BTC hits another record on news of a first-of-its-kind Texas BTC strategic reserve

BTC hit a fresh record of USD 105k yesterday after legislation was introduced in Texas to that would, if passed, set up a strategic reserve for the digital currency. The rules would allow the state to accept taxes, fees and donations in BTC that would be held for a minimum of five years, Reuters and CNBC report. Also yesterday, president-elect Donald Trump said yesterday that he would look into setting up a strategic BTC reserve at the federal level.

In context: The news comes following a rally that saw BTC climb over 50%, spurred on by Donald Trump’s election in the US, and saw it hit the USD 100k milestone for the first time this month.

It’s not the first time we’ve heard of this: In July 2024, Trump initially touted the idea of a strategic national BTC reserve, predicting the digital currency could surpass gold’s market capitalization of USD 16 tn.

The US is not alone: The possibility of a US BTC reserve has gained traction following similar moves by Russia, where lawmakers are advocating for a national BTC reserve as an alternative to foreign currency reserves. Analysts predict that BTC’s price could reach as high as USD 800k by the end of next year, resulting in a market capitalization of approximately USD 15 tn, Forbes reports.

MARKETS THIS MORNING-

Asian markets are mixed after South Korea’s president was impeached over the weekend, and as investors await key interest rate decisions from the Bank of Japan and the People’s Bank of China. South Korea’s Kospi is hovering near the flatline, while Kosdaq is up nearly 0.7%. Japan’s Nikkei is also up, while China’s CSI 300 and Hong Kong’s Hang Seng are both down.

Over on Wall Street, futures are calm following a losing week for the S&P 500 and the Nasdaq.

THE CLOSING BELL: TADAWUL-

The TASI fell 0.3% yesterday on turnover of SAR 3.3 bn. The index is up 0.8% YTD.

In the green: Saudi Cable (+8.5%), Sumou (+6.6%) and Walaa (+3.5%).

In the red: Albaha (-6.1%), Riyadh Cables (-3.1%) and Al Marai (-2.3%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.2% yesterday on turnover of SAR 69.3 mn. The index is up 27.1% YTD.

In the green: Dar Al Markabah (+14.3%), Knowledge Tower (+14.2%) and Mufeed (+10.8%).

In the red: Osool and Bakheet (-9.8%), Horizon Food (-7.1%) and Obeikan Glass (-6%)

CORPORATE ACTIONS-

#1- Tadawul suspended trading on Savola Group’s shares to process a capital reduction, according to a statement by the exchange. The food giant’s stock price was reset to SAR 27.80, with outstanding orders cancelled, while trading on the stock is set to resume tomorrow. The pause on trading comes after Savola secured shareholder approval for a 73.5% capital reduction to SAR 3 bn via shares cancellation, according to a separate filing to Tadawul.

IN CONTEXT- As per its BoD’s recommendation, the move sees the firm cancelling some 834 mn shares and distributing its stake in Almarai to eligible shareholders. The reduction is intended to optimize Savola’s capital structure, as the capital is deemed excessive for current needs. Riyad Capital has been appointed as the financial advisor on the transaction.

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#2- Walaa Cooperative Ins.’s rights issue was 90.5% covered, with investors booking SAR 423.2 mn worth of shares, according to a filing to Tadawul. Remaining shares will be up for grabs in a two-day institutional rump offering due to kick off today. Shares will be allocated to investors submitting the highest bids, while unsubscribed shares will be acquired by the offering’s underwriter at the SAR 11 offering price. The capital increase — which represents nearly 50% of current capital — is intended to support the company’s expansion plans and to maintain its credit rating

#3- Jeddah-born fast food chain Ghida Al Sultan sees ownership shuffle: Mefic Fund for Private Equity Opportunities — which holds a 24% stake in local fast food chain Ghida Al Sultan — has notified Ghida that it is planning to transfer its entire ownership in the firm to the personal portfolios of its investors, in proportion to their ownership stakes, according to a filing to Tadawul. The move will result in changes to Ghida Al Sultan’s list of major shareholders.

#4- Riyadh-based event planner Mufeed is distributing SAR 33 mn in dividends at SAR 5 per share for 1H 2024, the firm said in a disclosure to Tadawul. Distribution is set for Monday, 23 December.