Crypto Biz: Is Goldman Sachs really the ultimate crypto contrarian
Is the U.S. bank looking to buy distressed crypto firms in the bear market? Newsletter Get this piece of crypto history as a newsletter. Crypto investors would be thrilled to see all the buy opportunities available right now if it was that simple. Don’t get too upset by the bear market. It has been particularly brutal by crypto standards. Cryptocurrency, an unproven asset class, operates in the shadows of regulators. I don’t blame anyone for not buying an asset that’s falling 70% this year. With these caveats in place, a small group of smart money investors believe that now is the best time for Bitcoin (BTC), digital assets, and crypto infrastructure companies. This is even after the massive collapse of FTX. Goldman Sachs, the United States investment giant, is signaling that crypto is now priced fairly after the year-long bear markets. This week’s Crypto Biz features Goldman’s fascination with crypto, a new cold-wallet design from Ledger and Blockstream’s plummeting valuation amid the bear markets. Also, Three Arrows Capital’s latest news. Goldman Sachs reportedly looking for crypto firms to buy after FTX collapseGoldman Sachs’ embrace for crypto seems to be growing, even in the bear market, as the U.S. investment giant looks poised to purchase distressed firms in the wake FTX’s collapse. According to Mathew McDermott, a Goldman executive, crypto companies are priced more sensibly today than they were a year ago. He also stated that regulatory efforts will eventually lead to adoption. McDermott stated that although FTX has become the “poster boy” for crypto, it is not in a good way. However, the technology that underpins the industry “continues its performance.” Ledger’s ‘Father Of the iPod’ helps to create a new cold crypto wallet. The collapse of centralized platforms has been a boon to Ledger, whose hardware company is known for making cold-storage crypto devices. The hardware company announced this week that it had partnered with Tony Fadell (the inventor of the iPod Classic) to create its latest wallet device after receiving a lot of orders for its Ledger Nano devices. The new wallet, called Ledger Stax, measures in at about the same size as a credit card. It also features an E Ink display, wireless charging, and Bluetooth support. Blockstream raises funds to mine Bitcoin at a 70% lower company valuation. Blockstream, a bitcoin infrastructure company, is reportedly looking for new financing. However, it acknowledges that this won’t be an easy task in a bear market. The Adam Back-led company is willing to raise capital at a value of less than $1billion, which is 70% lower than its August 2021 valuation of $3.2billion. According to Back, the additional funding will be used to scale the company’s mining capabilities. According to Cointelegraph, Blockstream is working in partnership with Jack Dorsey’s Block on the development of a solar-powered Bitcoin mining plant in Texas. A federal judge has ordered that the disgraced founders and CEOs of Three Arrows Capital Su Zhu, and Kyle Davies, give up financial information regarding their failed hedge fund. To be served on the founders, the subpoenas require them to give up all “recorded information”, including books, documents, records and papers, relating to 3AC’s financial affairs. 3AC, once valued at $10 million, essentially collapsed in the wake Terra Luna’s infamous death spiral. As arrogant as they were once, Zhu & Davies were exposed for a series horrendous trades that ultimately bankrupted the firm. Bitcoin hits $17K — Bull trap, or relief rally incoming? The price of Bitcoin has remained relatively stable over the past weeks, even though the FTX contagion spread. The price of Bitcoin’s flagship digital asset soared to $17,000 earlier this week, indicating that the worst of the market downturn is over. This week’s Market Report saw me sit down with Marcel Pechman, Joe Hall, and discuss whether BTC can anticipate a relief rally in the near future. I also discussed the “Santa Claus” rally that many believe will take place later in the month. The full replay can be viewed below. [embedded material]Crypto biz delivers your weekly pulse on the business behind crypto and blockchain directly to your inbox every week.