The Crypto Roundup: 01 December 2023 | CryptoCompare.com

Nasdaq-listed business intelligence company MicroStrategy Inc. (NASDAQ: MSTR) significantly increased the size of its Bitcoin portfolio in November, purchasing an additional 16,130 Bitcoins. The company, which was co-founded by the current Executive Chairman, Michael Saylor, executed this purchase with an investment of about $593.3 million in cash, which means each bitcoin was bought at an average price of $36,785, per the Form 8-K it filed on November 30.

November 2023 has been marked as the most damaging month in the history of the cryptocurrency industry, with a record $363 million lost to theft, scams, and exploits. CertiK, a blockchain security firm, revealed these losses in a report on X (formerly Twitter). 

Republican lawmakers are currently evaluating a series of recommendations from the Treasury Department aimed at enhancing its regulatory powers over the cryptocurrency industry. Rep. Tom Emmer (R-Minn.), a member of the House Financial Services Committee, expressed skepticism about the agency’s approach during the Blockchain Association Policy Summit. 

Top stories in the Crypto Roundup:

• MicroStrategy Increases Bitcoin Holdings with $593 Million Purchase in November
• Record $363 Million Crypto Theft in November 2023, CertiK Reports
• U.S. Lawmakers Scrutinize Treasury Department’s Plans for Crypto Oversight

MicroStrategy Increases Bitcoin Holdings with $593 Million Purchase in November

Nasdaq-listed business intelligence company MicroStrategy Inc. (NASDAQ: MSTR) significantly increased the size of its Bitcoin portfolio in November, purchasing an additional 16,130 Bitcoins. The company, which was co-founded by the current Executive Chairman, Michael Saylor, executed this purchase with an investment of about $593.3 million in cash, which means each bitcoin was bought at an average price of $36,785, per the Form 8-K it filed on November 30.

MicroStrategy’s Bitcoin treasury includes 174,530 tokens, acquired at an average price of about $30,252 each. This latest acquisition in November signifies a marked escalation in MicroStrategy’s strategy of investing in Bitcoin and it was the company’s biggest purchase since it bought 19,452 Bitcoin for just over $1 billion in February 2021.

In addition to its Bitcoin acquisitions, MicroStrategy has taken strategic financial steps to support its investment activities. The company has entered into a new agreement with Cowen and Company, Canaccord Genuity, and BTIG. This agreement aims to offer up to $750 million worth of Class A common stock.

MicroStrategy stock closed yesterday at $498.30, down -$8.80 (-1.74%) on the day. The stock is up 243.61% year-to-date.

Record $363 Million Crypto Theft in November 2023, CertiK Reports

November 2023 has been marked as the most damaging month in the history of the cryptocurrency industry, with a record $363 million lost to theft, scams, and exploits. CertiK, a blockchain security firm, revealed these losses in a report on X (formerly Twitter).

The majority of these losses, amounting to $316.4 million, were due to exploits. Flash loan attacks contributed to $45.5 million in losses, and various exit scams resulted in the loss of $1.1 million. Notable incidents of the month included significant exploits on Poloniex and HTX/Heco Bridge, leading to losses of $131.4 million and $113.3 million, respectively. A single victim also lost $27 million in a phishing attack, while $45 million was due to the KyberSwap attack.

This spike in losses in November surpassed the previous record of $329 million set in September, primarily due to the $200 million Mixin Network attack. By the end of November, the cumulative losses in 2023 from such incidents reached approximately $1.7 billion. This figure is only 54% of the total $3.7 billion lost in 2022, with 2021 also recording losses of around $1.7 billion.

Experts like Ronghui Gu, co-founder of CertiK, warned that standard smart contract audits are insufficient in the face of evolving threats like SIM-swapping and multisignature vulnerabilities. The increasing sophistication of these thefts and scams, according to Christian Seifert from Forta Network and Jerry Peng from 0xScope, is deterring potential users from engaging with the Web3 space, likening these losses to the impact of a bank being robbed, thus eroding trust and interest in the sector.

U.S. Lawmakers Scrutinize Treasury Department’s Plans for Crypto Oversight

Republican lawmakers are currently evaluating a series of recommendations from the Treasury Department aimed at enhancing its regulatory powers over the cryptocurrency industry. Rep. Tom Emmer (R-Minn.), a member of the House Financial Services Committee, expressed skepticism about the agency’s approach during the Blockchain Association Policy Summit. He cautioned against what he perceives as the Treasury’s overreach, likening it to a “savior-like complex.”

Earlier this week, the Treasury Department proposed new measures including additional sanctions tools and expanded authority over dollar-based stablecoins. Deputy Treasury Secretary Wally Adeyemo emphasized the need for overseas dollar-backed stablecoin providers to implement safeguards against their use by bad actors.

During a fireside chat at the Blockchain Association Policy Summit on Wednesday, Adeyemo expressed his growing apprehensions, saying, “I am increasingly concerned about things like dollar-based stablecoins that aren’t based here in the United States, but give people the privilege and the ability to use the dollar outside of our jurisdiction.”

Rep. Emmer, however, challenged the Treasury’s proposals, citing a lack of response to a congressional inquiry about cryptocurrency’s role in financing Hamas. He criticized the Treasury for aiming to extend its surveillance and security apparatus without adequate congressional involvement.

On the other hand, Sen. Cynthia Lummis (R-Wyo.), a member of the Senate Banking Committee, displayed a more balanced stance. Speaking at the same Summit, she expressed interest in examining the Treasury’s suggestions, particularly those related to mixers and tumblers, indicating a potential area for collaboration with the Treasury.

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