Crypto Currents: Inflation data moves markets as Figure prices IPO

Markets are weighing hotter-than-expected U.S. inflation data against a backdrop of major corporate maneuvers, including a standout IPO from Figure Technologies and a reported $1B raise by the Avalanche Foundation. 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.

INFLATION DATA COOLS RATE CUT BETS: New data from the Bureau of Labor Statistics shows the U.S. consumer price index rose 0.4% in August, bringing the 12-month inflation rate to 2.9%, pulling away from the Federal Reserve’s 2% target. Following the report, the odds of a 50-basis-point Fed rate cut next week dropped from 12% to 9%, according to the CME FedWatch Tool. Despite the data, bitcoin held steady near $114,000, supported by spot bitcoin ETF inflows that hit an eight-week high of $757.1M on Wednesday, data from SoSoValue shows.

FIGURE PRICES IPO ABOVE RANGE: Blockchain lending firm Figure Technologies (FIGR) priced its initial public offering at $25 per share, above its deal range of $20 to $22 per share, to raise approximately $787.5M, according to a company announcement. The deal, which values the company at roughly $5.3B, is set to begin trading on the Nasdaq Thursday with Goldman Sachs, Jefferies, and BofA acting as joint lead bookrunners.

AVALANCHE FOUNDATION EYES $1B RAISE: The Financial Times reports that the Avalanche Foundation is in discussions to raise $1B for digital asset treasury and accumulation projects. The raise reportedly involves two deals of up to $500M each, with one led by Hivemind Capital and the other involving Dragonfly Capital, to purchase avalanche (AVAX-USD) tokens at a discount.

CORPORATE CRYPTO MOVES: BitMine Immersion Technologies (BMNR) continued its accumulation of ether, purchasing another $200M worth of the token to bring its total holdings to over 2.1M ETH, valued at more than $9.2B, according to on-chain data reviewed by Lookonchain, in a post made to X.. In the U.K., crypto exchange Coinbase (COIN) is encouraging users to sign a public petition calling on the government to create a pro-innovation strategy for blockchain and stablecoins, Cointelegraph reports.

ZODIA AND SBI END JAPAN VENTURE: Standard Chartered-backed Zodia Custody and Japanese financial giant SBI Holdings have mutually agreed to dissolve their joint crypto custody venture in Japan, both firms told Bloomberg. Zodia Custody CEO Julian Sawyer called the move a “strategic alignment” as both companies focus on other priorities.

PRICE ACTION: As of time of writing, bitcoin (BTC-USD) was trading at $114,683.77, while ether (ETH-USD) was trading at $4,429.82, according to price data from CoinDesk.