Day: November 21, 2024

Bitcoin’s march toward $100,000 made further ground on Thursday as investors bet a friendlier U.S. regulatory approach to cryptocurrencies under President-elect Donald Trump will unleash a boom era for the asset class.

Bitcoin prices topped $96,000 for the first time in Asia trade, touching a high just above $96,898.

The cryptocurrency’s price has more than doubled this year and is up about 40% in the two weeks since Trump was voted in as the next U.S. president and a slew of pro-crypto lawmakers were elected to Congress.

“While it’s now firmly into overbought territory, it is being drawn toward the $100k level,” said IG Markets analyst Tony Sycamore.

Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and to accumulate a national stockpile of bitcoin.

More than $4 billion has streamed into U.S. listed bitcoin exchange-traded funds since the election. This week, there was a strong debut for options on BlackRock’s ETF (IBIT.O), opens new tab, with call options – bets on the price going up – more popular than puts.

Crypto-related stocks have been soaring along with the bitcoin price and shares in bitcoin miner MARA Holdings (MARA.O), opens new tab were up nearly 14% overnight, while MicroStrategy (MSTR.O), opens new tab, a loss-making software company that has been buying bitcoin, rose 10% to take its market capitalisation beyond $100 billion.

“Many are wondering if this administration will bring the regulatory clarity the crypto community has been waiting for. It’s likely too soon to say,” said Will Peck, head of digital assets at WisdomTree, a global exchange-traded fund issuer.

“We see all of this excitement as bullish not only for bitcoin or crypto broadly, but the entire blockchain-enabled ecosystem that is growing today.”

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In India, Byju’s is facing insolvency proceedings, with a court-appointed professional working to raise funds to repay creditors.

The founder of edtech giant Byju’s, Byju Raveendran, reportedly attempted to use concealed loan proceeds to secretly repurchase Epic!, a US-based education software company taken over by an American trustee, according to court filings.

Byju Raveendran’s Alleged Attempt to Regain Control

According to Nebraska businessman William R. Hailer, Raveendran has been trying to regain control of his troubled education technology empire amid ongoing legal battles, Bloomberg reported.

Byju’s Struggles in US and India

Byju’s is under court supervision in both India, where its parent company is based, and the US, where some of its most valuable units are located.

Allegations of Loan Manipulation

According to the Bloomberg report, Raveendran allegedly recruited Hailer, a former political consultant, to help buy out US creditors owed more than $1.2 billion under a distressed loan. The proposed plan involved swapping the debt, which was trading at just 0.24 cents on the dollar, for ownership of Epic! However, the effort failed, as per filings with the US Bankruptcy Court in Delaware.

Testimony Against Raveendran

In his court declaration, Hailer accused Raveendran of exploiting him. “Over the last several months, I have been used as a pawn in Byju’s manipulation of the law,” Hailer stated. He is set to testify on behalf of a trustee planning to sell Epic! to raise funds for Byju’s creditors.

Financial Transactions Under Scrutiny

Hailer revealed that Raveendran wired $11.25 million to Rose Lake Inc., a company managed by Hailer, as part of a strategy to demonstrate financial stability to lenders. The funds originated from OCI Ltd., a UK-based logistics firm that had received hundreds of millions in loan proceeds now being pursued by US creditors.

Accusations of Misappropriation

Lenders allege that Raveendran concealed $533 million in loan proceeds intended for repayment. While Raveendran has denied any wrongdoing, claiming his actions were a response to aggressive creditor tactics, lenders have filed lawsuits in both U.S. state and federal courts to reclaim the funds.

Broader Implications

In India, Byju’s is facing insolvency proceedings, with a court-appointed professional working to raise funds to repay creditors. The ongoing legal battles in both countries highlight the precarious position of the edtech giant as it struggles to stabilise its finances and operations.

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Gautam Adani-led Group stocks bled up to 20 per cent during the trading session on Thursday with a number of these high beta counters hitting lower circuits for the day.

Gautam Adani-led Group stocks bled up to 20 per cent during the trading session on Thursday with a number of these high beta counters hitting lower circuits for the day. Amid this sharp selloff, investors of 10-listed Adani Group counters lost more than as much as Rs 2.60 lakh crore at the opening tick.

Adani stocks were tumbling sharply lower on Thursday after US prosecutors indicted billionaire Gautam Adani and seven other senior business executives in connection with an alleged $250 million bribery scheme that they said was concealed from US investors.

The total market capitalization of all 10-listed Adani Group companies tumbled to Rs 11,91,557.79 crore on Thursday, which stood at Rs 14,24,432.35 lakh crore on Tuesday. It means the investors lost about Rs 2.60 lakh crore in the early session.

Adani Enterprises Ltd, the flagship company of the Adani Group, was the biggest loser. It hit the third daily circuit of 20 per cent to Rs 2256.2 on Thursday, from its previous close at Rs 2,820.2 on Tuesday. The total marketcap of the largest Adani Group firm was down Rs 61,096.85 crore to Rs 2,60,406.26 for the day.

Adani Ports & Special Economic Zone Ltd, another Nifty50 constituent from Adani Group, tumbled 20 per cent to Rs 1,031.25 for the day. Its total market capitalization was down by 55,688 crore for the day. Adani Green Energy Ltd was the next biggest loser in terms of mcap wipe out. The stock tumbled more than 19 per cent to erase Rs 42,887.68 crore from its valuations.

Adani Power Ltd, which was down 18 per cent for the day, lost nearly Rs 36,000 crore of mcap. Similarly, shares of Adani Energy Solutions, previously known as Adani Transmission Ltd, was locked in the lower circuit limit of 20 per cent, giving up Rs 21,000 crore from its valuation. Adani Wilmar Ltd was down 10 per cent, with a lost of 4,289 crore loss in the mcap.

Acquired Entities, including Ambuja Cements Ltd and ACC Ltd were down 18 per cent 15 per cent respectively. The former lost Rs 20,296 crore of marketcap, while the latter saw an erosion of 5,700 crore mcap on Thursday. The smallest Adani Group counter, New Delhi Television Ltd (NDTV) dropped over 14 per cent and its mcap was down by Rs 157 crore for the day.

The United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani, said Adani Green Energy in its statement.

“The United States Department of Justice have also included our Board member, Vneet Jaain, in such a criminal indictment. In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings,” it added.

In other news, Units of Adani Group scrapped a $600 million dollar bond on Thursday after US prosecutors charged Gautam Adani, the group founder with participating in an alleged bribe plot, reported Bloomberg. The group’s existing US-currency notes plunged in Asian trading, it said.

Infact, Rajeev Jain-led GQG Partners, which has been a strategic investor in six Adani Group companies, is monitoring the charges against Gautam Adani and Adani group executives in the bribery case, Reuters quoting sources. The Group may ‘evaluate’ its investments in the Indian conglomerate. The Australia listed GQG Partners’ shares tanked 18 per cent on Thursday.

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