Weekly Wrap-up from Decrypt: Public Keys
Coinbase Resistance Unyielding Due to Public Key Control; NASDAQ Green Light for eToro and Galaxy Digital Initiation
Welcome to this week's roundup, highlighting key publicly traded crypto companies' moves from the Decrypt realm. This time, let's dive into some cybersecurity concerns, SEC investigations, and stock market debuts that have made waves in the world of crypto.
Bumpy ride for Coinbase
In the midst of a $400 million cybersecurity breach - one of their biggest ever - Coinbase has faced an uphill battle this week. What's alarming is that the hack occurred due to bribery of overseas contractors, who illegally accessed customer data.
In a video post, CEO Brian Armstrong revealed that sensitive user data, such as names, addresses, partial bank details, and ID documents, were compromised. However, only a minuscule percentage of users were affected, according to Armstrong.
The attackers aimed to extort $20 million from Coinbase to prevent the data leak. The company chose not to cave in and instead established a $20 million reward for any information leading to the culprits' capture.
To add insult to injury, the company is also grappling with a probe from the U.S. Securities and Exchange Commission regarding its user numbers.
The investigation first came to light in the New York Times, with four anonymous sources spilling the beans to reporters. The SEC probe reportedly dates back to last year during President Joe Biden's administration and is still ongoing, despite the fact that the SEC dropped its lawsuit against the exchange.
Coinbase mentioned having over 100 million "verified users" in their initial public offering document in 2021. However, they later stopped using that language in their marketing material by 2023.
Despite a couple of bumps along the way, Coinbase recently joined the S&P 500 and ended the week trading at $266.78, marking an 18% growth compared to the previous Friday.
Nasdaq newbies: eToro and Galaxy Digital
Financial services firm Galaxy Digital and trading platform eToro have made their way to the Nasdaq this week, with the former using the GLXY ticker and the latter the ETOR ticker.
Galaxy Digital, which has been listed on the Toronto Stock Exchange since 2018, had its inaugural day on the Nasdaq on May 12. CEO Mike Novogratz marked the occasion by ringing the opening bell, though he expressed frustration with the process his company went through to relocate to the U.S.
On the other hand, eToro decided to go for a U.S. IPO after failing to do so through a SPAC deal in 2021. Although details about the process are scarce, eToro's IPO was supposedly 10x oversubscribed, resulting in a market cap of $5 billion after its debut.
Other Keys
- Bitcoin woes at Basel Medical Group: Healthcare companies having a soft spot for Bitcoin? Singapore-based Basel Medical Group has proposed adding $1 billion worth of Bitcoin to its balance sheet. However, investors appear to be reluctant considering the company's shares dropped by 17% to $2.18 on the news.
- Goodbye, Wisconsin pensioners: The State of Wisconsin Investment Board sold its entire $300 million stake in BlackRock's iShares Bitcoin Trust during Q1, as reported in recent SEC filings. Or more precisely, the IBIT is no longer mentioned in its most recent list of investments.
- Office space in San Francisco: Despite often being referred to as a San Francisco-based company, Coinbase hasn't had an office in the city since 2021. Now, it seems the company might be moving to a 150,000-square-foot space at 1090 Maya Angelou Ln., sharing the address with Golden State Warriors management. Could we see Chase Center rebranded as Coinbase Center soon?
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- Despite the $400 million cybersecurity breach at Coinbase, the company ended the week trading at $266.78, marking an 18% growth compared to the previous Friday, reflecting resilience in the world of crypto finance and investing.
- Financial services firm Galaxy Digital and trading platform eToro, both heavily involved in crypto, have made their way to the Nasdaq this week, joining the ranks of businesses leveraging technology to transform the financial landscape.
- The Basel Medical Group, a healthcare company, proposed adding $1 billion worth of Bitcoin to its balance sheet, but the move has left investors cautious, highlighting the growing intersection of crypto and traditional businesses.
- The State of Wisconsin Investment Board sold its entire $300 million stake in BlackRock's iShares Bitcoin Trust during Q1, further demonstrating the intricate relationship between crypto and finance, and the evolving trends in investment.
- As Coinbase potentially moves to a 150,000-square-foot space in San Francisco, one can envision a future where the city's iconic Chase Center might be rebranded, signifying the increasing prominence of crypto businesses in the tech-centric city.
