Crypto Daily | Coinbase $2 Billion Convertible Bond Extends Crypto Fundraising; Binance Founder CZ Seeks $1.76B Suit Dismissal

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Crypto Market Sinks as Stagflation Fears Mount

Crypto markets broadly retreated after weaker-than-expected U.S. ISM Non-Manufacturing PMI data heightened stagflation concerns. Bitcoin fell 0.76% to $113,000, while Ethereum dropped 2.43% below $3,600 on early Asian trading hours. XRP is trading at $2.92, 4% down in the past 24 hours.

Coinbase $2 Billion Convertible Bond Extends Crypto Fundraising

Coinbase Global Inc. is raising $2 billion from the sale of convertible bonds, joining a rush of cryptocurrency-focused companies tapping the market to lock in cheap capital.

The largest US crypto exchange plans to use the proceeds for purposes including potentially repurchasing stock and redeeming outstanding debt, according to an announcement.

Coinbase’s deal is being marketed in two tranches with a 0% coupon due in 2029 and 2032, according to people familiar with the matter. The bonds due in 2029 are being offered with a conversion premium of 50% to 55% and the seven-year tranche due in 2032 is marketed with a premium of 30% to 35%, the people said.

Binance Founder CZ Asks Court to Dismiss $1.76B Clawback Lawsuit Filed by FT

Ex-Binance CEO Changpeng “CZ” Zhao has asked a bankruptcy court to dismiss him from a $1.76 billion clawback suit filed by the FTX trust. The now-bankrupt FTX claims that the funds were “improperly transferred” by Sam Bankman-Fried.

According to Bloomberg Law, CZ claimed that he’s a resident of the United Arab Emirates and that the FTX trust can’t claim it is within Delaware’s jurisdiction.

Galaxy Digital Unstakes 250,000 SOL Worth $40.7M, Transfers to Binance

Galaxy Digital recently unstaked 250,000 Solana (SOL) tokens, valued at approximately $40.7 million, and transferred the full amount to Binance, according to on-chain data monitored by Lookonchain.

The move, made around three hours ago, has sparked speculation about a potential selloff.

Michael Novogratz Signals Crypto Treasury Craze Likely Past Its Peak

Michael Novogratz says the rush to create companies holding cryptocurrencies on their balance sheets may have already peaked.

The Galaxy Digital founder and CEO made the comments Tuesday during the firm’s second-quarter earnings call.

“We’ve probably gone through peak treasury company issuance,” Novogratz said. “The question now is which of the existing companies become monsters.”

Ethereum already has two major corporate treasury holders, Tom Lee’s BitMine and Joe Lubin’s SharpLink. Novogratz expects both to keep expanding but warned that new entrants may “have a harder time getting oxygen” as the space becomes more saturated.

Bitcoin Spot ETF Flow

The overall net outflow of the US Bitcoin spot ETF on Tuesday was $196.18 million. The total net asset value of Bitcoin spot ETFs is $146.18 billion, and the ETF net asset ratio (market value compared to total Bitcoin market value) is 6.46%.

Source: SoSoValue

The Bitcoin spot ETF with the highest net outflow on Aug 5 was Fidelity Wise Origin Bitcoin Fund, with a net outflow of $99.11 million. Followed by iShares Bitcoin Trust ETF, with a net outflow of 77.42 million, according to SoSoValue.

Source: SoSoValue