The Daily: XRP is back in crypto's top three, Michael Saylor advises Microsoft on adopting bitcoin and more

I hope you had a good weekend, folks. In today's newsletter, XRP becomes the world's third-largest cryptocurrency, Michael Saylor advises Microsoft on adopting bitcoin as a treasury reserve asset, MicroStrategy acquires another $1.5 billion worth of bitcoin and more.

Meanwhile, Bernstein sees Ethereum ETF staking yields as likely to be approved in the U.S. under a crypto-friendly "Trump 2.0" SEC as global Ethereum investment products hit record annual inflows of $2.2 billion.

Let's get started.

XRP is back in crypto's top three

XRP, closely associated with digital asset infrastructure firm Ripple, has surpassed Tether's USDT and Solana's SOL to become the world's third-largest cryptocurrency with a market cap of around $150 billion.

• XRP's price has surged 36% over the last 24 hours to $2.63, gaining 87% over the past week and some 431% in the last month.
• Only bitcoin and ether rank higher, with market caps of $1.9 trillion and $432 billion, respectively, while USDT and SOL currently sit at $134 billion and $105 billion.
• "XRP's recent strength seems to be driven by the news last week that NYDFS is close to approving Ripple's proposed stablecoin RLUSD," Presto analyst Peter Chung told The Block.
• XRP's momentum is also linked to SEC Chair Gary Gensler's announcement of stepping down, which could ease Ripple's legal battles under more crypto-friendly leadership.
• "Gensler stepping down is also a plus as this means that the SEC under a new leadership is likely to settle or withdraw many of the SEC's outstanding lawsuits, including the appeal against Ripple," Chung said.
• "It's difficult to judge how long the rally will last. If the XRP community can leverage the RLUSD to nurture the ecosystem on XRP Ledger and create values, it could. Ripple will certainly be in a better position to do so without the distraction from the SEC lawsuit."
• Market participants are also watching for spot XRP ETF approvals in the U.S., with several asset managers, including 21Shares, Bitwise and WisdomTree, having already filed for such funds.

Michael Saylor advises Microsoft on adopting bitcoin

MicroStrategy co-founder Michael Saylor urged Microsoft CEO Satya Nadella and its board of directors to adopt bitcoin on its balance sheet, calling it the "best asset you can own."

• "Microsoft can't afford to miss the next technology wave, and Bitcoin is that wave," Saylor said in a three-minute clip he shared of a recent presentation to Microsoft. "Bitcoin represents the greatest digital transformation of the 21st century that represents digital capital."
• Saylor claimed Microsoft could boost its stock price by $584 per share and add $4.9 trillion in enterprise value by 2034 by fully embracing bitcoin.
• He argued that Microsoft had surrendered hundreds of billions of dollars of capital over the past five years and that holding bitcoin would reduce shareholder risk compared to stock buybacks or bonds.

MicroStrategy acquires another $1.5 billion worth of bitcoin

MicroStrategy has acquired a further 15,400 BTC for approximately $1.5 billion at an average price of $95,976 between Nov. 25 and Dec. 1.

• The purchase was funded by selling another 3,728,507 MSTR shares as part of its broader $42 billion capital raise plan to acquire more bitcoin over the next three years.
• MicroStrategy now holds 402,100 BTC, worth over $38 billion, bought at an average price of $58,263 per bitcoin at a total cost of around $23.4 billion.
• MicroStrategy's latest announcement is the fourth week in a row following news last Monday that it had acquired a record 55,500 BTC for roughly $5.4 billion and $4.6 billion worth of bitcoin the week before.

Japanese exchange DMM Bitcoin to shut down after $300 million hack

Japanese crypto exchange DMM Bitcoin plans to shut down operations by March 2025 after transferring its customer accounts and custodial assets to SBI VC Trade.

• The exchange suffered a $306 million hack in May, losing approximately 4,503 BTC in the security breach.
• DMM Bitcoin noted it had raised about $365 million via a combination of funding initiatives in June to address losses and procure an equivalent amount of bitcoin
• SBI VC Trade plans to offer spot trading for the 14 cryptocurrencies currently listed on DMM Bitcoin before completing the asset transfer.

BitGo launches dedicated retail platform to buy, sell, trade, custody and stake crypto assets

Crypto infrastructure provider BitGo has launched a dedicated retail platform — providing global access to its regulated digital asset trading, staking, lending, wallet and qualified custody services for the first time.

• BitGo claims to have safeguarded billions in crypto assets for institutions, with its new retail solution designed to offer the cohort the same levels of institutional-grade security, transparency and regulatory compliance, the firm said.
• BitGo, valued at $1.75 billion after a $100 million Series C round in 2023, is known as the custodian of WBTC and Ark Invest/21Shares and Valkyrie (now CoinShares) spot Bitcoin ETFs. It is also helping to facilitate Mt. Gox client repayments.

In the next 24 hours

• U.S. FOMC member Adriana Kugler will speak at 12:35 p.m. ET on Tuesday.

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