The Intersection: Crypto And Wall Street This Week- Sunday, Nov. 29

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.


The digital currency Libra, led by Facebook (FB), is readying to launch as early as January but in a more scaled down version than its already limited plan, the Financial Times' Hannah Murphy reported Friday, citing three people involved in the initiative. In April, The Libra Association said it expected to unveil digital versions of several currencies as well as a digital composite of all its coins, however the group will now just launch a single coin initially backed one-for-one by the dollar. Other currencies and the composite are expected to be unveiled at a later time.


Andrew Left's Citron Research said MicroStrategy (MSTR) is the best way to own bitcoin in the stock market. The firm, in a Tuesday report posted on its website, put a $700 price target on MicroStrategy shares. "Today, we are long bitcoin as we believe there is no better inflation hedge in the market," Citron wrote. The business intelligence company owns more bitcoin than any other publicly traded company, Citron points out. In Q3, MicroStrategy invested $425M to purchase 38,250 bitcoins, which have a current market value of over $700M. Therefore, MicroStrategy is trading at just 2.5 times sales, according to Citron. If bitcoin trades to $50,000, MicroStrategy could be worth $700 per share, it claims.


Crypto exchange Coinbase had 15 black employees depart, quit or be fired, representing about three-quarters of black workers at the 600-person company, the New York Times’ Nathaniel Popper reported Friday. Prior to leaving in late 2018 and early 2018, at least 11 employees informed human resources or their managers about alleged racist or discriminatory treatment. One of the staff who worked in recruiting said she notified her manager several times regarding how he and others excluded her from meetings and conversations, while others claimed the use of racist stereotypes and being passed over for promotions in favor of less experienced white employees. Kim Milosevich, a Coinbase spokeswoman, said the company “does not tolerate racial, gender or any other forms of discrimination. All claims of discrimination are treated very seriously, investigated by both internal and third parties, and the appropriate action is taken.” The company’s retail and professional-focused platforms were also hit by technology issues on Thursday, with users reporting struggles with trading bitcoin, Reuters’ Tom Wilson reported. Coinbase said it had identified the problem and implemented a fix.

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