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Binance has ‘a lot of dry powder’ for crypto acquisitions: CEO

Binance has appointed co-founder Yi He as Head of Binance Labs to spearhead company’s investments, including an aggressive approach towards getting acquisitions over the line. But Binance will only acquire or give money to struggling crypto companies that have good products and are well-managed. To that effect, Binance has ‘more dry powder’ than any of…

  • Binance has appointed co-founder Yi He as Head of Binance Labs to spearhead company’s investments, including an aggressive approach towards getting acquisitions over the line.
  • But Binance will only acquire or give money to struggling crypto companies that have good products and are well-managed.
  • To that effect, Binance has ‘more dry powder’ than any of the competitors in the crypto industry.

Binance CEO Changpeng ‘CZ’ Zhao says his crypto company is well capitalised and ready to go on an acquisition spree if it helps the market, confirming to Yahoo Finance Live in a Wednesday interview that Binance has “a lot of dry powder” to that end.

CZ also commented on the broader crypto regulation landscape, Binance.US’ delisting of the Amp (AMP) token and recent hacks – his remarks coming after this week’s exploits on Nomad bridge and Layer blockchain Solana.

Binance is eyeing acquisitions

With several crypto companies coming under distress in the past few months amid the crypto winter, one of the firms to take an aggressive approach towards acquisitions has been FTX – the crypto firm founded by Sam Bankman-Fried.

Bankman-Fried’s FTX and Alameda have put a combined $1 billion+ into deals, including with potential acquisition for crypto lender BlockFi. The crypto billionaire’s empire even has a proposal to take up assets of embattled Voyager Digital.

So, does Changpeng Zhao’s Binance have a similar outlook even as the crypto industry navigates the bear market? 

According to the Binance chief, that’s exactly what they are ready to do. He told Yahoo Finance Live:

We have a lot of dry powder…we have more dry powder than almost anyone else we know in the space. So we do want to use that to do acquisitions.”

So, Binance has a lot of cash or other such other highly liquid funds sources to put into investments as the market pushes through the ‘winter’.

However, CZ was quick to mention that most of the troubled crypto companies in the industry today “are not well-managed”, noting that this is why Binance is unlikely to seek to acquire them. But if these are “well-managed, with good products, but just short of cash,” then Binance will be ready to acquire them.

To the effect that his firm is working on acquisitions in the industry, Zhao pointed to the appointment of Binance co-founder Yi He at Binance Labs, the company’s venture capital arm currently managing over $7.5 billion in assets.

Yi will help Binance aggressively pursue several investments in the short term, Zhao explained.

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Bitcoin

Former Coinbase Business Developer: ‘There Wasn’t a Long-Term Case for Bitcoin Payments’

Nick Tomaino, a former business developer and marketing lead at Coinbase, explained how the idea of bitcoin for payments gradually lost its relevance in the market. Tomaino detailed that Coinbase rode this premise back in 2014 to raise $125 million in two funding rounds, but it was quickly clear that there was not a case [……
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Bitcoin

Japanese Corporation Metaplanet Acquires More Bitcoin, Stock Price Soars

Metaplanet, a publicly traded corporation on the Tokyo Stock Exchange, has announced an investment of 23.351 bitcoins, with an average purchase price of 10,706,180 yen per BTC, totaling 250 million yen ($1.6 million). The company now holds 141.0727 bitcoins, with an average purchase price of 10,278,391 yen per BTC…
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Bitcoin

BTC slips amid poor debut for Hong Kong spot ETFs

Bitcoin fell to under $62,000 after spiking past $64,700 earlier as Hong Kong spot Bitcoin and Ethereum ETFs began trading. Data showed trading volumes hit just over $11 million, against expectations of over $3oo million. Bitcoin price fell below $62,000 again amid market reaction to less than encouraging numbers from the first day of trading…


  • Bitcoin fell to under $62,000 after spiking past $64,700 earlier as Hong Kong spot Bitcoin and Ethereum ETFs began trading.
  • Data showed trading volumes hit just over $11 million, against expectations of over $3oo million.

Bitcoin price fell below $62,000 again amid market reaction to less than encouraging numbers from the first day of trading for much hyped spot Bitcoin and Ethereum ETFs in Hong Kong.

BTC was down about 1.4% at the time of writing, having touched lows of $61,587 across major crypto exchanges.

The benchmark cryptocurrency, which has struggled to reclaim key levels since its recent halving event, was seeing a 24-hour trading volume of $28.4 billion.

Bitcoin price and Hong Kong spot ETFs debut

Earlier, Bitcoin price surged to above $64,000 as the six spot Bitcoin and spot Ethereum ETFs went live in Hong Kong.

The flagship cryptocurrency rose to over $64,727 on US-based crypto exchange Coinbase. BTC also soared after reports Hong Kong approved the listing of the ETFs.

NEW: 🇭🇰 Opening ceremony of Hong Kong spot #Bitcoin ETFs 👏 pic.twitter.com/ux1eb5PqRn

— Bitcoin Magazine (@BitcoinMagazine) April 30, 2024

However, as data streamed in showing disappointing trading volumes and inflows, Bitcoin price took a hit. According to details of the six ETFs’s debut day, total trading volume reached just $11 million, not impressive given projections were much higher at over $300 million.

Bitcoin ETFs saw about $8.5 million while Ethereum ETFs recorded just $2.5 million on the first day. Ethereum price fell to $3,040.

Notably, the figures from Hong Kong are way lower compared to those recorded amid the enthusiasm that greeted the launch of spot Bitcoin ETFs in the US in January. On their debut, the US spot BTC ETFs raked in over $4.6 billion in trading volume.

The start to trading for the ETFs has not helped BTC price and BTC could face a slide under the $60k level if sentiment flips negative. On the upside, resistance at $65k remains critical and a breakout could see the bellwether digital asset soar towards its recent peak.


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