Daily Report | MicroStrategy plans to raise $42 billion over three years to purchase Bitcoin; 95% of popular tokens from 2017 have faded from the market

整理：Fairy，ChainCatcher

Important News:

• Canary Capital submits spot SOL ETF application to the US SEC
• Zhejiang Jingde Court rules virtual currency mining machine sales contract invalid, orders defendant to return payment
• Meta's metaverse division loses $4.4 billion in Q3, cumulative losses exceed $58 billion
• Blueport Interactive founder Wang Feng: proposed company invest in Bitcoin in 2019 but faced shareholder threats of lawsuit
• OpenEden has fired team member accused of attempted rape
• Data: 95% of popular tokens from 2017 have now faded from the market
• MicroStrategy financial report: plans to raise $42 billion over the next 3 years to buy more Bitcoin

"What important events happened in the last 24 hours"

Zhejiang Jingde Court rules virtual currency mining machine sales contract invalid, orders defendant to return payment

According to The Paper, the Zhejiang Jingde Court recently concluded a dispute case regarding the sale of virtual currency mining machines. In April 2021, the plaintiff, Hang, purchased a "mining machine" platform and 64 hard drives from the defendant, Chen, for a total value of 429,000 yuan. After paying the full amount, Chen failed to deliver the equipment as agreed and only refunded 180,000 yuan.

The court cited the National Development and Reform Commission's notice on rectifying virtual currency "mining" activities from September 2021 and the central bank's notice on further preventing and handling risks of virtual currency trading speculation, determining that activities related to virtual currency are illegal financial activities. The court ruled that the mining machine sales contract was invalid due to violation of public order and good morals, ordering the defendant to return the remaining 249,000 yuan.

The appellate court upheld the original ruling, stating that the relevant contract not only violated public order and good morals but also did not comply with the basic principles of resource conservation and environmental protection.

Russia to lift Bitcoin mining ban tomorrow and plans to build mining and AI facilities

Nico Smid, founder of Digital Mining Solutions, stated that Russia plans to build Bitcoin mining and AI computing facilities in BRICS countries, with other countries likely to follow suit by utilizing underutilized energy for Bitcoin mining.

The Russian sovereign wealth fund is collaborating with Russian data center operator BitRiver to construct Bitcoin mining and AI computing facilities for BRICS countries. This project may facilitate BRICS countries settling global trade in Bitcoin—a potential alternative to a basket of local currencies and gold as monetary support.

Russia will lift the Bitcoin mining ban on November 1, but not without restrictions. It requires all Bitcoin miners to register with the Russian Federal Tax Service and submit a list of machine models and wallet addresses.

US SEC has received application to convert Grayscale Digital Large Cap Fund (GDLC) to ETF

Nate Geraci, president of The ETF Store, tweeted that the US Securities and Exchange Commission (SEC) has received an application to convert the Grayscale Digital Large Cap Fund (GDLC) into an ETF. Currently, GDLC holds approximately 77% BTC and 17% ETH, with the remainder in SOL, XRP, and AVAX. The US SEC is now seeking public comments on this.

Meta's metaverse division loses $4.4 billion in Q3, cumulative losses exceed $58 billion

US tech giant Meta's latest financial report shows that its metaverse business continues to lose billions of dollars each quarter. Meta announced its Q3 financial results on Wednesday, stating that its Reality Labs division, which develops augmented reality and virtual reality technologies, incurred an operating loss of $4.43 billion. The loss was slightly smaller than the $4.68 billion expected by analysts surveyed by StreetAccount.

Reality Labs' Q3 revenue grew 29% year-over-year to $270 million, primarily earning through sales of Meta's Quest VR headsets and Ray-Ban Meta smart glasses. Since 2020, Reality Labs' cumulative operating losses have exceeded $58 billion.

Blueport Interactive founder Wang Feng: proposed company invest in Bitcoin in 2019 but faced shareholder threats of lawsuit

Wang Feng, founder of Blueport Interactive, recalled in a social media post today that in 2019 he proposed the company invest $20 million in Bitcoin (then priced at less than $6,000 each), but faced strong opposition and threats of lawsuit from board members and a major shareholder representative. It wasn't until early 2023, after Wang Feng resumed the role of CEO, that the company began to implement the Bitcoin investment plan, but by then the price of Bitcoin had risen to $26,000 each.

This statement stemmed from Wang Feng's comments on MicroStrategy's recent plan to raise $42 billion over the next three years. Notably, MicroStrategy only began to acquire Bitcoin on a large scale in 2020, and had Blueport Interactive executed its investment plan in 2019, it could have achieved considerable returns.

Wang Feng revealed that when he founded Mars Finance in 2018, the platform secured nearly $10 million in funding within a year, with monthly advertising revenue reaching up to 120 Bitcoins, and a single conference in the summer of 2020 could garner approximately 10 million yuan in sponsorship.

Vitalik praises Polygon's ZK contributions, Polygon co-founder expresses gratitude

Daniel Lubarov, a member of the Polygon Zero team, posted on X stating, "Plonky3 can now process over 2 million Poseidon2 hashes per second. The recent acceleration is mainly related to memory: avoiding duplication, skipping zeroing, merging some FFT steps to keep content in cache, etc."

In response, Vitalik Buterin remarked, "2 million hashes/s = 62 MB/s of Merkling is enough to completely re-hash the theoretically maximum size of Ethereum consensus state within a single slot; now please execute blake3 or sha256."

Polygon co-founder Sandeep expressed gratitude for Vitalik's praise of Polygon's ZK contributions, stating that they will continue to work hard.

Bitcoin white paper marks its 16th anniversary

The Bitcoin white paper celebrates its 16th anniversary. Sixteen years ago today (October 31), Bitcoin's anonymous founder Satoshi Nakamoto published the white paper "Bitcoin: A Peer-to-Peer Electronic Cash System" on the cypherpunk mailing list.

Bitcoin mining company Riot Platforms reports a net loss of $154.4 million in Q3

Bitcoin mining company Riot Platforms released its Q3 2024 financial report. The report shows that the company's total revenue for Q3 was $84.8 million, with Bitcoin mining revenue accounting for $67.5 million, resulting in a net loss of $154.4 million, or $0.54 per share, significantly exceeding the market expectation of a loss of $0.18 per share.

In Q3, the company produced 1,104 Bitcoins, roughly on par with the 1,106 produced in the same period last year. As of the end of the quarter, the company held approximately $1.3 billion in cash, restricted cash, and securities, as well as 10,427 Bitcoins.

OpenEden has fired team member accused of attempted rape

OpenEden stated in a Thursday announcement, without disclosing the individual's name (presumably referring to Eugene Ng), "Following yesterday's statement, we have officially terminated the employment of a certain individual associated with OpenEden. We reiterate that this individual no longer represents OpenEden. OpenEden takes these allegations seriously and will not condone this person's personal behavior." Eugene Ng is a founding partner of DWF and co-founded OpenEden with Jeremy Ng, who remains the CEO.

Previous news reported that X user @hananotsorry claimed to have encountered danger while interacting with a partner from DWF Labs, accusing the partner of drugging and attempting to rape the individual, who was subsequently rescued after being informed by relevant restaurant staff.

On October 30, DWF Labs announced on social media that one of its partners was accused of inappropriate and unacceptable behavior. During the investigation, DWF Labs decided to immediately terminate the management and operational duties of the aforementioned partner.

Data: 95% of popular tokens from 2017 have now faded from the market

Cryptocurrency analyst Miles Deutscher revealed data on social platform X showing that the vast majority of cryptocurrency projects that ranked in the top ten by market capitalization since 2017 have faded from the mainstream market. The data indicates that, apart from Bitcoin, Ethereum, and XRP, most of the popular tokens from 2017 have exited the top ten by market capitalization, such as Litecoin (LTC), Monero (XMR), and Ethereum Classic (ETC). Notably, the USDT stablecoin, which rose to prominence in late 2018, has maintained its market capitalization position.

Deutscher pointed out that the cryptocurrency market changes rapidly, and investors need to maintain flexible investment strategies. He advised, "Do not become overly attached to a particular investment target, but rather focus on emerging trends, as these new projects often yield better returns."

US government sells $974,000 ANT seized from Alameda before ANT destruction

According to Arkham data, the US government has sold ANT tokens seized from Alameda Research, marking the first fund transfer from this wallet in nearly two years, with approximately $974,000 worth of cryptocurrency in the wallet. In November 2023, Aragon (token ANT) voted to dissolve and redeem ANT tokens with 86,343 ETH (worth $155 million at the time), requiring users to redeem their ANT tokens by November 2, 2024. After redemption, all ANT tokens will be destroyed, meaning "continuing to hold ANT from now on is meaningless."

Coinbase Q3 earnings and revenue fall short of expectations, stock price plummets in after-hours trading

According to CoinDesk, Coinbase reported total revenue of $1.2 billion in Q3, below market expectations of $1.26 billion. Earnings per share were $0.28, while analysts expected $0.45; Coinbase's adjusted EBITDA for Q3 was $449 million, also below the expected $469.2 million.

Coinbase announced a stock buyback authorization of up to $1 billion in October. This buyback has no expiration date, and the company will purchase stocks based on market conditions. Within minutes of the report's release, the trading platform's stock price fell nearly 7%.

MicroStrategy financial report: plans to raise $42 billion over the next 3 years to buy more Bitcoin

MicroStrategy released its financial report and announced the "21/21 plan," intending to raise $21 billion each through equity and debt over the next three years, totaling $42 billion for purchasing Bitcoin. Company president and CEO Phong Le stated that as a Bitcoin reserve company, they will use the new funds to buy more Bitcoin to achieve a higher "BTC yield."

It is reported that MicroStrategy's last purchase occurred in mid-September 2024, when it acquired 7,420 Bitcoins for $458.2 million. The company currently holds 252,220 Bitcoins, with a total investment of $9.9 billion and an average purchase price of $39,266. Based on the current price of approximately $72,000, the market value of the holdings exceeds $18 billion.

Additionally, the company has raised its "BTC yield" target range from the previous 4%-8% to 6%-10%, with an actual yield of 17.8% in Q3.

Canary Capital submits spot SOL ETF application to the US SEC

Fox Business reporter Eleanor Terrett posted on social media that cryptocurrency investment firm Canary Capital has submitted a SOL ETF application to the US SEC.

This is the third cryptocurrency ETF application submitted by the company this month, following applications for LTC ETF and XRP ETF.

"What are some must-read articles from the last 24 hours"

2024 Asia-Pacific Web3 Early Investor Research Report: RootData is the preferred data platform for early investors, DeFi is currently the most undervalued track

As the Web3 industry enters a new development cycle, the Asia-Pacific market, with its rich developer and investor resources, is rapidly becoming an important part of the global Web3 ecosystem. To gain insights into the dynamics of this key market, ChainCatcher collaborated with Taiwan's leading crypto media platform Blocktempo to conduct a comprehensive survey on the research methods of early investors in Asia-Pacific Web3. Ultimately, 1,084 questionnaires were collected, providing valuable firsthand data for the industry to understand the early investor group in Web3.

Ordinals protocol founder releases new rune, is it as expected?

If you are familiar with the Runes protocol, you should know that rune number 0 "UNCOMMON•GOODS," was the first rune to be inscribed (deployed) after the Runes protocol went live, created by Casey. However, this rune is "limited time and unlimited quantity," and the minting period lasts a full 4 years, making it difficult to create short-term speculative space.

However, last week, Casey made another move. This time, he inscribed a new rune named "MEMENTO•MORI" on rune number 0, with a total of 100 million (100,000 pieces). Half of that total, or 50 million (50,000 pieces), has already been airdropped at Bitcoin block height 868113, targeting users who subscribed to the Bitcoin podcast "Hell Money" and submitted their airdrop addresses, which is co-hosted by Casey and Erin Redwing.

According to Casey and Erin in the Hell Money podcast, "MEMENTO•MORI" was not a random idea. First, before the rune protocol went live, Casey proposed a hard-coded idea for the first 10 runes (essentially deploying the first 10 runes directly), although this idea was ultimately not implemented, "MEMENTO•MORI" was one of the considerations for those 10 runes at that time.

"MEMENTO•MORI" is a Latin phrase meaning "remember that you will die," reminding people to reflect on the brevity of life and the inevitability of death, encouraging them to confront the limitations of life in their daily lives, cherish the present, and live a meaningful life rather than being solely obsessed with material wealth or fame. The rune was ultimately inscribed on the "skull" image of rune number 0, corresponding to this theme and the spooky atmosphere of Halloween.

Polymarket's trading volume suspected to be inconsistent with on-chain data, how severe is the "wash trading"?

The prediction market Polymarket gained popularity during the 2024 US presidential election, reporting that the betting amount on whether Trump or Harris would win in early November has reached $2.7 billion.

Despite Polymarket's odds being widely circulated on social media and mainstream media, analysts from two crypto research firms found rampant wash trading on Polymarket. Notably, Polymarket currently shows a 67% chance of Trump winning.

In independent investigations conducted by blockchain companies Chaos Labs and Inca Digital, analysts found signs of wash trading on the Polymarket platform. Wash trading is a form of market manipulation where stocks are repeatedly bought and sold simultaneously to create a false appearance of trading volume and activity. Chaos Labs reported that wash trading accounted for about one-third of the trading volume in Polymarket's presidential election market, while Inca Digital found that "a large portion of the trading volume" in the market may be attributed to potential wash trading.