Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Voices
Trump Media Files Trademark for Crypto Platform ‘TruthFi’
Crypto | Nov 27, 2024
Image: Freepik
Trump Media Group Trademarks 'TruthFi' for Crypto Payments Platform
Trump Media & Technology Group (TMTG) who owns Truth Social recently filed a trademark application to the U.S. Patent and Trademark Office (USPTO) for "TruthFi", a cryptocurrency payment platform on November 18, 2024.
Based on the trademark application filing, TruthFi will be a platform to facilitate cryptocurrency transactions, so digital asset services could involve a digital wallet, card payment processing, asset management, custody or trading. Details and launch date were not mentioned but the filing aligns with TMTGs announcement to expand into digital asset services.
Conflict of Interest?
As Trump broadens his interest and assets in the world of crypto, it raises questions about conflict of interest issues given that Trump has dual roles as President-elect AND the owner of businesses that could benefit from favourable regulations. Also, Trump has previously declined to divest from his business empire and has not suggested that he has plans to do so during his upcoming term.
See: Meme Coin Chaos and Wild West of Viral Tokens
Richard Painter, Ethics lawyer:
“It’s a huge problem but it’s not a Trump specific problem. Just like it’s a huge problem that members of Congress are trading crypto while they fail to pass legislation regulating crypto and accept huge amounts of donations from the crypto industry.
President Trump ought to do what every other president has done: Divest personal assets, Trump Organization assets, everything that creates a conflict of interest with his official duties. And that includes Truth Social and crypto.”
Broadening Crypto Involvement
- Trump's campaign promise was to make the U.S. the “crypto capital of the planet.”
- He also vowed to replace outgoing SEC Chairman Gary Gensler with a more crypto-friendly appointee.
- He's launched several Trump-related digital NFT collectibles (Mugshot Edition, Trump Cards)
- Reportedly, Trump is in discussions to purchase crypto trading platform Bakkt (news drove up stock price by 160%)
- In September, Trump launched World Liberty Financial, another crypto-focused business. (Justin Sun, Founder of Tron Blockchain, purchased $30 million of WLFI tokens)
- Trump's family also launched crypto platform the 'Defiant Ones
The Bigger Picture
Trump's new trademark and growing interest in cryptocurrency shows how closely his businesses are getting involved with the crypto world.
See: Gary Gensler Resigns as SEC Chair, Leaving January 20
As his administration takes office in the new year, the decisions it makes about crypto regulation will shape the future of the sector in the U.S. while also likely benefiting his own companies profit.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Be Part of a Landmark Study Shaping the Future of Fintech
Survey | Nov 26, 2024
Image: 2nd Global Fintech Research Initiative (CCAF, WEF)
Help Shape the Future of FinTech: Join the Global Research Initiative Today!
The Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge Judge Business School and the World Economic Forum invite you to participate in the 2nd Future of Global FinTech Research Initiative. This flagship study will provide key insights into global Fintech trends and challenges. Insights from Canadian fintech innovators are key to this research which will explore the bleeding edge trends such as:
- Artificial Intelligence in Finance: How is AI revolutionizing the industry?
- Partnerships Between Fintechs and Financial Institutions: What are the opportunities and challenges?
- Financial Inclusion: The impact of Fintech in underserved markets
- Key Performance and Growth Indicators: Industry benchmarks for success
See: CCAF and WEF Unveil 2024 Global Fintech Report at Davos
Why Participate?
- Help Shape Policy & Industry Trends: Your data will contribute to evidence-based decisions for regulators, policymakers, and stakeholders.
- Global Recognition: Your organization will be acknowledged in the report and associated materials.
- Access Exclusive Insights: Early access to findings and invitations to key events with industry leaders.
- Checkout the CCAF and WEF 2024 Global Fintech Report (unveiled at Davos)
Click the Survey Link to Start
- Survey Link: Complete the Survey Here
- Time Commitment: 20 - 30 minutes
- Deadline: *Extended until December 28, 2024 (from Nov 29)
- Confidentiality: Individual entries are strictly confidential and only aggregated data will be reported.
Take part in this unique opportunity to drive the future of Fintech and ensure Canada’s voice is strongly represented on the global stage.
For more information, reach out to the team at cambridgeFMO@jbs.cam.ac.uk.
Take the survey --> Now
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Gary Gensler Resigns as SEC Chair, Leaving January 20
Regulation | Nov 22, 2024
Image: Freepik
SEC Chair Gary Gensler to Step Down January 20, What It Means for Markets and Crypto
On Nov 21, 2024, the U.S. Securities and Exchange Commission (SEC) announced that Gary Gensler SEC Chair will officially step down on January 20, 2025, aligning with President-elect Donald Trump's inauguration.
During his tenure as SEC Chair, Gary Gensler oversaw the aftermath of the GameStop trading frenzy, lawsuits against crypto and fintech giants like Binance, Coinbase, Uniswap, and Robinhood, enforced regulations during the SPAC boom, addressed controversies over meme stocks and market volatility from social media fuelled trading, implemented reforms in response to the Archegos Capital collapse, managed the regulatory response to the FTX bankruptcy, and negotiated the first full inspections of China-related audit firms by the Public Company Accounting Oversight Board (PCAOB).
On January 20, 2025 I will be stepping down as @SECGov Chair.
A thread 🧵⬇️
— Gary Gensler (@GaryGensler) November 21, 2024
According to the SEC's release, Gensler's key achievements:
- Updated rules to central clearing including changes to how trades are processed and cleared.
- Tightened governance rules for insider trading, improved transparency in executive pay, and made it easier for shareholders to vote on board members.
- Introduced new transparency requirements for companies to share more information about cybersecurity threats, climate risks, and data breaches.
- Took strong action against major crypto firms including cases of fraud and failing to register properly.
See: Gary Gensler, Chairman of the SEC Speech
What It Means for Crypto
Gensler's resignation could lead to major changes in how crypto and digital assets are regulated in the U.S. With Gensler's departure and Trump's pro-business/crypto approach, many industry experts are expecting crypto rules to become more transparent and relaxed. While Bitcoin has been on a torrid upward trajectory since the start of the year, news of Gensler's exit has pushed Bitcoin to the doorstop of $100,000 USD, it's most psychological barrier to date. So who will the next SEC Chair be and what will their approach be towards crypto?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
U.S. Bets Big On Crypto and What It Means for Canada
Crypto Policy | Nov 21, 2024
Image: Freepik/pvproductions
The U.S. is Making Bold Moves in Crypto
President-elect Donald Trump and his administration are gearing up for key leadership changes to drive innovation policy in the world's largest economy. This includes everything from appointing a new crypto-savvy SEC Chair to a new White House 'crypto czar' and the idea of a U.S sovereign wealth fund backed by digital assets. These policy changes will have ripple effects beyond American boarders. Canada needs to rethink its own strategies to remain competitive.
Who Will Lead the SEC?
It's no secret that the current SEC Chair, Gary Gensler, is considering stepping down after a controversial three and a half years in the post. Reports are saying that Gensler will leave before the end of his term, as early as after U.S. thanksgiving. So with that out of the way, the race to a new SEC Chair is heating up and according to prediction market Kalshi, as of today, the top 3 leading candidates and their odds are:
See: Detroit to Accept Crypto for Taxes with PayPal
- Brian Brooks (33%) - Former top U.S. banking regulator and strong supporter of clear crypto rules and blockchain innovation.
- Robert Stebbins (25%) - Experienced lawyer and former SEC legal chief, known for balancing new tech with investor protections.
- Teresa Goody Guillén (16%) - Blockchain attorney and innovation advocate with deep expertise in digital assets and crypto policy.
The winner will redefine how the SEC approaches crypto policy potentially transitioning from what can only be called aggressive enforcement to a more collaborative approach that also benefits industry. This is one to watch however, thinking back to Gensler's appointment, the crypto industry thought he might be a positive influence on crypto given that he taught a crypto course at MIT Sloan's School of Management and understood blockchain and was also considered more progressive than his peers at the time.
A White House “Crypto Czar”?
Also, Trump's team is considering the creation of a White House crypto advisor position. This 'crypto czar' would act as point on federal policies related to digital assets and help bridge gaps between regulators, policymakers, and industry to help centralize decision making and establish a more transparent path for cyypto innovation in the U.S.
Brian Armstrong on Crypto Dividends for Americans
The CEO of Coinbase, Brian Armstrong, suggested that given America's $35 trillion dollar massive debt, the U.S. should diversify revenue sources and create a sovereign wealth fund and that crypto revenue generated would be distributed as dividends directly to every day Americans saying on X, "Every citizen then has skin in the game. Maybe Congress gets a slightly larger stake".
See: Investing in the Future of AI and Blockchain
The idea has sparked a lively debate. Supporters like Cathie Wood of Ark Invest believes that the idea is transformative and could boost economic freedom and support long term growth. Skeptics on the other hand like Economist Peter Morici highlight the challenges saying it could work but it would require a clear source of funding and national consensus on long term objectives.
Implications for Crypto Regulation
These U.S. crypto manoeuvres will only have a positive impact on crypto given how drastic the current situation is with Gensler at the helm who preferred to regulate by enforcement rather than establish a clear framework for crypto.
- A new SEC chair who understands crypto could bring clarity to whether digital assets are considered securities or commodities, which would reduce the confusion that companies and investors have to deal with today (along with the litany of wells notices).
- Appointed leaders that are pro crypto might prioritize policies that support blockchain technology in effort to help the U.S. lead the global tech race.
- There will be way more collaboration with industry, if the SEC moves away from strict enforcement to having more open conversations with businesses to create a fairer and more supportive regulatory environment for crypto.
The Canadian Perspective
With the U.S. making innovative and bold moves in Crypto, the pressure is heating up for Canada to do the same to remain competitive, or risk falling behind. A friendlier crypto market in the U.S. with a clear regulatory framework could attract top Canadian crypto innovators to leave South.
See: Canada and Trump Risk Index What Fintechs Need to Know
Varying rules north and south of the border will create friction for companies looking to operate in both Canada and the U.S. if rules are different. There's an opportunity for Canada to align with the U.S. on fintech policies which would strengthen North American competitiveness as well.
The Takeaway
As the U.S. is guns a blazing in crypto policy with leadership changes and bold initiatives that could significantly transform industry, Canada needs to adapt quickly to remain competitive or risk falling behind as the U.S. tries to establish itself as a global leader in blockchain innovation.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Rachel Reeves: UK’s Financial Innovation Blueprint
Fintech Policy | Nov 19, 2024
Image: Chancellor of the Exchequer Rachel Reeves
Financial Innovation Vision from the UK's New Chancellor of the Exchequer, Rachel Reeves
The UK has a new Chancellor of the Exchequer, Rachel Reeves, who took office four months ago, delivered her first Mansion House speech on November 14, 2024 to set out her vision for the UK economy. The Chancellor is seen as the second most powerful position in the UK government after the Prime Minister, and has significant control over the country's economic direction and priorities, and works closely with businesses, financial institutions, and global partners to protect and grow the economy.
See: UK Digital Securities Sandbox to Drive Fintech Innovation
In her first major speech, the UK is doubling down with a mix of new technology and financial innovation including the creation of a stock exchange for growing businesses to using blockchain to issue government bonds. Her innovative plans reach pensions, green finance, open banking, and capital markets all to boost growth, attract investment, and make the UK a global leader in financial innovation. Here's a closer look at some of the key announced initiatives and why they matter.
1. A New Stock Exchange Called PISCES
Her speech announced the launch a new stock exchange by May 2025 called Platform for Innovation, Scaling Companies, and Emerging Sectors (PISCES) (Platform for Innovation, Scaling Companies, and Emerging Sectors) designed to help fast growing companies secure the scale-up funding they need to grow and succeed. Part of the idea is to shift capital markets to better support smaller companies with high potential that often face challenges in raising funds or going public.
See: Corporate Venture Capital in Canada: Insights and Challenges
A specialized exchange like this could help attract global investors and provide more liquidity for these companies to access. In Canada, there's the TSXV and CSE both of designed to benefit attractive startups in accessing public markets.
2. Government Bonds on Blockchain
Reeves also announced the pilot launch of a blockchain-based platform to issue government bonds called Digital Gilt Instruments (DIGIT). By using the latest distributed ledger technology (DLT), the UK hopes to improve bond issuance by making it faster, cheaper, and more transparent. For decades, the bond issuance process has largely been untouched. A pilot like this could help transform public finance, offering insights and valuable lessons for governments globally looking to modernize their systems.
Rachel Reeves, UK Chancellor of the Exchequer
“Using distributed ledger technology for DIGIT marks a step change in how we issue government debt, making the process more efficient while maintaining investor confidence.”
3. Creating Pension Megafunds
Reeves announced plans to consolidate local government and work pension plans into Canadian or Australian style 'megafunds' to grow the UK economy. In doing so, she anticipates it to unlock about £80 billion for investment for infrastructure, housing, high growth initiatives. She makes it clear that this is a new strategy in how retirement savings are managed and prioritized in the UK, and such megafunds should be designed to benefit British savers instead of the Canada Pension Plan Investment Board profiting from UK assets.
See: Public Market Challenges and Equity Crowdfunding Capital
Rachel Reeves, UK Chancellor of the Exchequer
"We must ensure that British savers benefit from the returns on productive assets, not just Canadian teachers and Australian professors investing in the UK."
4. Lead the Energy Transition
In her speech, Reeves positioned the United Kingdom as a pioneer in sustainable finance and announced a framework for raising private capital for green projects such as wind farms and solar energy. The plan is to launch the Transition Finance Council in partnership with the City of London Corporation and industry leaders that will work to ensure companies have access to decarbonization finance.
See: AI Leaders and White House Discuss Energy Infrastructure
Given Canada's renewable energy potential, Canada could establish a similar task force focused on attracting private capital for clean energy projects. Collaboration with the UK's Transition Finance Council could help accelerate global efforts to support the energy transition.
5. Regulatory Reform for Growth
Reeves speech mentioned a few ways to recalibrate financial regulations to encourage innovation and growth without compromising stability such as overhauling consumer financial advice rules, and reducing banker pay deferral periods to attract top talent.
See: Insights from the UK’s Pro-Innovation Regulation Review
Rachel Reeves, UK Chancellor of the Exchequer:
“We’ve been regulating for risk, but now it’s time to regulate for growth.”
6. Open Banking and Fintech
She doubled down on the UK's National Payments Vision reaffirming the UKs commitment to open banking, ensuring that customers benefit from improved services from safe data exchange.
Rachel Reeves, UK Chancellor of the Exchequer:
"We are laying the groundwork for London to remain the global hub for financial technology."
Open banking is still developing here in Canada but adoption and growth lessons from the UK can help Canada accelerate the implementation of the initiative which is called 'consumer-driven finance'.
Why It Matters
Rachel Reeve's speech lays out a solid blueprint for using technology and smart policies to drive economic growth for the UK. It's a clear message that says in order to stay competitive, the country has to take bold steps and be open to change. Lessons that Canada should learn from.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Canada and Trump Risk Index What Fintechs Need to Know
Policy | Nov 19, 2024
AI Image
Preparing Canadian Fintechs for an Era of Trump's Policies
The idea of Trump returning to the White House is stirring up questions about how it will shake things up globally, especially for Canada and its fintech companies. The Economist Intelligence developed the Trump Risk Index (TRI) showing just how much trade, security, and immigration policies might shift. For fintechs looking to stay ahead of these changes, it means thinking strategically, staying resilient, and understanding what’s at stake.
Canada is Heavily Dependent on the U.S. Market for Trade
Canada’s economy is closely tied to the United States, its biggest trading partner. In 2023, Canada exported about $439.6 billion USD to the U.S., making up over 70% of its export revenue.
- Trump will likely introduce new trade barriers like tariffs on goods such as aluminum and cars. Trump's America's First policies may also encourage U.S. companies to rely less on foreign suppliers which could adversely affect Canadian fintechs working in areas like supply chain finance and trade facilitation. Same goes for cross-border partnerships for services like payments and lending. These businesses might experience higher costs or disruptions to their operations.
See: Can Fintechs Help Narrow Canada’s Prosperity Gap?
- In September 2024, Canada reported a trade deficit of C$1.26 billion which was larger than expected. This was the seventh month in a row that Canada reported a trade deficit with exports to countries other than the U.S. experiencing significant declines.
- The Canadian dollar has weakened against the U.S. dollar partly due to the uncertainty over U.S. economic policies and has dropped below 1.4 psychological support level. Fintechs that manage international transactions will be impacted by currency fluctuations.
- Fintechs should diversify service providers across multiple regions to offset potential disruptions.
- Fintechs should monitor for any changes in cross-border payment regulations and prepare for adjustments in pricing or service frameworks.
Increased Pressure to Spend More on Security
Canada's defence spending in 2022 was only 1.24% of GDP, one of the lower contributors within NATO. Canada has consistently fallen short of NATO's guideline of 2% of Gross Domestic Product (GDP). Trump has said many times on the campaign trail that the U.S. will push NATO allies including Canada to increase their defence spending or the U.S. will not protect them. In response, Prime Minister Trudeau announced that Canada would meet its 2% GDP target by 2032. So what does this mean for fintech?
- Canada's federal budget will have added pressure making it more difficult to invest in areas like innovation and technology, which is key for fintech growth.
- Also fintech firms need to be aware of indirect effects of a shifting security landscape. For example, greater emphasize may be placed on protecting critical infrastructure such as stricter rules about where data can be stored and how it flows across borders.
See: Reversing Canada’s Digital Economy Productivity Decline
- Fintechs that rely on cloud servers based in the U.S. or that handle sensitive financial data internationally should prioritize compliance with data sovereignty regulations (especially if operating in multiple jurisdictions).
- Fintechs should work with cybersecurity experts to protect their users and environment against increasing risks in a politically charged climate.
Talent Mobility at Risk (Immigration)
If Trump enacts stricter immigration rules in the U.S., it could limit access to skilled labour and make it harder for fintechs to operate offices in the U.S. or attract global talent.
- Skilled professionals in tech and finance might find it harder to obtain U.S. visas, which could impact Canadian companies operating south of the border.
- With the U.S. becoming less welcoming, Canada has the chance to attract global talent. Programs like the Global Talent Stream make it easier and faster for skilled workers to come to Canada, helping fintech companies build innovative and diverse teams.
- But not everyone in Canada sees high immigration levels as a positive. There’s growing debate about how immigration affects the economy and culture. The Canadian government already announced plans to reduce immigration targets. Such reduction will shrink the talent pool for fintech companies who need to keep growing and compete globally.
- Fintechs should continue to build remote work capabilities to optionally access talent from regions unaffected by changing U.S immigration policies.
Regulatory Uncertainty
Based on Trump's initial term, markets can expect to experience deregulation (on some level) and/or abrupt shifts in financial service policies that might disrupt existing frameworks that fintechs rely on, especially in payments, lending and blockcain/crypto.
- President-elect Donald Trump announced that Elon Musk and Vivek Ramaswamy will lead a new private initiative called the Department of Government Efficiency (DOGE) to advise the White House on cutting regulations and reducing spending that would disrupt the system and hold government accountable.
- Trump’s administration could encourage less oversight for banks which might intensify competition for fintech lenders.
See: Innovative Approaches to Smarter Regulation
- Bitcoin and Crypto markets have pumped significantly higher since Trump won the election but some experts are concerned that markets could turn if Trump doesn't deliver many of his campaign promises. Trump is pro-crypto and he already stated that he would fire the current SEC Chair Gary Gensler on day one of assuming office, companies should prepare for a balanced reality where crypto firms could face heightened regulatory scrutiny if the U.S. develops a clear framework for the crypto sector especially around issues like fraud, anti-money laundering, and national security. During Trump's initial term his administration shifted back and forth between support for blockchain innovation and aggressive actions against decentralized cryptos perceived as risky.
- Fintechs should invest in compliance frameworks to adapt to upcoming changes, especially for Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
- It's imperative for companies in both Canada and the U.S to stay current on all regulatory developments.
What This Means for Canadian Fintechs
Canadian fintechs should take a proactive and strategic approach in anticipating of Trump's incoming administration.
- Diversify partnerships and markets beyond the U.S. For example, strengthen ties with Europe through the Canada-European Union Trade Agreement (CETA) or Asia-Pacific markets under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could help reduce dependency on American markets.
- Prioritize regulatory compliance, build adaptable compliance frameworks, and closely monitor U.S. financial regulations, particularly around crypto and blockchain.
See: Canada’s Rising Tax Burden and Fintech Opportunities
- Invest in a good cybersecurity program to minimize potential disruptions.
- Adapt talent acquisition strategies per shifting immigration policies in both the U.S. and Canada.
Why It Matters
The return of Trump to the White House could bring heightened risks but also unique opportunities. Fintechs that want to thrive in this new changing global landscape must proactively prepare for these challenges as soon as possible.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
MicroStrategy Makes Record $4.6 Billion Bitcoin Purchase
Bitcoin | Nov 18, 2o24
Image: Freepik
Michael Saylor Doubles Down on Crypto Dominance, Becomes Largest Institutional Holder of Bitcoin
Between November 11 and 17, 2024, MicroStrategy led by bitcoin maximalist Michael Saylor acquired 51,780 bitcoins at an approximate cost of $4.6 billion. To fund the purchase, MicroStrategy sold 13.6 million shares of its own stock which benefited from strong stock performance, allowing the company to raise the necessary funds without taking on additional debt. This strategy is now the hallmark of Saylor's bitcoin investment approach.
See: 3 Bitcoin Indicators You Should Know About
Since its latest acquisition, MicroStrategy now owns a total of 331,200 bitcoins (average purchase price of $50,000) which are currently worth $30 billion based on market prices and making MicroStrategy the largest institutional holder of bitcoin in the world.
Stock Performance
MicroStrategy’s sole-focus on Bitcoin has boosted its stock price significantly. Since the U.S. presidential election earlier this month, the company’s shares (MSTR) have jumped over 50%, outpacing the performance of Bitcoin itself, which rose 30% during the same time. Investors are feeling optimistic because the newly elected administration supports cryptocurrency, boosting confidence to companies and investors involved in the crypto space.
Although MicroStrategy’s bold Bitcoin strategy has generated big rewards for investors recently, it comes with risks. Since the company’s value is joined at the hip with Bitcoin’s price, a sharp drop in the price of BTC or broad cryptocurrency market could quickly hurt its financial position. Also, some analysts have cautioned that the premium investors are willing to pay for MicroStrategy's stock may decline if market sentiment turns negative.
See: Coinbase Launches COIN50 Index of Top 50 Cryptos
Michael Saylor is one of Bitcoin's most influential and vocal advocates calling it a superior store of value compared to traditional assets. He has outlined plans to even further expand MicroStrategy's Bitcoin holdings by selling more shares in the future and further betting on bitcoin's long term potential.
Outlook
Michael Saylor's bitcoin acquisition strategy is both innovative and risky. While the strategy has been successful so far, it ties the company’s future closely to Bitcoin’s unpredictable price volatility.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
