Key cryptocurrency prices stabilized after declines of 15% for bitcoin and 18% for ether over the weekend, while Crown received a private equity offer to help it buy out James Packer.
- Major cryptocurrencies fell sharply over the weekend, with bitcoin falling as low as US $ 51,707.50
- Crown Receives $ 3 Billion Unsolicited Financing Proposal From Oaktree To Acquire James Packer
- ASX was higher at the start of trade after gains on Wall Street at the end of last week
After hitting a record high of US $ 64,869.77 on April 14, bitcoin hit a low of $ 51,707.50 yesterday before rebounding rapidly to around US $ 56,270 at 9:55 am AEST.
Other major cryptocurrencies made similar moves, with Ether dropping below $ 2,000 before cutting losses to $ 2,237.
Dogecoin has weathered the weekend trend by increasing over the past day, although it is also off its highs set last week.
The sale came after a frenzy of interest in Coinbase listing on the Nasdaq last week.
Coinbase hit highs of $ 112 billion before closing at $ 86 billion after its listing on Wednesday.
It ended the week valued at $ 68 billion.
The hype surrounding its listing had seen most of the major cryptocurrencies hit record prices over the past week, leading many to conclude that the selloff was “inevitable.”
“The markets were too excited about the direct listing of $ Coin,” tweeted Michael Novogratz, cryptocurrency investor and CEO of Galaxy Digital.
“The base blew up, coins like $ BSV, $ XRP and $ DOGE were pumped out. All were signs that the market was going too one way.
“We will be fine in the medium term as institutions coming into space.”
Other players in the crypto space also cited “euphoria” for the extreme price hikes last week and their reversal this weekend.
“The crypto world is waking up with a bit of a headache today,” Antoni Trenchev, co-founder of crypto lender Nexo, told Bloomberg.
“The 100% Dogecoin rally on Friday was a ‘rush party’, following the bitcoin record and Coinbase listing earlier in the week.
Crown reveals plans to buy Packer from Oaktree
The big news in the Australian stock market is a proposal by private equity firm Oaktree to fund Crown Resorts to buy out its largest shareholder, James Packer.
Crown announced to the market this morning that it has received an unsolicited, non-binding proposal from funds managed and advised by Oaktree Capital Management to provide funding of up to $ 3 billion to Crown in a bid to repurchase some or all actions currently. owned by Mr. Packer’s private company, Consolidated Press Holdings Limited (CPH).
CPH currently owns approximately 37% of Crown.
However, any selective buyback of Crown shares held by CPH would be subject to the approval of the other shareholders of the casino operator.
The CPH would not be allowed to vote for.
Crown said its board has yet to form an opinion on the merits of Oaktree’s proposal.
Crown is also currently considering an $ 8 billion takeover bid for private equity firm Blackstone.
Crown shares rose 0.7 percent to $ 12, slightly higher than the offering price of $ 11.85 per Blackstone share.
ASX opens higher
While the cryptocurrency markets were volatile, this did not trickle down to stocks.
The Australian stock market followed a positive lead from Wall Street on Friday, with a modest 0.2% gain for the ASX 200 to 7,075 points.
The larger All Ordinaries increased by a similar amount to 7,344 points, a new record.
Consumer stocks led the gains, with auto retailer Eagers Automotive (+ 5.3%) and Super Retail Group (+ 3.9%) two of the most notable.
Energy companies were the biggest drag in the market, with Whitehaven Coal down 2.5% and Beach Energy down 2.2%.
The Australian dollar was worth 77.2 US cents.
Spot gold was selling for US $ 1,779.21 an ounce.
Brent crude oil hit US $ 66.43 per barrel.