Crypto Currents: Exchange Gemini, blockchain lender Figure hike IPO valuations

The line between crypto and traditional equity markets continues to blur as crypto exchange Gemini boosts its IPO valuation, signaling strong investor demand. Meanwhile, the trend of public companies adding bitcoin to their balance sheets is accelerating, with companies like GameStop already seeing the benefits on their bottom line. These developments offer investors new avenues for exposure to the digital asset space, both through direct listings and via established companies adopting crypto strategies. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

GEMINI AND FIGURE BOOST IPO VALUATIONS: Crypto exchange Gemini (GEMI) has raised the proposed price range for its upcoming IPO, now targeting a valuation of approximately $3.1B. In an updated SEC filing, the company co-founded by Cameron and Tyler Winklevoss increased its expected share price to $24-$26 from a range of $17-$19. The move follows news that Nasdaq (NDAQ) will make a $50M private placement in the company upon its public debut, which is expected Friday under the ticker “GEMI”. Similarly, blockchain lending firm Figure Technologies (FIGR) also increased its IPO price range, now aiming for a valuation of up to $4.7B.

CORPORATE TREASURIES GAIN MOMENTUM: A growing number of publicly traded companies are integrating bitcoin into their financial strategies, with tangible results. GameStop (GME) reported positive earnings results on Tuesday, aided by its recent purchase of 4,710 bitcoin. The company’s bitcoin holdings were valued at $528.6M at the end of the quarter. Asset Entities (ASST) shareholders have approved a merger with Vivek Ramaswamy’s Strive Enterprises to form a bitcoin-focused digital asset treasury company. The new entity will be named Strive, Inc. but will continue to trade under the ‘ASST’ ticker. Japanese bitcoin treasury firm Metaplanet has secured a $30M investment from KindlyMD’s (NAKA) Nakamoto subsidiary to support its bitcoin accumulation strategy. The investment is part of Metaplanet’s larger international share offering to fund its aggressive purchasing plan.

ANALYSTS EYE CRYPTO-EQUITIES: Brokerage firm Clear Street initiated coverage of Bakkt (BKKT) with a buy rating and a $14 price target, suggesting a 44% upside from its Tuesday close. Analysts noted that Bakkt has streamlined its business by selling non-core units to focus on becoming a “blockchain-native payments platform”. The company is now centered on institutional crypto services and a stablecoin-based remittance platform, positioning it to capture a share of the $190T cross-border payments market.

MACRO OUTLOOK: Caution may be warranted for risk assets after the U.S. Bureau of Labor Statistics revealed the economy created nearly 1M fewer jobs than reported in the year ending in March. The significant downward revision calls into question the market’s previous optimism about the labor market and could undermine risk-on positions. While some traders see this as a sign the Fed may pursue aggressive rate cuts, upcoming inflation data could temper those expectations.

PRICE ACTION: As of time of writing, bitcoin (BTC-USD) was trading at $113,862.15, while ether (ETH-USD) was trading at $4,400.67, according to price data provided by CoinDesk.