Bitcoin ETFs finally reverse trend, see over $330 million in inflows
The coin’s price is trending up too.
Wednesday is turning out to be a big day for bitcoin, with American Bitcoin, Hut 8 subsidiary backed by the Trump brothers, debuting today. Shares jumped 91% this morning and were up 44% in early afternoon trading.
Bitcoin spot ETFs finally reversed their outflow trend to net $332.7 million in inflows on Tuesday, according to SoSoValue, while bitcoin’s price is regaining some ground, up 1.3% in the last 24 hours.
In other bitcoin news...
Treasury, a euro-denominated bitcoin treasury company, announced it has raised $147 million, backed by Winklevoss Capital and Nakamoto Holdings. The company has acquired 1,000 bitcoin, according to the press release.
Riot Platforms announced it produced 477 bitcoin in last month, “an all-time high for Riot in the month of August” and a 48% year-over-year increase, Riot CEO Jason Les said in a press release (though August’s bitcoin production also represents a 2% month-over-month decrease). The bitcoin miner now holds 19,239 bitcoin.
Strategy announced it has increased the dividend on its perpetual preferred stock STRC to 10% from 9%. Mark Palmer, a Benchmark analyst, wrote that despite retail traders blaming the firm for mismanaging “the capital-markets side of the company’s bitcoin accumulation strategy, thereby causing the stock’s recent and uncharacteristic weakness,” he believes that “gets the causality backwards.” The stock has tumbled more than 10% in the past month. Despite the stock’s underperformance, Benchmark reiterated its “buy” rating on the company with a price target of $705 because it remains “the industry standard and benchmark due not only the size of its holdings, but also the financial architecture it has built around bitcoin,” Palmer wrote.
Meanwhile, TD analysts also reiterated their “buy” rating on Strategy. They cut their price target, though, to $640 from $680.
“Bears have pounced on the company’s return to common stock issuance, as if issuing shares at a premium to bitcoin value — in order to purchase more bitcoin — is suddenly a bad idea,” analysts wrote in a note.
