One Bitcoin is equal to a down payment! Bitcoin breaks through 64,000, these two companies make a fortune

On April 14, Bitcoin broke through the $62,000, $63,000, and $64,000 barriers, reaching a record high of $64,200. As of press time, the price of Bitcoin was $64,119, up more than 5% on the day.

64,000 US dollars is approximately 420,000 RMB, which can be used as a down payment for a house in many cities.

The surge in bitcoin prices may be related to news that cryptocurrency exchange Coinbase is about to go public, whose valuation has soared along with bitcoin and ethereum over the past year.

Nasdaq set the reference price for its listing at $250 per share, valuing the cryptocurrency exchange at about $65.3 billion.

Bitcoin reaches $64,000, and over 140,000 people are liquidated

From yesterday (13th) to today, the cryptocurrency market has been boiling again. The price of Bitcoin has broken through the 64,000 US dollar mark for the first time, setting a new historical high, with an increase of more than 5% in 24 hours; as of press time, Ethereum has also broken through 2,300 US dollars per coin, setting a new historical high, with a 24-hour increase of more than 9%.

The sharp fluctuations in cryptocurrency prices have also led to a sharp increase in the amount of liquidation. According to data from Bitcoin Home, in the past 24 hours, a total of 146,000 cryptocurrency positions were liquidated, with a total amount of up to US$980 million, or about RMB 6.4 billion.

In the view of industry insiders, the short-term rise in Bitcoin prices is undoubtedly related to the upcoming listing of the first cryptocurrency platform on the US stock market. On the news front, Coinbase, the largest cryptocurrency trading platform in the United States, will be listed on the Nasdaq on April 14 local time, with the stock code "CON".

As the world's largest digital currency exchange, Coinbase's cryptocurrency trading volume was $193 billion as of December 31, 2020, up 141.7% from 2019, and the cumulative cryptocurrency trading volume on its platform exceeded $456 billion. Coinbase's platform assets and its performance have continued to soar, from $7 billion in 2018 and $17 billion in 2019 to $90 billion in 2020, with a compound annual growth rate of 258.57%, accounting for 11.1% of the total market share. On April 6, Coinbase chose to announce its financial data for the first quarter of 2021 before its listing. Among them, the total revenue in the first quarter was approximately $1.8 billion, a year-on-year increase of more than 844%.

Different from the common IPO model in the market, Coinbase's listing on the US stock market this time adopts the "direct listing" (DPO) model, that is, the company does not raise capital from the outside, but the company's employees and investors convert their ownership into stocks, which are then listed on the stock exchange. Once the stocks are listed, the public can buy shares, and existing investors can cash out at any time, and there is no lock-up period.

In terms of valuation, Coinbase was previously estimated by the market to be worth more than $100 billion. Based on the reference price of $250 given by Nasdaq for Coinbase's direct listing, the company's valuation is approximately $65.3 billion on a fully diluted basis.

Many industry insiders believe that the Coinbase listing will provide more official recognition for the industry. However, just as the market was encouraged, some voices of "pouring cold water" also came.

According to media reports, Jesse Powell, CEO of Kraken, the world's fourth largest digital currency exchange, recently warned that a crackdown on cryptocurrencies may be imminent: "Governments may begin to restrict the use of Bitcoin and other cryptocurrencies, and regulatory uncertainty surrounding encryption technology will not disappear soon."

Tesla and Meitu make big profits

The cryptocurrency market is booming, and more and more companies are entering the market. Some companies have made more money from "cryptocurrency speculation" than from their main business.

Earlier on February 8, Tesla submitted documents to the U.S. Securities and Exchange Commission showing that the company purchased $1.5 billion worth of Bitcoin. It is estimated that the cost of Tesla's purchase of Bitcoin is less than $35,000. As of now, Tesla's floating profit exceeds 80%, and the floating profit amount exceeds $1.2 billion (about 7.9 billion yuan). Last year, Tesla's net profit was $721 million. This means that the money Tesla earned from "speculating on coins" is 66% higher than the net profit from car manufacturing in 2020.

Meitu (01357.HK), which is famous for its Meitu XiuXiu software, is also a loyal fan of Bitcoin. On the evening of April 8, Meitu announced that its wholly-owned subsidiary Meitu Hong Kong further purchased 175.67798279 units of Bitcoin for a total consideration of approximately US$10 million. As of the date of the announcement, the group has accumulated a net purchase of approximately US$100 million (approximately RMB 655 million) worth of cryptocurrencies. This is the third time that Meitu has invested in cryptocurrencies since March this year.

According to estimates, Meitu spent a total of US$49.5 million to purchase 940,885 bitcoins, with a cost of approximately US$52,600 per bitcoin. The floating profit ratio was 20%, and the floating profit amount was US$9.97 million (approximately RMB 65.28 million).

In addition, Meitu spent a total of US$50.5 million to purchase 31,000 Ethereum coins, at a cost of about US$1,629 per coin, with a floating profit ratio of 36.46% and a floating profit amount of US$18.41 million (about RMB 121 million). This means that Meitu's investment in Bitcoin and Ethereum has made a floating profit of RMB 186 million, which is three times Meitu's net profit of RMB 60.9 million in 2020.

After Tesla announced an investment of $1.5 billion to buy Bitcoin, Michael Novogratz, a well-known American hedge fund manager and former chief investment officer of Citadel Investments, said that he expects the price of Bitcoin to more than double to $100,000 by the end of this year.

In addition, well-known US investment banks are also investing heavily in Bitcoin's market infrastructure and providing services related to Bitcoin. Nine applications for establishing Bitcoin-based ETFs have been submitted to the SEC in the US market, providing more abundant deposit channels.

Investors need to note that cryptocurrencies such as Bitcoin are speculative assets that have neither the credibility of national sovereignty nor the status of legal tender, and their application prospects are extremely uncertain.