Circle and eToro are in mandatory quiet periods regarding potential IPOs. Bitcoin miners are rapidly selling their holdings amid price declines. Semler Scientific is leveraging Coinbase for a loan to settle a DOJ fine while planning a significant securities offering. Coinbase faces a lawsuit from Oregon regulators over alleged securities violations.
Key Updates from Public Keys in the Crypto Sector
This week’s Public Keys summarises significant developments in publicly traded cryptocurrency companies, focusing on Circle, eToro, Bitcoin mining firms, and Semler Scientific.
Quiet Periods for Circle and eToro
Circle, the issuer of USDC stablecoin, has entered a mandatory quiet period following the submission of its S-1 registration statement. This signals potential future plans for an IPO, contradicting reports suggesting other tech IPOs may be delayed due to ongoing trade tensions. Similarly, trading platform eToro has confirmed its own quiet period, preventing them from discussing IPO intentions until an official withdrawal from the SEC occurs.
Increased Bitcoin Liquidation by Miners
Bitcoin miners are selling off their holdings at unprecedented rates, exacerbated by the cryptocurrency’s price dropping below $80,000. According to CryptoQuant, miners sold 15,000 BTC on April 7 alone, totalling around $1.12 billion. Increased liquidation of reserves indicates significant stress within the mining sector, reminiscent of the $200 million in sales seen in June 2024 during lower price periods.
Semler Scientific Pursues Settlement with DOJ
Semler Scientific, listed on Nasdaq as SMLR, has secured a loan from Coinbase Credit to settle an expected enforcement action with the DOJ related to its product QuantaFlo. The company intends to utilise funds from a proposed $500 million security offering to buy Bitcoin, which will also serve as part of the collateral for the loan. This move places Semler in a complex financial position given the ongoing legal scrutiny.
Coinbase Faces Regulatory Challenges
Coinbase is again in the spotlight as Oregon regulators allege violations of state securities laws. The complaint claims Coinbase promoted cryptocurrency sales as unregistered securities, leading to significant losses for Oregon investors. The company’s legal head, Paul Grewal, expressed frustration, pointing out the recent dismissal of a similar SEC case, arguing that the regulatory climate should be shifting.
