kax
— Tony “The Bull” Spilotro (@tonyspilotroBTC) December 2, 2021
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
“The Black Swan” author Nassim Nicholas Taleb believes that the time to short Shiba Inu (CRYPTO: SHIB) and other cryptocurrencies is “perhaps” near.
What Happened: Taleb, a former options trader, risk analyst and author, took to Twitter to share an observation that the time to short cryptocurrencies. The essayist based his observation on a photo of an Uber driver who was trading in cryptocurrencies, including Shiba Inu and Bitcoin, while driving.
You know it is perhaps close to the time to short when the Uber driver is trading cryptos, checking his portfolio live while driving.
[The picture was taken minutes ago by a friend]. pic.twitter.com/yfDlBPVpPA
— Nassim Nicholas Taleb (@nntaleb) October 27, 2021
Taleb’s tweet had 2,112 likes and was retweeted 279 times, as at press time. The famed essayist said in response to another tweet that cryptocurrencies and bank accounts cannot be put in the same category, as bank accounts are intended for currencies while cryptocurrencies are vehicles for price appreciation.
3) Further, bank account are for “currencies”= current, betw transactions, not stores of value beyond liquidity buffers.
Cryptos are vehicles for price appreciation, not same category.
And no, the blockchain is not DECENTRALIZED, a mistake I made.https://t.co/S5QCtlp3pa— Nassim Nicholas Taleb (@nntaleb) October 28, 2021
See Also: How To Buy Shiba Inu Coin (SHIB)
Why It Matters: Taleb, who once believed Bitcoin was a promising new currency as it was without government control, has lately taken to bashing the apex cryptocurrency.
In a paper published on his website in June, Talab explained why he believes Bitcoin is worth “exactly 0.”
He noted that like other cryptocurrencies, Bitcoin requires a “sustained amount of interest” to continue to exist, unlike gold and other precious metals that are largely maintenance-free.
Taleb’s comments came on the same day that Shiba Inu, the self-described Dogecoin (CRYPTO: DOGE) killer, surpassed the meme cryptocurrency in market value, based on CoinMarketCap data.
Price Action: Shiba Inu is up 43.9% during the last 24 hours, trading at $0.00007604 at press time. Bitcoin is down 3.6% over the past 24 hours to $59,067.42.
Read Next: Shiba Inu Is Now Bigger Than Robinhood, Etsy And Pinterest