- WAGMI
- Posts
- IRS: Crypto Staking Is Taxable
IRS: Crypto Staking Is Taxable
Crypto Alpha Week 52 of 2024 to keep you updated on all things Crypto, Web3 and Blockchain
In partnership with
TL;DR
MicroStrategy's Bold Bitcoin Expansion and Share Plans
Russia Adopts Bitcoin to Circumvent Sanctions
Ethereum ETFs Gain Amid Bitcoin Decline
Vitalik Buterin Adopts Moo Deng with 88 ETH
Solana’s Jito Staking Pool Exceeds $100M in Monthly Tips
Solana Co-Founder Sued for Alleged Staking Rewards Theft
Uniswap V3 Launches on Saga’s Appchain
Tokenized GPU Marketplace Launched by Aethir and Injective
Avalanche9000 Transforms Blockchain Gaming with Fundora
Avalanche Foundation Strengthens Beam Ecosystem
IRS Confirms Taxation of Staking Rewards
Trump-Linked Strive Files for Bitcoin Bond ETF
And much more!
Premium Content of the Week
Sponsor of the Week
Experience top-tier security with Vultisig, the most secure crypto wallet. Self-custodial, multi-chain, DeFi native, with no tracking and built-in two-factor authentication.
Don't miss out on the $5M Vultisig Airdrop! With just these five simple steps above you can take part. Follow the link below and get started!
Bitcoin Highlights of the Week
MicroStrategy has strengthened its position as a leading Bitcoin holder by acquiring 5,262 BTC for $561 million, raising its total holdings to 444,262 BTC purchased at an average price of $62,257 per coin.
The firm, led by Michael Saylor, also announced plans to increase its authorized share count by $10 billion, potentially expanding shares by 3,000%, to fund further Bitcoin purchases. These moves come as the company reports strong year-to-date BTC yields of 73.7% and celebrates its inclusion in the Nasdaq 100 index, reflecting its growing market influence and commitment to a Bitcoin-centric strategy.
Russia is leveraging Bitcoin and digital assets to bypass Western sanctions and bolster international trade. Finance Minister Anton Siluanov confirmed ongoing Bitcoin transactions and expressed confidence in expanding their use in 2025. Recent laws legalized Bitcoin mining and trade while introducing tax exemptions to boost financial stability.
Russia, the second-largest Bitcoin miner globally, produced 54,000 BTC in 2023, generating $550 million in tax revenue. Despite energy-based mining restrictions, the government views Bitcoin as critical to reshaping global trade and reducing reliance on the US dollar. President Putin advocates for Bitcoin’s decentralized nature and suggests a national Bitcoin reserve.
KULR Technology Group, listed on the NYSE, has launched its Bitcoin treasury with a $21 million purchase of 217.18 BTC at an average price of $96,556 per Bitcoin. The energy management company plans to allocate up to 90% of surplus cash into Bitcoin, utilizing Coinbase Prime for custody services.
Inspired by MicroStrategy’s strategy, CEO Michael Mo described Bitcoin as "digital energy" aligning with KULR's mission. This move reflects a growing trend among firms adding Bitcoin to their balance sheets, including Matador Technologies and Quantum BioPharma, further cementing Bitcoin’s role as a strategic asset in corporate finance.
Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission for the "Bitwise Bitcoin Standard ETF." This ETF targets companies that hold at least 1,000 Bitcoins in their corporate treasuries, reflecting the rising trend of businesses adopting the "Bitcoin standard." The fund aims to track firms leveraging Bitcoin as a strategic asset.
While this move aligns with corporate Bitcoin adoption, it comes with the inherent risks and regulatory scrutiny associated with cryptocurrency investments. This filing highlights the growing institutional interest in Bitcoin as part of corporate financial strategies.
Matador Technologies, a Canadian blockchain company, has added Bitcoin to its corporate treasury with a $4.5 million purchase. The decision is driven by the desire to shield against potential depreciation of the Canadian dollar, given the nation's economic risks.
The company views Bitcoin as a hedge and store of value, citing its liquidity, security, and institutional adoption. Matador is also integrating Bitcoin into a digital gold platform launching in early 2025, combining physical gold with blockchain technology. This move aligns with the growing trend of corporations incorporating Bitcoin into their financial strategies, like MicroStrategy and Tesla.
Sponsor of the Week
Looking for unbiased, fact-based news? Join 1440 today.
Upgrade your news intake with 1440! Dive into a daily newsletter trusted by millions for its comprehensive, 5-minute snapshot of the world's happenings. We navigate through over 100 sources to bring you fact-based news on politics, business, and culture—minus the bias and absolutely free.
Daily Alphas of the Week
Ethereum Highlights of the Week
On December 23, 2024, Ethereum spot ETFs saw a notable surge, with net inflows totaling $130.8 million. BlackRock's ETHA ETF led with $89.5 million, while Fidelity’s FETH ETF received $46.4 million. In contrast, Bitcoin spot ETFs experienced significant outflows of $226.5 million.
This shift suggests a growing institutional preference for Ethereum, potentially marking the onset of an "altcoin season," where investor focus moves from Bitcoin to other cryptocurrencies. The trend indicates a shift in market sentiment and investment strategy towards Ethereum and its increasing institutional adoption.
Vitalik Buterin, Ethereum's co-founder, adopted Moo Deng, a viral pygmy hippopotamus, with an 88 ETH donation, worth approximately $292,000, to the Khao Kheow Open Zoo in Thailand. The donation is part of the zoo’s Wildlife Sponsorship Program. Buterin also pledged an additional 10 million THB (around $290,000) to support Moo Deng’s family over the next two years.
The hippo became famous in September 2024 due to her expressive social media presence. Buterin’s contribution aligns with his history of charitable donations, including substantial ETH gifts to other causes, showcasing his ongoing support for charitable initiatives.
Metamask has introduced its Gas Station feature to address the challenges of transaction fees on the Ethereum mainnet. Integrated into Metamask’s Smart Transactions with Swaps, the feature provides gas-included transaction quotes, helping users avoid running out of ether (ETH) to cover network fees.
Previously, replenishing ETH required time-consuming exchanges, potentially missing key DeFi opportunities. Gas Station aggregates data from decentralized exchange sources, ensuring competitive rates and smoother interactions. Initially available on Metamask’s browser extension, it supports assets like USDT, USDC, DAI, and WETH, with mobile functionality expected in future updates.
Aave is considering integrating Chainlink’s Smart Value Recapture (SVR) oracle service to capture profits from maximum extractable value (MEV) and distribute them to users. The SVR service, introduced on Dec. 23, targets MEV generated through Aave liquidations, which currently benefit liquidators more than protocol users.
Aave estimates SVR could capture about 40% of MEV profits, which would be redirected to Aave’s decentralized autonomous organization (DAO) for the benefit of its community. This integration aims to optimize Aave’s liquidation process, reduce MEV-related profits for third parties, and enhance user returns within the ecosystem.
Ethereum NFT trading volume surged to $186 million last week, marking a 67% increase from the previous week's $111 million and a three-month high. The spike was driven primarily by the Pudgy Penguins collection, which generated $108 million in volume following the launch of its $PENGU token.
Individual penguins traded above 29 ETH before experiencing a sharp decline. The token launch also spurred increased activity in other collections, like Azuki and Doodles, which saw $23 million and $17 million in trading volume, respectively. Ethereum remains the dominant platform for high-value NFT trading, despite competition from other chains.
Enough Reading? Check out WAGMI YouTube
Watch and Listen to WAGMI YouTube for interesting and educational crypto-, web3-, and Blockchain content - all for free:
Solana Highlights of the Week
Solana's Jito staking pool surpassed $100 million in monthly revenue from priority fees and tips in November and December, with November's peak reaching $210 million, according to Kairos Research.
Jito's success is driven by the rising popularity of Solana and the practice of Maximum Extractable Value (MEV), where validators prioritize certain transactions for higher tips. Jito’s software is used by over 93% of Solana validators, and the protocol's total value locked has reached nearly $2.75 billion. Jito also plans to share a portion of its tip revenue with JitoSOL restakers, offering 8.6% yields.
Agridex, a Solana-based platform for real-world asset tokenization, has facilitated its first onchain coffee transaction. Tiki Tonga Coffee, a UK-based brand, exported coffee to South Africa, using Agridex for instant settlement in British pounds. The transaction carried a low 0.5% fee, compared to the typical 5%-7% in traditional systems.
Agridex aims to revolutionize agricultural commodity transactions, offering instant settlements for various products like livestock and wine. The platform's tokenization model has garnered $4.5 billion in pending transactions and is seen as a key opportunity for cost-effective, blockchain-driven agricultural trade.
VolatilityShares has filed for an exchange-traded fund (ETF) based on Solana futures, aimed at providing investors with exposure to the Solana ecosystem. The proposed ETF will offer leverage options of 1x, 2x, and -1x, allowing investors to maximize returns or hedge against market declines.
If approved by the SEC, this ETF will trade on CFTC-registered exchanges, ensuring a secure environment for investors. VolatilityShares, known for its innovative ETFs, previously launched dual-asset funds combining major assets like BTC and ETH. This Solana ETF could unlock new opportunities for crypto and traditional market investors.
Subscribe to WAGMI Premium to read the rest.
Become a paying subscriber of WAGMI Premium to get access to this post and other subscriber-only content.
Already a paying subscriber? Sign In.
A subscription gets you:
- • No Ads
- • Weekly News Summary
- • Weekly Market Summary
- • Weekly Airdrop Summary
- • Weekly Memecoin Summary