Crypto Biz. Bitfarms and cryptocurrency mine Riot Platforms’ legal battle has recently heated up. With the acquisition of around six million shares valued at over $111 million, Riot Platforms increased its total position in Bitfarms from 9.25% to 13.1%, as announced on June 11. Bitfarms proposed a “poison pill” defensive plan the day before to stop Riot from boosting its share to 15% or higher. The goal of the defensive mechanism is to make Riot’s takeover attempts more difficult by reducing the value of the shares.
In April, Riot proposed a massive premium above Bitfarms’s share price to acquire the company. Bitfarms’ board of directors turned down the offer. Significant internal strife inside Bitfarms forms a backdrop to the argument. Following his resignation as CEO in May, the company has been coping with the aftermath of the $27 million in damages, wrongful dismissal, and breach of contract claims filed by former CEO Geoffrey Morphy. A resolution to the disagreement between the corporations appears to be in the distant future.
This week’s Crypto Biz topics covered include Ripple Labs’ new custodian arrangement, Circle’s programmable wallets on Solana, Tether’s $1 billion entrepreneur budget, and Fireblocks’ cooperation with Coinbase.
“Not a classic VC” — Tether plans to invest up to $1 billion in one year
According to CEO Paolo Ardoino, stablecoin behemoth Tether intends to pour considerable profits into developing markets, AI, and biotech-related technology. In a June 11 interview with Bloomberg, Arduino stated that Tether’s venture capital arm plans to invest $1 billion into deals within the following year. Tether has a rapidly expanding team of fifteen people reviewing hundreds of ideas monthly, says the CEO. Tether’s venture capital arm has invested about $2 billion in technology such as artificial intelligence and alternative financial infrastructure in the last two years.
Ripple Labs closes Standard Custody acquisition deal
Crypto Biz: Ripple Labs is the proud owner of Standard Custody, a digital asset custodian. For Ripple, this acquisition could be a stepping stone toward its larger objective of tokenizing real-world assets and launching a stablecoin pegged to the US dollar. The agreement calls for Standard Custody’s current CEO, Jack McDonald, to also serve as Ripple’s senior vice president of stablecoins. Pointing to the company’s regulatory approval from the New York Department of Financial Services, Ripple emphasized Standard Custody’s license as a significant element of the digital asset custodian. Ripple has acquired a digital asset custody firm for the second time. It spent $250 million in 2023 to acquire Metacaco.
Circle announces Solana programmable wallets, gas station
Web3 services offered by Circle will soon include support for the Solana blockchain, allowing users to use features like programmable wallets and petrol stations. The integration will occur in two stages, as announced on June 12. Programmable wallets and sponsored transaction fees through its petrol station feature will be the primary focus of the first phase. As for the second phase, Circle has already announced that the Smart Contract Platform would enable program interactions and non-fungible token support. Due to this change, Solana will now be compatible with Circle’s Web3 services, which are compatible with Ethereum, Polygon, and Avalanche.
Fireblocks add Coinbase International for spot, perpetual futures
To further serve its institutional clientele, Fireblocks has partnered with Coinbase to launch perpetual futures and spot trading on the Coinbase International Exchange. Due to the integration, Fireblocks may now handle spot contracts and perpetual futures, expanding trading choices within established security and governance norms. To access the new features, a user must be in an “eligible jurisdiction” outside the US. Neither the website nor the Terms of Service of the Bermuda-based corporation Coinbase International specify which countries it serves..
