GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- BitGo Targets Retail Clients With New Crypto Platform

- MicroStrategy Now Holds 402,100 BTC After Latest $1.5B Purchase

- WisdomTree Submits S-1 for Spot XRP ETF

- CZ Open to Trump Pardon, Not Binance CEO Role

- Metaplanet Offers Bitcoin Rewards to Shareholders

- MARA Plans $700M Note Offering to Buy Bitcoin

BitGo Expands Into Retail Market, Launches Global Trading Platform for Digital Assets

After over a decade of catering exclusively to institutional clients, BitGo is venturing into the retail market with a global digital asset trading platform. The platform offers trading, staking, and wallet services, along with secure custody options through cold and self-storage. This marks a strategic shift for BitGo, a firm known for serving 1,500 clients across 50 countries, including companies like Nike and over 150 crypto exchanges. BitGo's move addresses gaps in retail crypto markets, such as unreliable custody solutions and concerns about exchange security. Aiming to attract the growing crypto user base, projected to exceed one billion by the end of 2024, BitGo seeks to enhance trust and accessibility for retail investors.

The company’s new platform complements its existing institutional services, such as custody solutions for Bitcoin ETFs in the U.S. and partnerships with financial institutions for crypto trading and off-exchange settlement. BitGo has not yet disclosed the specific regions and currencies supported by its retail offerings. Valued at $1.75 billion as of August 2023, BitGo has secured $100 million in Series C funding from major investors like Goldman Sachs and Galaxy Digital Ventures. Recently, the company expanded into stablecoins with plans to launch a U.S. dollar-pegged stablecoin. Additionally, BitGo is creating a regulated platform to manage native token distributions for Web3 protocols. These developments come amidst heightened competition in digital asset services, signaling BitGo's ambition to capture both institutional and retail market opportunities.

MicroStrategy Acquires 15,400 BTC for $1.5 Billion, Boosting Total Bitcoin Holdings to 402,100

MicroStrategy has expanded its bitcoin holdings by acquiring an additional 15,400 BTC for approximately $1.5 billion, at an average price of $95,976 per bitcoin, between November 25 and December 1. This brings the company’s total BTC reserves to 402,100, valued at over $38 billion. The cumulative acquisition cost stands at $23.4 billion, with an average purchase price of $58,263 per bitcoin, including fees. The purchase was funded by selling 3,728,507 company shares, raising the same $1.5 billion. MicroStrategy still has $11.3 billion worth of shares available for sale as part of a planned $21 billion equity offering and $21 billion in fixed-income securities, aiming for a $42 billion capital raise over three years to fund further bitcoin acquisitions.

The latest announcement follows a streak of significant BTC purchases, including a record 55,500 BTC for $5.4 billion last week. MicroStrategy uses a proprietary "Bitcoin Yield" metric, which reflects a 63.3% year-to-date increase in holdings while managing share dilution.Executive Chairman Michael Saylor, a staunch bitcoin advocate, continues to push for BTC adoption. Recently, he advised Microsoft’s CEO and board to consider bitcoin as a treasury asset, underscoring his belief in its long-term value. The company's strategy prioritizes leveraging bitcoin acquisitions to maximize shareholder returns amidst growing institutional interest in cryptocurrency.

WisdomTree Files S-1 with SEC for Spot XRP ETF, Becoming Fourth US Firm to Make Such a Move

WisdomTree, a prominent US-based ETF provider, has filed a Form S-1 with the Securities and Exchange Commission (SEC) to launch a spot XRP exchange-traded fund (ETF). This makes WisdomTree the fourth US firm to propose a spot XRP ETF, joining Bitwise, Canary Capital, and 21Shares. Named the WisdomTree XRP Fund, the ETF aims to provide investors with exposure to XRP's price by offering shares listed on the Cboe BZX Exchange. Pending SEC approval, the fund will use a cash-create or in-kind creation and redemption model for shares. Coinbase Global, a key player in the cryptocurrency space, will serve as both the fund’s XRP custodian and prime execution agent. WisdomTree’s previous experience with spot ETFs includes its WisdomTree Bitcoin Fund (BTCW), which debuted alongside other spot Bitcoin ETFs in January.

The company’s reliance on Coinbase extends to its XRP ETF filing, reflecting Coinbase’s role in supporting the US crypto ETF ecosystem. This filing follows the SEC’s partial resolution of its legal battle with Ripple, which saw XRP regain its status as the third-largest cryptocurrency after a four-year hiatus. Competing filings from Bitwise, Canary Capital, and 21Shares suggest growing interest in spot XRP products, signaling increasing institutional interest in the altcoin. The approval of spot XRP ETFs could mark a significant milestone for the cryptocurrency industry, paving the way for broader adoption and enhanced investor confidence.

Former Binance CEO CZ Expresses No Interest in Returning but Would Welcome a Trump Pardon

Changpeng "CZ" Zhao, former CEO of Binance, stated on Dec. 2 that he has no intention of resuming his role at Binance but would welcome a pardon from President-elect Donald Trump. CZ's remarks were in response to a suggestion from Telos Foundation's John Lilic, who advocated for a pardon to enable CZ to contribute further to the crypto industry's growth. CZ clarified his position on X, saying, “No wish to be CEO again. But definitely wouldn’t mind a pardon.” His response garnered significant support online, with users rallying around the hashtag "Free CZ" and proposing he take on a governmental role to drive mass crypto adoption. Despite his legal issues, CZ dismissed claims of a lifetime ban from managing crypto exchanges, asserting that such restrictions were not part of his plea deal.

Following a prison sentence for facilitating transactions for sanctioned nations like Iran and Cuba, CZ indicated a preference for mentoring young crypto entrepreneurs instead of returning to Binance's leadership. In 2023, CZ pleaded guilty to charges linked to Binance's operations, including violations of U.S. sanctions and money laundering. The charges led to a four-month prison sentence and questions about his future involvement in the crypto industry. Supporters argue CZ remains a key figure in crypto innovation, regardless of his formal role in Binance or elsewhere.

Japan’s Metaplanet to Reward Shareholders with Bitcoin via Lottery System in Collaboration with SBI VC Trade

Tokyo-listed investment firm Metaplanet has launched a shareholder benefit program that rewards investors with Bitcoin through a lottery system. The initiative, announced on Dec. 2, is part of a collaboration with SBI VC Trade, a subsidiary of SBI Holdings, aiming to enhance shareholder value and promote Bitcoin adoption. Eligible shareholders holding at least 100 shares as of Dec. 31, 2024, can participate in the program. Additionally, new account holders with SBI VC Trade between Nov. 18 and March 31, 2025, are also eligible. Participants must register via a dedicated website by March 31, 2025.

Metaplanet has allocated 30 million yen ($199,500) in Bitcoin for distribution to 2,350 shareholders. Prizes include 50 allocations of 100,000 yen ($664) worth of Bitcoin, 100 prizes of 30,000 yen ($200), and 2,200 prizes of 10,000 yen ($66.5). This initiative aligns with Metaplanet's commitment to "leveraging strategic partnerships" and underscores its strategy to drive Bitcoin adoption and shareholder engagement. The announcement fueled a 4.58% increase in Metaplanet’s shares, which reached $16. The move follows Metaplanet's plans to raise $62 million via stock acquisition rights to EVO Fund, with proceeds designated for expanding its Bitcoin treasury holdings.

MARA Proposes $700 Million Convertible Senior Note Offering to Repurchase Existing Notes and Acquire More Bitcoin

Bitcoin miner MARA Holdings has announced a proposed $700 million private offering of zero-coupon convertible senior notes, aiming to repurchase a portion of its existing notes and acquire additional Bitcoin. The unsecured notes, due 2031, will be available to qualified institutional investors, with an option for an additional $105 million issuance. MARA plans to allocate $50 million from the proceeds to repurchase existing convertible notes due 2026, with the remaining funds directed toward Bitcoin purchases and corporate purposes. The notes can be converted into cash, common stock, or a mix of both at MARA's discretion.

In November, MARA mined 907 BTC, representing a 26% month-over-month increase and accounting for 6.6% of global miner rewards. Additionally, the firm acquired 6,474 BTC, boosting its total Bitcoin holdings to 34,959 BTC (~$3.3 billion), the highest among public Bitcoin miners. MARA’s chairman and CEO Fred Thiel highlighted November as a record-breaking month, attributing the surge in production to enhanced operational efficiency and the deployment of additional miners. This announcement follows a similar convertible note offering in November, which enabled MARA to expand its Bitcoin reserves.

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