(Bloomberg) -- Mike Novogratz’s Galaxy Digital Holdings agreed to buy crypto custodian BitGo Inc. in a cash and stock transaction valued at about $1.2 billion.Galaxy is paying $265 million in cash and is issuing 33.8 million shares to finance the acquisition. BitGo shareholders will own 10% of the company. The deal broadens Galaxy’s offerings and geographic reach.“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology,” Novogratz, Galaxy’s New York-based chief executive officer and founder, said in a statement.Cryptocurrency prime broker BitGo was founded in 2013 by Mike Belshe, an engineer who’s previously worked on Google’s Chrome. He’s joining Galaxy as deputy chief executive officer and will become a member of the company’s board of directors.“Joining Galaxy Digital represents an exciting new chapter for our business, as our current clients gain access to a wide set of financial solutions,” Belshe said in a release.BitGo, with over 400 institutional clients, has more than $40 billion in assets under custody and serves over 150 exchanges, according to a press release. The company processes roughly 30 billion transactions per month and supports the custody of more than 400 coins and tokens.“We’ve built this company where we invested in all things blockchain, we traded and participated on top of the blockchain, and now with the 60-plus blockchain engineers, we actually get to build the infrastructure of the future,” Novogratz said in an interview on Bloomberg Television.It’s the second high-profile acquisition in the crypto space in recent days. Coinbase Global Inc., the newly public crypto firm, at the end of April acquired Skew, a data analytics and trade execution platform focused on cryptocurrency derivatives.The cryptosphere has grown in recent months as institutional and retail investors take a greater interest amid a red-hot rally in digital-asset prices. Bitcoin, the largest digital coin, has gained more than 500% over the past year. The Bloomberg Galaxy Crypto Index, which tracks multiple cryptocurrencies, is up nearly 800% over the same period.(Updates with comments from BTV interview.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Stocks almost wiped out their gains as technology shares turned lower, offsetting optimism over solid corporate earnings and economic reports. Treasuries climbed.The S&P 500 notched an advance of less than 0.1% while the Nasdaq 100 ended in the red. The Dow Jones Industrial Average rose to a fresh record. Moderna and Johnson & Johnson retreated, while Pfizer finished little changed on news the U.S. will support a proposal to waive intellectual-property protections for Covid-19 shots. Peloton tumbled after recalling its treadmill products. Copper and lumber rallied, adding to inflation worries.As the world’s largest economy rebounds, an intense debate has emerged over whether actual price pressures are set to materialize. The five-year breakeven rate -- a proxy for the annual inflation rate bond traders expect over the span -- jumped to the highest since 2008. Despite the increase in commodity prices and supply shortages, several Fed officials said Wednesday that inflation is unlikely to get out of control.Money managers who’ve spent the bulk of their careers profiting from deflationary trends need to quickly switch gears or risk an “inflation shock” to their portfolios, warned JPMorgan Chase & Co. chief global markets strategist Marko Kolanovic.“Given the still high unemployment, and a decade of inflation undershoot, central banks will likely tolerate higher inflation and see it as temporary,” he wrote. “The question that matters the most is if asset managers will make a significant change in allocations to express an increased probability of a more persistent inflation.”Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 was little changed as of 4 p.m. New York timeThe Nasdaq 100 fell 0.3%The Dow Jones Industrial Average rose 0.3%The MSCI World index rose 0.3%CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.2003The British pound rose 0.1% to $1.3907The Japanese yen rose 0.1% to 109.20 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.57%Germany’s 10-year yield advanced one basis point to -0.23%Britain’s 10-year yield advanced two basis points to 0.82%CommoditiesWest Texas Intermediate crude fell 0.6% to $65 a barrelGold futures rose 0.6% to $1,787 an ounceFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Berkshire Hathaway Inc shareholders can accept Chairman Warren Buffett's hostility to bitcoin, blank-check acquisition firms and wild bets on trading app Robinhood. Buffett and his board opposed two shareholder resolutions at Berkshire Hathaway's annual shareholder meeting last week that called for annual reports on how its companies are responding to the challenge of climate change, as well as reports on diversity and inclusion in the workplace.
(Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereIndia’s central bank announced new loan-relief measures for small businesses and pledged to inject 500 billion rupees ($6.8 billion) of liquidity to support the economy against a second deadly coronavirus wave.Some businesses will be eligible for loan restructuring to give them more time to repay debt and keep them going through the pandemic, Reserve Bank of India Governor Shaktikanta Das said in an unscheduled address on Wednesday. He also announced steps to boost credit for health care services, provide fresh lending to vaccine-makers and a bond-buying program.The Covid-19 wave that has slammed India in recent weeks is likely to worsen before tapering off sometime later this month, forecasters warn. Pressure from industry groups has started mounting on Prime Minister Narendra Modi to impose lockdowns across the country to stem its spread, a move he has so far resisted to avoid the economic damage suffered last year.“Given the state of daily infections and the impact on economy, the announced measures are a start, but perhaps not material enough to help the financial sector,” said Saswata Guha, senior director of financial institutions at Fitch Ratings Ltd. in India. “The impact of the second wave can be much more on the small businesses and individual borrowers.”READ: World’s Biggest Covid Crisis Threatens Modi’s Grip on IndiaSovereign bonds gained, with the yield on benchmark 10-year notes falling two basis points to 5.99%. Banking shares rose 1.1%, outperforming a 0.6% gain in the bellwether stocks index. The rupee weakened to 73.97 versus the dollar.“The devastating speed with which the virus affects different regions of the country has to be matched by swift-footed and wide-ranging actions that are calibrated, sequenced and well-timed so as to reach out to various sections of society and business right down to the smallest and the most vulnerable,” Das said.Here are the key takeaways from Das’s speech:RBI to buy 350 billion rupees of bonds under the ‘Government Securities Acquisition Programme’ -- India’s version of quantitative easing -- on May 20Sees outlook ‘highly uncertain’ and clouded with downside risks, but doesn’t see a major change to inflation forecastCentral bank allowed lenders to dip into their floating provisions to set aside money for bad loans till March 31 2022Small businesses can avail a fresh loan recast, provided they weren’t part of a previous program last September and were servicing debt regularly as of March 31RBI will provide separate liquidity of up to 100 billion rupees ($1.4 billion) via three-year repo operations to small finance banks to lend to poor borrowersDas has been meeting with bankers and shadow lenders in recent weeks to discuss the economic situation, possible stress to balance sheets and credit flow in the system.Localized lockdowns imposed by Indian states to flatten the world’s fastest-rising pandemic curve have already started to impact businesses and jobs, with the potential to increase the number of problem loans.(Updates with analyst comment in third paragraph, details in fourth and fifth.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
If the economic reports don’t move gold prices then comments from Chicago Federal Reserve Bank President Charles Evans could.
Cathie Wood's ARK Innovation exchange-traded fund is significantly oversold and due for a bounce, but if it doesn't come the popular fund risks suffering a “waterfall” decline, says one chart watcher.
(Bloomberg) -- Jeff Bezos sold about $2.5 billion of Amazon.com Inc. stock, his first big disposal this year after offloading more than $10 billion worth of shares in 2020.Bezos sold around 739,000 shares this week under a pre-arranged trading plan, according to U.S. Securities and Exchange Commission filings. He plans to sell as many as 2 million shares, according to a separate filing.The world’s richest person continues to hold more than 10% of Amazon.com, the primary source of his $191.3 billion fortune, according to the Bloomberg Billionaires Index. In the 15 years after Amazon.com went public in 1997, Bezos sold about a fifth of the online retailer for roughly $2 billion. The value of his stake has ballooned in recent years to such an extent that he can now sell relatively small amounts for billions of dollars.Amazon stock is little changed this year after rallying 76% in 2020 as the Covid-19 pandemic kept people away from physical stores and encouraged online shopping.The Amazon founder has used stock sales to fund rocket company Blue Origin, while he’s committed $10 billion to the “Bezos Earth Fund” to help counter the effects of climate change.The rocket maker said Wednesday it has set July 20 for its first mission carrying people to space and plans to auction off one seat on its New Shepard rocket.Bezos would be far richer if it weren’t for his divorce from MacKenzie Scott. She received a 4% stake in Amazon as part of the split and quickly became one of the world’s most important philanthropists.(Updates with Blue Origin plans in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
It appears that Shark Tank investor Kevin O’Leary no longer thinks bitcoin is “garbage.” The chairman of O’Shares ETF told Yahoo Finance Live that he’s allocated 3% of his portfolio to the world’s largest cryptocurrency after his native Canada, and a handful of other countries, eased restrictions on institutional buying of the asset.
A year into the pandemic, some homeowners say loan servicers aren't giving them clear information about mortgage forbearance.
The cryptocurrency that no one was meant to take seriously spiked to just under 70¢ before losing a little ground.
Wealthy investor Mike Novogratz says that the run-up in dogecoin is a reflection of the disenchantment of younger investors in the current state of financial markets and the economy and cautioned that trying to bet on the parody coin at these current levels is dangerous.
Since January, the price of Bitcoin has surged 89%. But another major cryptocurrency has posted even larger returns.
(Bloomberg) -- Investors are piling back into some of the fringe corners of the cryptocurrency world, with the frenzy sending Dogecoin surging more than 50% again and crashing Robinhood’s trading app.Other so-called altcoins also took off, with Dash spiking 18% over a 24-hour period through the European morning on Wednesday and Ethereum Classic rising almost 45%. In the world of DeFi, tokens such as Force DAO and Tierion surged more than 1,000% on Tuesday, according to CoinMarketCap.com data. Meanwhile, Robinhood said it resolved earlier issues with crypto trading on its platform.“You have money looking for a home and this is one of those areas of the market where there is speculation happening, there is significant appreciation happening in a short period of time,” said Chad Oviatt, director of investment management at Huntington Private Bank. “You get that excitement there.”The rallies defied easy explanation and continued a trend that’s seen the value of all digital tokens surge past $2.3 trillion. Doge, created as a joke in 2013, has been used in marketing gimmicks -- the latest by the Oakland A’s baseball team, which offered two seats to games this week for 100 Dogecoin. The Gemini crypto exchange backed by Tyler and Cameron Winklevoss said it now supports Doge, and will soon enable trading of it.Dogecoin’s red-hot advance from around 0.002 cents a year ago -- when it was worth about $300 million -- has captured the interest of many on Wall Street. It’s even caught the attention of the Federal Reserve -- the central bank’s chairman last week answered “some of the asset prices are high” when asked if things like GameStop Corp.’s and Dogecoin’s supercharged rallies created threats to financial stability.As a sign of Dogecoin’s rising popularity, the Robinhood app is among the top 10 downloads at the Apple App Store. Meanwhile, Coinbase Global, the largest U.S. crypto exchange -- which doesn’t offer Doge trading -- saw its shares fall 4.6% Tuesday, its lowest close since its market debut last month.“It’s pretty amazing that something that started out as a joke has become so popular,” said Matt Maley, chief market strategist for Miller Tabak + Co.Though interest in digital assets has picked up in recent months as more traditional firms who were long hesitant to the crypto space warm up to cryptocurrencies, it’s alternative coins that have captured the most attention in recent days. Bitcoin has taken a backseat following record-setting rallies from Ether and Doge, wrote Edward Moya, senior market analyst at Oanda.“The Dogecoin bubble should have popped by now, but institutional interest is trying to take advantage of this momentum and that could support another push higher,” he said in a note. “Dogecoin is surging because many cryptocurrency traders do not want to miss out on any buzz that stems from Elon Musk’s hosting of Saturday Night Live.”Elsewhere, a new Ether ETF trading in Canada called the CI Galaxy Ethereum ETF (ETHX) broke its record volume on Tuesday. It’s up more than 20% in the first two days of the week.Bitcoin rose modestly on Wednesday, snapping a three-day losing streak. It was up 0.8% to $55,213 as of 9:29 a.m. in London on Wednesday.Meanwhile, many -- including famed crypto investor Mike Novogratz -- have warned that the rallies could be unsustainable. Novogratz, chief executive officer of Galaxy Digital Holdings, said recently he’d be “very, very worried” were one of his friends to invest in Doge.“It seems that investors are careening from one hot dot to another, like a pinball game,” said Mike Bailey, director of research at FBB Capital Partners. “My sense is this speculative wave will suffer the same fate as the GME and other Robinhood ‘flash-in-the-pan’ stocks. Cryptocurrencies may have become a new asset class, like precious metals, but surges such as these seem unsustainable.”(Updates prices throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Caesars Entertainment Inc. shares spiked in after-hours trading Tuesday after the casino company revealed another big loss in the first quarter, but outlined a strong rebound in the works in Las Vegas.
The trading app experienced issues with crypto trading, and users are furious.
Though mortgage rates are at their lowest levels in months, refinance activity is quieter.
In July, the IRS will begin sending monthly payments of $250 or $300 to low- and moderate-income families who qualify for the child tax credit.
The housing market is red hot at the moment, with the Case-Shiller index soaring. But Morgan Stanley has some good reasons why the current situation isn't a bubble.
Prices are on the rise, but there are ways you can lessen the impact on your wallet.
(Bloomberg) -- Cascade Investment, a holding company Bill Gates created with the proceeds of Microsoft Corp. stock sales and dividends, transferred securities worth more than $1.8 billion to Melinda French Gates, a day after the pair announced their divorce after 27 years of marriage.Melinda Gates is now the beneficial owner of 14.1 million shares of Canadian National Railway Co. worth about $1.5 billion, according to a Securities and Exchange Commission filing dated May 3. Cascade also transferred 2.94 million shares in AutoNation Inc., worth $309 million.Through Cascade, Gates has interests in real estate, energy and hospitality as well as stakes in dozens of public companies, including Deere & Co. and Republic Services Inc. The couple are also among the largest landowners in America.Gates is worth $145.4 billion, according to the Bloomberg Billionaires Index.(Updates with other Cascade holdings in third paragraph. An earlier version corrected the size of the transferred stock.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.