Rewritten Content
This week’s Crypto Biz delves into the intensifying corporate clash between Riot Platforms and Bitfarms, Tether’s substantial $1 billion budget for startups, Ripple Labs’ new custodian acquisition, and more.
Riot Platforms vs. Bitfarms: A Growing Conflict
The corporate dispute between crypto mining giants Riot Platforms and Bitfarms has reached new heights. On June 11, Riot Platforms announced it had significantly increased its stake in Bitfarms, acquiring approximately six million shares worth over $111 million, raising its total holding from 9.25% to 13.1%.
This move came just a day after Bitfarms proposed a “poison pill” defense strategy to prevent Riot from increasing its stake to 15% or more. This strategy aims to dilute the value of shares and obstruct Riot’s takeover efforts.
In April, Riot offered to acquire Bitfarms at a considerable premium above the market price, but Bitfarms’ board rejected the proposal.
The backdrop to this dispute includes significant internal turmoil at Bitfarms. Since May, the company has been grappling with the fallout from firing its CEO, Geoffrey Morphy, who has sued for breach of contract, wrongful dismissal, and $27 million in damages. The conflict between the companies shows no signs of resolution.
Tether’s $1 Billion Startup Budget
Tether plans to invest up to $1 billion in startups over the next year. According to CEO Paolo Ardoino, the stablecoin giant will focus on emerging markets, artificial intelligence (AI), and biotech. Tether’s venture capital arm has already spent around $2 billion on technologies like AI and alternative financial infrastructure over the past two years.
Ripple Labs’ Custodian Acquisition
Ripple Labs has completed the acquisition of digital asset custodian Standard Custody. This strategic move could support Ripple’s plans to launch a U.S. dollar stablecoin and tokenize real-world assets. As part of the deal, Standard Custody CEO Jack McDonald will join Ripple as senior vice president of stablecoins while retaining his role as CEO of Standard Custody.
Circle’s Solana Integration
Circle is expanding its Web3 services to include the Solana blockchain, introducing features such as programmable wallets and gas stations. This integration will occur in two phases, beginning with programmable wallets and sponsored transaction fees. The second phase will include support for non-fungible tokens and program interactions through the Smart Contract Platform. This move aligns Solana with other blockchains supported by Circle’s Web3 services, including Ethereum, Polygon, and Avalanche.
Fireblocks and Coinbase International Partnership
Fireblocks has partnered with Coinbase to enhance its trading services by introducing perpetual futures and spot trading through the Coinbase International Exchange. This integration aims to provide institutional investors with advanced trading options, adhering to predefined security and governance protocols. These new features are available to users in eligible jurisdictions outside the United States.
