Today, early in the morning in Asia, Block Inc. CEO Jack Dorsey unveiled the company’s most recent strategy. Dorsey announced that it plans to use the dollar-cost averaging (DCA) technique to buy Bitcoin (BTC) on a monthly basis.
Block’s Bitcoin DCA strategy details are revealed
Regardless of how much an asset’s price fluctuates, the same dollar amount is invested in it on a regular basis using the dollar-cost averaging method of investing. This technique lessens the effect of volatility on the purchase as a whole.
Therefore, businesses like Block that own Bitcoin may use DCA to proactively manage the volatility nature of Bitcoin. This strategy also has the potential to eventually result in a reduced average cost per share.
In its formal announcement, Block gave further information on how they plan to put the DCA approach into practice. 10% of the company’s gross income from Bitcoin-related items would go into monthly Bitcoin purchases, according to the announcement.
“Under the DCA program, we plan to purchase Bitcoin on a monthly basis, starting April 2024. We will execute these over a shorter time window due to lower notional trade values and improved Bitcoin liquidity compared to 2020 and 2021. To reduce slippage, we have chosen to purchase Bitcoin over a two-hour window that has historically had the greatest amount of liquidity,” the company explained.
Block has always had a portfolio focused on Bitcoin. When the corporation bought 4,709 Bitcoins in October 2020 at an average price of $10,618 per, it made news.
3,318 BTC were added in February 2021 as a result of later investments, each of which cost $51,236. According to the financial sheet of the business as of March 31, 2024, Block admitted possessing 8,038 BTC.
These first investments have shown to be profitable. Block stated that its original $233 million investment in Bitcoin has increased to over $573 million within the same reporting period, a 146% rise. The $233 million Bitcoin investment’s remeasurement gain was a factor in its first-quarter 2024 net income.
Block’s role in the Bitcoin ecosystem has changed dramatically from acquisitions to this point. A new service called “Bitcoin Conversions” for Square users has been released.
This innovation increases the usefulness of Block’s services in the cryptocurrency industry by enabling retailers to convert a percentage of their revenues straight into Bitcoin. The reasoning for this strategic move was recently provided by Jack Dorsey in a letter to investors.
“We believe the world needs an open protocol for money, one that is not owned or controlled by any entity … An open protocol for money helps us serve more people around the world faster,” Dorsey stated.
Not enough Bitcoin ETFs from Hong Kong to withstand temptation to dump US ETFs
The inflows from the Hong Kong ETF launch are not quite as large as the withdrawals from U.S. ETFs, despite the hype surrounding it. Could the price of Bitcoin hit $50,000 once again soon?
The withdrawals from the eleven spot Bitcoin exchange-traded funds (ETFs) headquartered in the United States are more than the inflows from the freshly established spot Bitcoin ETFs in Hong Kong.
Head of research at CoinShares James Butterfill wrote on May 2 X that the Hong Kong ETFs had already seen net inflows of $217 million this week.
According to Dune, the inflows are smaller than the $298 million in net outflows that the 11 U.S. spot Bitcoin (BTC) ETFs produced this week.
The latest Bitcoin climb to fresh all-time highs was largely driven by institutional inflows from ETFs. According to data by CryptoQuant, on the date of February 15, Bitcoin ETFs constituted almost 75% of fresh investments in the largest cryptocurrency globally, as it crossed the $50,000 threshold.
The bulk of withdrawals on May 1 came from Fidelity’s Wise Origin Bitcoin Fund, which sold Bitcoin for more than $191 million. According to Farside statistics, on May 1, the ETF of Grayscale accounted for the second-largest daily outflows of BTC, totaling $167.4 million.
Crypto holders were excited when the first batch of Hong Kong Bitcoin and Ether-based ETFs went live for trading on April 30. But trade activity has not been up to par.
The first-day trading volume of the Hong Kong-based ETFs was just $12.4 million, a small amount in comparison to the $4.6 billion first-day trading volume of the U.S. spot Bitcoin ETFs.
But in light of the size of the Hong Kong market—which is comparable to $1.6 billion in US trading volume—this is a significant number, as noted in the April 30 X article by senior Bloomberg ETF analyst Eric Balchunas:
“You have to understand [that Hong Kong] is 1/168th the size of the U.S.”
James Wo, the founder and CEO of DFG, told Cointelegraph that despite the comparatively low inflows, the launch of the Hong Kong ETFs might create a major precedent for other jurisdictions:
“These ETFs open up Asian markets to crypto exposure, which can likely push prices up in the long term as more countries likely follow the footsteps of Hong Kong as well.”
Could Bitcoin hit $50,000 once again following the launch of the Hong Kong ETF?
For Bitcoin investors, the launch of the first Hong Kong ETFs was akin to a “sell-the-news” moment, since on May 1, the day following the first ETFs’ introduction, BTC dropped below the psychological $60,000 threshold.
According to CoinMarketCap, the last time Bitcoin traded below $60,000 was at the end of February.
At $59,000, which served as both the short-term holder realized price (STH-RP) and the average inflow price of the ETFs, Bitcoin broke through a significant support line.
According to Bitfinex’s director of derivatives Jag Kooner, if Bitcoin falls below the $59,000 threshold, it may once again test the $50,000 barrier. He stated to Cointelegraph:
“While price predictions are not appropriate based on these, the STH-RP is a crucial support level for BTC to hold and on losing it, or the average ETF buyer cost basis, there is a high likelihood that there is a cascade down to low $50,000s.”
TON price soars 10% as Pantera Capital backs TON blockchain
The Open Network (TON) blockchain experiences a 10% increase in price due to Pantera Capital’s support. The potential for widespread cryptocurrency adoption is indicated by TON’s integration with Telegram’s enormous user base and Pantera’s strategic investment.
Leading cryptocurrency venture capital company Pantera Capital has made a recent investment in the blockchain known as The Open Network (TON). TON, which was first created by Telegram, has been rather popular on the Telegram network, with more than 900 million people using it each month. One of the most recent developments is Telegram’s use of Toncoin (TON) tokens for rewards distribution and ad revenue sharing. TON has significantly increased 9.6% since the release.
TON has the ability to reach a far larger audience in the cryptocurrency space, according to Pantera Capital, because of Telegram’s large user base and its recent acceptance for in-platform marketing and Tether (USDT) payments. The company expects TON to continue expanding and gaining traction among Telegram users, highlighting its transaction-cost-effectiveness and scalability.
The diverse investment approach and fund expansion of Pantera Capital
Pantera Capital’s acquisition of discounted Solana (SOL) tokens is consistent with its diverse investing approach, which includes the investment in TON. The company is also launching a new $1.25 billion fund, called Fund V, to invest in a variety of cryptocurrency assets, including as liquid tokens and startup stock Blocks.
With a $1 million minimum investment requirement, Fund V seeks to draw qualified investors. The first closing is set for April 1, 2025. Pantera Capital’s proactive approach in the dynamic cryptocurrency market is demonstrated by its attempts to foster the expansion of promising projects such as TON, which demonstrates the firm’s dedication to diversifying its investment portfolio.
TON price increase when market cap increases
With a market valuation of $17.6 billion, TON is currently the tenth-largest cryptocurrency after seeing a meteoric rise in popularity. Coingecko Toncoin Price Page estimates that TON is now trading at $5.10 per token. This increase highlights TON’s increasing significance in the cryptocurrency space.
Toncoin’s (TON) current price is $5.10, and its 24-hour trading volume is $275.1 million. This indicates a price rise of 9.57% over the previous day. has 3.5 billion tons in circulation.
The network’s potential is further shown by Pantera Capital’s investment in TON, which is driven by the network’s scalability and affordable transaction costs. These elements support TON’s rise in the market rankings by positioning it as a competitive choice for cryptocurrency payments and transactions.
Join FMCPAY 3rd Birthday minigame: Join FMCPAY 3rd Birthday Party to share 1,600,000 FMC in rewards