Crypto Daily | Ethereum Drops Below $4,000; Google-Linked Crypto Miner TeraWulf Plans $3 Billion Debt for Data Center

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Bitcoin (BTC) Drops to $109,567 with a 1.9% Decrease in 24 Hours

Bitcoin (BTC) dropped to $109,567, with a 1.9% decrease in 24 hours.

Ethereum (ETH) Drops Below $4,000 with a 1.5% Decrease in 24 Hours

Ethereum (ETH) dropped below $4,000 and is now trading at $3,945, with a 1.5% decrease in 24 hours.

Unusual Trading Ahead of Crypto-Treasury Deals Draws Scrutiny From U.S. Regulators

Financial regulators have examined unusual trading patterns in the shares of companies that sought to make buying cryptocurrencies their core corporate strategy, people familiar with the matter said. 

The Securities and Exchange Commission and the Financial Industry Regulatory Authority have reached out to some of the more than 200 companies that announced this year that they would adopt a crypto-treasury strategy, the people said. 

In those conversations and letters, the regulators have raised concerns about what they say were unusually high trading volumes and sharp stock-price gains in the days leading up to the companies’ announcements. 

Google-Linked Crypto Miner Plans $3 Billion Debt for Data Center

TeraWulf Inc. Inc. is expected to raise approximately $3 billion to support the build-out of its data centers via a structure supported by Google Inc., according to Patrick Fleury, the crypto miner’s finance chief.

Morgan Stanley is arranging the potential transaction for TeraWulf, and a deal — in either the high-yield bond or leveraged loan markets — could launch as soon as October, Fleury said in an interview with Bloomberg News.

Credit rating firms are currently determining where to rank the transaction between the scale of BB and CCC ratings that typically apply to junk-rated debt. Google is expected to backstop the deal, a move that could give it a higher rating.

Google Backs Crypto Miner Deal In Rush for AI Data Centers

Alphabet’s Google has agreed to anchor a $3 billion data center contract with Cipher Mining Inc. in the latest tie up between a crypto mining firm and a big tech company seeking computing resources for artificial intelligence.

Google will guarantee $1.4 billion of AI computing startup Fluidstack’s $3 billion, 10-year agreement with Cipher, Cipher said in a statement on Thursday. Google will also get the right to buy a 5.4% stake in Cipher, it said.

It’s the second such deal Google and Fluidstack struck in the last two months, a sign of the rampant demand for resources to power artificial intelligence services. Google is one of the largest spenders on computing capacity in Silicon Valley, deploying tens of billions of dollars a year for its products and cloud business. The company mostly spends on its own data centers, but it has started, like its rival Microsoft Corp., to partner with newer AI cloud specialists, such as Fluidstack, as a way to access additional computing resources.

SharpLink to Tokenize SEC-Registered Common Stock on Ethereum Blockchain

SharpLink Gaming, a major corporate holder of Ether, plans to create digital tokens of its common stock on the Ethereum blockchain, with fintech firm Superstate managing the token transfers.

SharpLink plans to tokenize its SEC-registered equity on Ethereum through Superstate's Opening Bell platform, expanding the latter's multichain capital markets infrastructure.

OTC Whale Faces Significant Losses After Recent Ethereum Purchase

According to BlockBeats On-chain Detection, a major over-the-counter (OTC) trader recently acquired 60,333 Ethereum (ETH) at an average price of $4,230 per unit over the past week, totaling approximately $238.7 million. The transaction has resulted in a floating loss exceeding $16 million.

Citi Projects Significant Growth in Stablecoin Issuance by 2030

Citi has released a new report predicting that the issuance of stablecoins could reach a baseline of $1.9 trillion by 2030, with a potential increase to $4 trillion in a bullish market scenario. The report suggests that if stablecoins circulate at a speed comparable to fiat currencies, annual transaction volumes could range from $100 trillion to $200 trillion.

ETH Spot ETF Flow

The overall net outflow of the US ETH spot ETF on Thursday was $251.2 million. The total net asset value of ETH spot ETFs is $25.59 billion, and the ETF net asset ratio (market value compared to total ETH market value) is 5.46%.

The ETH spot ETF with the highest net outflow on Sep 25 was Fidelity Ethereum Fund, with a net outflow of $158.07 million. Followed by Grayscale Ethereum Trust ETF, with a net outflow of 30.27 million, according to SoSoValue.