Here’s What You Missed in Crypto This Week

As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week’s top stories highlighting the intersection of these old guard and new school areas of finance with this recap compiled by The Fly.

CRYPTO HOLDERS CAN SHIFT TO FAIR VALUE ACCOUNTING: The Financial Accounting Standards Board voted unanimously Wednesday in favor of new rules that are expected to be published by year end that will allow cryptocurrency companies and other businesses with significant crypto holdings to measure the value of their bitcoin and other holdings at fair value, Bloomberg’s Nicola White reported. MicroStrategy (MSTR), a significant holder of bitcoin, has previously voiced support for fair value accounting for certain crypto assets including bitcoin. The rules will go into effect as soon as 2025, but companies will have the option to apply them early, the FASB stated. The rulebook for U.S. accounting does not specifically address how companies like MicroStrategy, Tesla (TSLA) or crypto exchange Coinbase (COIN) need to recognize and measure the digital currencies they own, though companies currently default to an American Institute of CPAs practice guide, Bloomberg noted. (read more)

BITCOIN DEPOT INITIATED WITH OUTPERFORM: Noble Capital initiated coverage of Bitcoin Depot (BTM) on Thursday with an Outperform rating and $9 price target. The “largest Bitcoin ATM operator in the U.S,” with over 6000 locations, is also notably the first publicly traded Bitcoin ATM operator, the analyst said. The firm contended that the shares offer investors “an opportunity to experience cryptocurrency industry growth, while mitigating many risks associated with the industry” and points to the company’s positive cash flow growth outlook for its “favorable rating.” (read more)

TERAWULF INITIATED WITH BUY: Compass Point initiated coverage of TeraWulf (WULF) on Thursday with a Buy rating and $3 price target. The firm believes TeraWulf’s low-cost Lake Mariner operations and especially its Nautilus JV, position it well ahead of the 2024 BTC halving, the analyst said. Additionally, the firm thinks TeraWulf’s low/zero-carbon focus reduces regulatory risk and could eventually allow it to trade at a premium given investors’ growing ESG focus and sees the company’s debt load as “manageable” after a voluntary out-of-court restructuring in early 2023, the analyst added. (read more)

BINANCE EXECUTIVES DEPART: Several Binance executives have left the company recently, including management overseeing its Russian business and its connections to the traditional financial system, the Wall Street Journal’s Patricia Kowsmann, Angus Berwick and Caitlin Ostroff reported Wednesday. Recent exits include regional head Gleb Kostarev, Russia chief Vladimir Smerkis and global fiat business leader Helen Hai, which followed the departures of the company’s general counsel, chief strategy officer and head of investigations. “Some of our team members are growing into bigger roles, some outside of Binance. We are supportive of everyone. We are one community,” said founder Changpeng Zhao. (read more)

CRYPTO STOCK PLAYS: Publicly traded companies in the space include Bit Digital (BTBT), Coinbase, Core Scientific (CORZ), Greenidge Generation (GREE), Marathon Digital (MARA), MicroStrategy, Riot Platforms (RIOT), Stronghold Digital Mining (SDIG) and TeraWulf.

PRICE ACTION: As of time of writing, bitcoin rose roughly 1% this week at $25,918 in U.S. dollars, according to CoinDesk.