ReportWire

Tag: Michael saylor

  • Modest Bitcoin Purchase From Strategy as Unrealized Losses Near $7 Billion: Details

    [ad_1]

    The company’s total holdings were bought for over $54.5 billion – the current valuation is a lot less.

    The ongoing cryptocurrency market correction, which many analysts have decisively called a full-on bear market, has not deterred the world’s largest corporate holder of bitcoin.

    Michael Saylor’s BTC-focused brainchild just announced its latest acquisition, which was relatively modest given the company’s history of billion-dollar purchases in the past.

    Strategy spent just under $40 million to acquire 592 BTC at an average price of $67,286 per unit. This puts its entire cryptocurrency portfolio at a whopping 717,722 BTC, purchased for approximately $54.56 billion at an average price of $76,020.

    An update shared by Walter Bloomberg informed that Strategy sold 297,940 Class A shares via its at-the-market program in the past week to raise the funds for the BTC purchase. As of yesterday, the firm had $37.4 billion in securities available for future ATM sales, including $7.8 billion in MSTR stock and $20.3 billion in STRK stock.

    Given the asset’s most recent crash to $66,200 as of press time, this means that the Wall Street-listed firm now sits on a growing unrealized loss of around $7 billion.

    Recall that Strategy’s behavior was very different just over a month ago, when it splashed more than a billion dollars to accumulate 13,627 BTC. At the time, its portfolio was well in the green, with an unrealized profit of over $10 billion.

    You may also like:

    The landscape has changed substantially since then, with BTC currently trading around 50% away from its all-time high, which led to speculation that the bear market is raging on.

    SPECIAL OFFER (Exclusive)

    Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

    LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

    [ad_2]

    Jordan Lyanchev

    Source link

  • Strategy: Balance Sheet Stable Unless BTC Falls Below This Critical Level

    [ad_1]

    Strategy’s Bitcoin reserves cover debt, and only a prolonged drop to $8,000 could possibly force restructuring.

    Strategy CEO Phong Le told investors on Thursday that the company’s balance sheet remains stable despite recent crypto market turbulence, though extreme scenarios could pose challenges.

    The firm, the world’s largest corporate Bitcoin (BTC) holder, says it would only need to consider restructuring or additional capital if the cryptocurrency fell to $8,000 and remained there for five to six years.

    Balance Sheet Holds Amid Bitcoin Sell-Off

    According to reporting by The Block, Le, speaking during Strategy’s fourth-quarter earnings call, emphasized that even after recent market losses, the company’s Bitcoin reserves comfortably cover its convertible debt.

    “In the extreme downside, if we were to have a 90% decline in Bitcoin price, and the price was $8,000, that is the point at which our Bitcoin reserve equals our net debt, and we would then look at restructuring, issuing additional equity, issuing additional debt,” he said.

    The call came after a sharp sell-off across crypto markets, with BTC down roughly 7% in 24 hours, trading just under $66,000 at the time of writing. Strategy’s stock, MSTR, slid 17% to $107, erasing much of its gains from late 2025 and leaving it down about 72% over six months.

    Analysts on social media noted that today’s session saw Bitcoin drop more than $10,000, the first time it has ever dipped by such an amount in a single day, according to The Kobeissi Letter. The dramatic loss in value was part of a structural market downturn that has wiped out $2.2 trillion in crypto market value since mid-October 2025.

    Executive Chairman Michael Saylor also spoke in the call, dismissing concerns about quantum computing threats to Bitcoin as “horrible FUD” and outlining plans for a security initiative to support potential upgrades, including quantum resistance.

    He reiterated that Strategy’s long-term approach is designed to withstand volatility, pointing to supportive U.S. regulatory developments and the growing integration of Bitcoin into credit markets and corporate balance sheets.

    You may also like:

    Strategic Outlook

    Strategy is still expanding its Bitcoin holdings despite short-term price swings. Earlier this week, the company acquired 855 BTC for $75.3 million at an average price near $88,000, bringing its total reserves to over 713,500 units.

    The buy followed a $25 billion accumulation in 2025 and a $1.25 billion purchase in early 2026, funded largely through capital raises.

    Saylor has argued that the significance of Bitcoin treasury companies lies in credit optionality and institutional adoption rather than daily price action. According to him, firms holding BTC on balance sheets can leverage assets for debt issuance, lending, or financial services, giving them flexibility that ETFs lack.

    While sentiment has deteriorated sharply in recent months, he framed these developments as part of a long-term integration of digital capital into global financial systems, rather than a short-term price event.

    SPECIAL OFFER (Exclusive)

    SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).

    [ad_2]

    Wayne Jones

    Source link

  • Analyst Predicts XRP Price Will Hit $100 Before Bitcoin Hits $1 Million

    [ad_1]

    A crypto analyst has issued a decisive projection that challenges the long timelines often associated with major price milestones for Bitcoin. His outlook was presented in response to the ultra-bullish forecasts from Michael Saylor and Jack Mallers, who have spoken openly about the possibility of Bitcoin reaching between $1 million and $20 million per coin. 

    Rather than focusing on Bitcoin’s distant targets, the analyst directed attention to XRP, insisting that XRP will reach $100 long before Bitcoin touches the seven-figure mark.

    Analyst Says XRP Will Reach $100 Before Bitcoin’s Million-Dollar Target

    There have been many bullish predictions of Bitcoin breaking above the $1 million mark in recent months, with notable names like Michael Saylor and Cathie Wood pointing to million-dollar targets. 

    Related Reading

    However, an analyst who goes by the name 24HRSCRYPTO on the social media platform X referenced Saylor and Mallers’ price prediction, which places future Bitcoin valuations in the tens of millions per coin and implies a market cap approaching $500 trillion. He contrasted those long-range projections with what he believes is a more attainable and nearer-term milestone for XRP. 

    Punching in the numbers shows that XRP is a 4,445% move away from $100 based on its current price level of around $2.2. Bitcoin, on the other hand, is 990% away from the $1 million price.

    Even with that difference, the analyst noted, “You will see XRP at $100 before Bitcoin hits $1 million.” The statement points to the view that XRP is positioned for faster price growth in the foreseeable future, as seen by price dynamics in the past few months. The crypto is increasingly being positioned in a situation where demand and adoption of the Ripple ecosystem could take it to new heights.

    On the other hand, Bitcoin’s price action is slowing down relative to XRP. Notably, technical analysis of the XRP/BTC pair places XRP on the path to outperforming Bitcoin in the coming weeks and months. 

    The Altcoin Will Hit $1,000 Before Bitcoin Touches $19 Million

    The analyst extended his projection even further by asserting that XRP could rally to $1,000 before Bitcoin comes close to the $19 million figure referenced by Saylor. Such a valuation for Bitcoin would imply a market capitalization of roughly $500 trillion, a scale far beyond anything seen in global financial history. 

    Related Reading

    Measured from today’s levels, Bitcoin would need to climb roughly 20,635% to reach the $19 million mark. XRP’s path to $1,000 amounts to an even larger jump of about 45,300%, which corresponds to a market cap of $60 trillion based on its current circulating supply. Still, XRP reaching $1,000 is, in his view, more feasible than Bitcoin reaching millions per coin.

    XRP trading at $2.19 on the 1D chart | Source: XRPUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

    [ad_2]

    Scott Matherson

    Source link

  • Saylor Shoots Down Sale Rumors: ‘Strategy Bought BTC Every Day This Week’

    [ad_1]


    BTC’s volatility comes with the territory, said Saylor.

    The cryptocurrency markets tumbled hard on Friday once again, with BTC leading the losses with a nosedive to under $94,000, which became a six-month low.

    Amid the overall uncertainty and market panic, reports emerged at one point claiming that the ultimate bitcoin bull – Michael Saylor – and his company had begun to sell off significant portions of their massive holdings.

    No Such Thing, Says Saylor

    Although the actual claims that Strategy had been selling came from some rather small accounts (at first) with little credibility, they were quickly picked up and reshared by more established people within the community, some with more than 500,000 followers on X. Consequently, panic spread rapidly among some community members, but most seemed unfazed as they refused to believe that Strategy will indeed sell.

    Saylor, the company’s bitcoin champion and co-founder, refuted the rumors on X and during an interview with CNBC. In fact, he doubled down on the asset, as he has done multiple times in the past during other such intense corrections, and noted that Strategy used the dip opportunity to accumulate more every day this week.

    During the aforementioned CNBC interview, he explained that such volatility is expected in risk-on assets like BTC. He advised people who want to have bitcoin exposure to prepare for similar events, but to focus on a broader (4-year) scale in which the cryptocurrency outperforms every asset class.

    Additionally, he said Strategy doesn’t have any trigger points in which it would be under pressure to dispose of its BTC holdings, and even an 80% drop would not harm it.

    You may also like:

    Before a new announcement comes on Monday about a Strategy purchase, the company’s known holdings following the last one stood at 641,692 BTC. Even with BTC’s correction, this stash is worth almost $62 billion.

    Arkham Explains

    Some reports claimed that Arkham Intelligence had insisted that Strategy indeed sold off, but the company also refuted these speculations and explained what actually took place. It outlined Strategy’s transfer of 43,415 BTC to more than 100 different addresses from Coinbase Custody to a new custodian.

    “This does not mean that Strategy has sold their BTC, nor do transfers from Arkham’s Strategy entity automatically imply the sale of those assets,” its post reads.

    The team reassured that Strategy “regularly undergoes wallet/custodian rotations,” and that most of the movements were reported Friday morning as a “continuation of those transfers.”

    SPECIAL OFFER (Exclusive)

    SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).

    [ad_2]

    Jordan Lyanchev

    Source link

  • New Monday, New Bitcoin Purchase: Strategy Increases Its Holdings to 640,418 BTC

    [ad_1]


    The company sits on a massive paper profit of almost $24 billion due to its investment in BTC.

    Strategy, the software company formerly known as MicroStrategy, has established a tradition of announcing Bitcoin purchases at the start of each week, and this Monday was no exception.

    Michael Sayler – the devoted proponent of the primary cryptocurrency and founder of the firm – revealed on X that the entity has scooped up 168 BTC for roughly $18.8 million at an average price of $112,051 per unit. Strategy has achieved BTC Yield of 26% YTD 2025, and following the latest buy, it has increased its holdings to 640,418 BTC.

    The company started its BTC journey in the summer of BTC and has spent around $47.4 billion to acquire its stash. As of this writing, the USD equivalent of its crypto holdings is over $71 billion, meaning Strategy is sitting on a massive profit of almost $24 billion (at least on paper).

    Meanwhile, the firm’s stocks have headed south in the past few months after peaking above $450 during the summer. Currently, MSTR is worth around $289, representing a 13% decline over the past 30 days.

    SPECIAL OFFER (Sponsored)

    Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

    LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

    [ad_2]

    Dimitar Dzhondzhorov

    Source link

  • Total Illiquid Bitcoin Has Reached 72% Of Supply, What Does This Mean For Price?

    [ad_1]

    The total illiquid Bitcoin has reached a new high, providing a bullish outlook for the flagship crypto. This refers to the BTC supply that is unlikely to hit the open, given the long-term holding of the investors who own these coins. 

    Bitcoin’s Illiquid Supply Hits New High

    Glassnode data shows that Bitcoin’s illiquid supply has reached a new high of 14.3 million BTC, marking over 72% of the flagship’s circulating supply. This supply is held by long-term holders (LTHs) who haven’t moved their coins in over seven years, highlighting a strong conviction in the flagship crypto. 

    Related Reading

    A large part of Bitcoin’s supply being in the hands of long-term holders is typically bullish, as it continuously reduces the amount of selling pressure on the coin. It could also lead to a potential supply shock, whereby demand outpaces supply. 

    Source: Chart from Glassnode on X

    Asset manager Fidelity stated in a research report that this new demand for BTC, coupled with a fixed supply and decreasing issuance schedule, was what likely sparked the rally to a new all-time high (ATH) above $124,000. Fidelity further predicted that this upward trend for the Bitcoin price could continue in the years ahead. 

    Meanwhile, Fidelity highlighted two distinct cohorts that satisfy the threshold of Bitcoin’s illiquid supply. The first is the BTC that was last moved seven or more years ago, while the second is public companies that hold at least 1,000 BTC. Michael Saylor’s Strategy leads the latter as his company currently holds 638,985 BTC, which accounts for over 3% of Bitcoin’s total supply. Strategy hasn’t sold any coin since it began accumulating in 2020. 

    Fidelity predicts that the combined group will hold over six million Bitcoin by the end of 2025 or over 28% of the crypto’s total supply of 21 million. The asset manager noted that BTC’s illiquid supply has only decreased quarter-over-quarter once in its history. 

    BTC’s Scarcity May Become Its “Focal Point”

    Fidelity predicts that over time, Bitcoin’s scarcity may become the focal point as more entities buy and hold BTC long term. They noted that the illiquid supply could rise drastically if nation-state adoption increases and the regulatory environment continues to evolve. Countries like the U.S. are already looking to establish a Strategic Bitcoin Reserve, which could create a massive supply shock. 

    Related Reading

    On the other hand, Fidelity noted that there is the possibility of large amounts of Bitcoin’s illiquid supply being transferred. This could happen as long-term holders and public companies move to realize gains, possibly due to a significant price appreciation. The asset manager earlier mentioned that early signs of potential capitulation may already be emerging as 80,000 ancient BTC were sold in July 2025.  

    At the time of writing, the Bitcoin price is trading at around $115,600, down in the last 24 hours, according to data from CoinMarketCap.

    Bitcoin
    BTC trading at $115,963 on the 1D chart | Source: BTCUSDT on Tradingview.com

    Featured image from Pixabay, chart from Tradingview.com

    [ad_2]

    Scott Matherson

    Source link

  • Bitcoin Standard Author Challenges Michael Saylor: Should Banks Offer Yield On Your BTC?

    Bitcoin Standard Author Challenges Michael Saylor: Should Banks Offer Yield On Your BTC?

    [ad_1]

    Two of Bitcoin’s pre-eminent thought leaders are at odds with each other as to whether banks can – or should – provide sustainable yield on their customers’ BTC deposits.

    Michael Saylor – executive chairman of MicroStrategy, the world’s largest corporate Bitcoin owner – said in a recent podcast appearance that Bitcoin could become a form of “perfected capital” that also generates a return for its holders through digital banking services.

    By contrast, Saifedean Ammous – author of the famous Bitcoin tome “The Bitcoin Standard” – countered that sustainable yield isn’t possible with a fixed supply asset like BTC.

    Can Bitcoin Yield Really Work?

    According to Saylor, the first generation of “digital banks” to offer Bitcoin yield were companies like BlockFi and Celsius – which ultimately collapsed due to irresponsible management.

    Yield at both firms was created using lending, borrowing, and rehypothecations strategies – but fell apart when those firms were liquidated on their crypto-collateralized loans. That said, if the same services were provided by mainstream banks with “adult supervision” and risk controls, Saylor believes they could provide Bitcoin yield in a lasting way.

    “The best situation would be the United States government backing one of the ten biggest banks that then gave you yield on your Bitcoin, then made the loans,” Saylor said. In this way, he claimed firms with megalithic balance sheets like JPMorgan could generate a 5% “risk-free” yield to customers on their BTC without those customers ever having to sell it.

    Saifedean remained skeptical, however. “Ultimately I don’t think this model works without a lender of last resort,” he said. “I think people are just going to learn the hard way to not do this.”

    Lender of Last Resort

    The “lender of last resort” refers to a central bank that can print money to bail out insolvent commercial banks and their creditors – much like what occurred during the regional banking crisis in March 2023. Saifedean’s book spends much time rebuking the evils of central banking for enabling money printing that devalues the savings of the population.

    “If everyone’s got their Bitcoin at 5%, how are we gonna make more Bitcoin?” the economist asked. “Eventually more Bitcoin needs to be paid than there is Bitcoin in existence.”

    Saifedean made a similar point to Celsius CEO Alex Mashinsky back in 2019 before the latter’s company went under 3 years later. Mashinsky was scheduled to begin his fraud trial this week, but the trial has now been delayed until January 2025.

    In response, Saylor said that big banks are backed by the government, and so they ultimately couldn’t fail unless the U.S. government itself failed. Furthermore, he said if holders can’t generate yield on their Bitcoin, then BTC will be a ‘non-performing’ asset no better than government bonds that pay 0% yield.

    “We need a functioning banking system to move the capital around,” he said. “Why would you apologize for getting paid a return on your capital?”

    SPECIAL OFFER (Sponsored)

    Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

    LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!

    [ad_2]

    Andrew Throuvalas

    Source link

  • Crypto Twitter Skeptical As MicroStrategy Proposes Bitcoin-Based Identity Solution

    Crypto Twitter Skeptical As MicroStrategy Proposes Bitcoin-Based Identity Solution

    [ad_1]

    MicroStrategy has proposed a new Bitcoin-based strategy for combatting online spam – though Bitcoiners are skeptical as to whether it’s a good idea.

    During the annual MicroStrategy World conference on Wednesday, the company’s executive chairman Michael Saylor unveiled “MicroStrategy Orange” – an open-source decentralized identity solution built on Bitcoin.

    What is MicroStrategy Orange?

    MicroStrategy described their technology as an “enterprise-grade platform for implementing Decentralized Digital Identifiers (DIDs)” across any organization.

    One of the platform’s core services will be ”Orange for Outlook,” which provides an orange check for emails verifying that they’re from an authentic person or entity, rather than spam. It would be a bit like Twitter’s yellow check, but for email – and also fast, virtually free, permanent, and non-threatening to user privacy.

    “Our vision is to provide an internet native, decentralized digital identity backed by Bitcoin,” said Saylor. “It is fault tolerant, it is censorship resistant, it does use the most advanced cryptography.”

    Unlike prior attempts at a decentralized identity that had severe practical constraints, MicroStrategy’s platform will allow enterprises to deploy DIDs to tens of thousands of team members within a matter of hours.

    Those digital identities would be anchored into the Bitcoin blockchain using public-private key cryptography.

    Specifically, users could sign the headers of their emails using private keys generated through MicroStrategy Orange, from which public keys are paired to a DID permanently inscribed to the Bitcoin blockchain. From there, private key signed emails can be verified for their legitimacy on-chain by referencing DID’s back to the user’s corresponding public key.

    According to Saylor, these identifiers are highly efficient in terms of on-chain storage, including the ability to store tens of thousands of DIDs within a single Bitcoin transaction. It requires no use of a Bitcoin sidechain, though it could be compatible with Bitcoin layer 2 networks.

    Criticisms Of Saylor’s Offering

    MicroStrategy works by using a modified approach to Ordinals inscriptions to store DID data on Bitcoin, leveraging the ability to store arbitrary data in the witness of a Bitcoin transaction. This has since allowed NFTs and tokens to begin trading on Bitcoin, which sometimes drive network fees to extremely high levels.

    “DIDs go nowhere, ever,” said Tony Giorgio, co-founder of Mutiny Wallet, on Twitter. “Saylor is using Bitcoin as his own personal and corporate data store.”

    Daniel Buchner, a decentralized identity expert at Block, also said that Saylor’s solution “needlessly bloats Bitcoin,” saying that while the idea is good, it “doesn’t need to be done the way he’s chosen to.”

    Ordinals fans were big fans of the announcement, believing it provided legitimacy to their protocol that, until now, has largely been used for minting speculative NFTs and meme tokens.

    “Makes sense. Don’t hate on Ordinals. Lots of applications for Bitcoin as a data layer,” tweeted Fred Krueger in response to the announcement.

    SPECIAL OFFER (Sponsored)

    LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

    [ad_2]

    Andrew Throuvalas

    Source link

  • MicroStrategy Founder Michael Saylor Nets $370M From MSTR Sales

    MicroStrategy Founder Michael Saylor Nets $370M From MSTR Sales

    [ad_1]

    MicroStrategy founder Michael Saylor has sold up to 370,000 shares of his brainchild over the past four months. This follows his entry into a stock-sale agreement with the company last year.

    Under the agreement, he has the authorization to unload up to 400,000 shares until April of this year.

    Saylor to Offload 400,000 Shares

    Michael Saylor has successfully cashed in 370,000 shares, totaling about $372.7 million in value, from this year’s stock sales. This accounts for over 90% of the agreed-upon 400,000 shares outlined in last summer’s September agreement with MicroStrategy.

    Under this agreement, known as a 10b5-1 plan, Saylor could sell up to 5,000 shares daily from January 2 to April 25. These shares were tied to a vested stock option set to expire on April 30, 2024. So far, his Class A holdings have decreased to 30,000 shares following the latest disclosed sale on Thursday.

    Despite a 37% decline from its March peak, the stock has enjoyed significant growth, rising 91% this year following a remarkable 346% surge in 2023, making it one of the top performers in the U.S. stock market.

    As the largest MicroStrategy shareholder, Saylor’s Class B holdings are estimated at $2.3 billion. Additionally, he holds 400,000 Class A shares acquired through an option granted in 2014, which are the shares he is swiftly selling off. This sales plan was discreetly disclosed in the company’s third-quarter earnings filing in November.

    Saylor’s Bitcoin Holdings Thrive Amid Market Surge

    While Saylor has made significant stock sales, most of his wealth is tied up in his Class B holdings of MicroStrategy, coupled with the 17,732 BTC he acquired in 2020, now valued at approximately $1.1 billion.

    In the meantime, MicroStrategy has accumulated over 214,000 BTC since 2020. These assets, constituting roughly 1% of the total existing BTC supply, are now valued at approximately $13.6 billion, comprising the majority of MicroStrategy’s $21.3 billion market capitalization.

    Bitcoin has been surging this year, increasing MicroStrategy’s returns due to the launch of spot BTC exchange-traded funds (ETFs) in January. Furthermore, the Bitcoin halving, which takes place every four years and halves rewards for Bitcoin miners, has attracted more participation in the market.

    In a market where consumers can purchase Bitcoin directly on various exchanges or invest in different new ETFs, Saylor notes MicroStrategy’s ongoing advantage as a leveraged BTC plays without the associated management fees.

    Last month, the company announced it raised $782 million through a convertible debt sale at an interest rate of 0.625%, specifically stating the intention to acquire more BTC with the proceeds.

    SPECIAL OFFER (Sponsored)

    LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

    [ad_2]

    Wayne Jones

    Source link

  • Coinbase Plans $1B Bond Sale That Avoids Hurting Stock Investors, Copying Michael Saylor’s Successful Bitcoin Playbook

    Coinbase Plans $1B Bond Sale That Avoids Hurting Stock Investors, Copying Michael Saylor’s Successful Bitcoin Playbook

    [ad_1]

    • Coinbase plans to raise $1 billion through a convertible debt offering, following the path of Michael Saylor’s MicroStrategy.

    • The offering has an extra provision, “negotiated capped call transactions,” which will ensure less dilution at the conversion.

    • The raise comes after Wall Street analysts threw in the towel on their bearish stance on the stock.

    The only publicly traded cryptocurrency exchange in the U.S., Coinbase (COIN), announced a plan to cash in on the recent rally in digital assets by raising $1 billion through selling convertible bonds, avoiding an equity sale that could hurt its stock price and also following the path Michael Saylor’s MicroStrategy has taken to fund its crypto aspirations.

    Coinbase said on Tuesday that it will offer the unsecured convertible senior notes via a private offering. Convertible bonds can be turned into shares of the issuing company (or cash) at a certain point. For the notes Coinbase plans to offer, that conversion year is 2030. Had the company chosen instead to raise money by selling new Coinbase shares, that would dilute the ownership interest of existing shareholders – something investors may view unfavorably.

    By tapping the debt market to fund its crypto business, Coinbase is pursuing a strategy Saylor has pursued at MicroStrategy over the past few years. Saylor’s company has purchased 205,000 bitcoin, which are now worth nearly $15 billion, much of which is funded by MicroStrategy’s sale of more than $2 billion of convertible notes. Just this month, MicroStrategy sold $700 million of them, and there was enough demand that the company could sell more than the originally anticipated $600 million.

    Coinbase is taking an extra step to reduce the dilution when its debt is converted into equity by offering “negotiated capped call transactions” – essentially a hedge to prevent dilution during the conversion of notes. (MicroStrategy did not include such a provision in its most recent deal.)

    Issuers use these hedges with convertible debt to prevent dilution to existing shareholders, even when their share price rises above the conversion price, though they have to pay a fee. During its breakneck rally, fitness company Peloton famously raised $1 billion in convertible debts in 2021, including a capped call option. “The capped call transactions will cover, subject to customary adjustments, the number of shares of Coinbase’s Class A common stock that will initially underlie the notes,” Coinbase said.

    The move comes after a massive rally in bitcoin, which has taken the price of the digital asset to an all-time high above $73,000. Bitcoin is up 67% this year, while Coinbase’s stock soared by 48% in the same time period. Publicly traded companies often take advantage of bull markets by raising money by selling new securities such as equity, convertible notes, etc.

    Coinbase said it may use proceeds from its transaction to repay debt, pay for potential capped call transactions and possibly to acquire other companies.

    Coinbase’s $1 billion offering comes after some Wall Street analysts ditched their bearish stance on the stock. Raymond James and Goldman Sachs are bears that have upgraded the stock, citing the massive rally in the digital asset markets.

    Read more: Coinbase Gets Another Upgrade, This Time at Raymond James, as Bears Capitulate

    [ad_2]

    Source link

  • MicroStrategy’s bitcoin success sparks speculation on potential S&P 500 entry

    MicroStrategy’s bitcoin success sparks speculation on potential S&P 500 entry

    [ad_1]

    MicroStrategy, the leading corporate holder of Bitcoin, has seen its investment in the cryptocurrency exceed $10 billion, with profits soaring above $4 billion as Bitcoin’s price approached $53,000. 

    Since commencing its Bitcoin acquisition in 2020, MicroStrategy has accumulated 190,000 bitcoins at an average cost of $31,224 per coin, totaling $5.93 billion. This bold move has not only resulted in substantial profits but also positioned the company as a significant influencer in the cryptocurrency domain. The recent surge in Bitcoin’s price, exceeding 20% since the start of 2024, has doubled MicroStrategy’s profits from nearly $2 billion in December of the previous year to over $4 billion, according to a recent investor presentation.

    The company’s pivot and the ensuing financial success have sparked discussions regarding its potential inclusion in the S&P 500 index. Following a remarkable 46% rally in its stock price within an eight-day period up to Feb. 15, MicroStrategy ranked as the 535th largest publicly listed company in the United States. 

    To be considered for the S&P 500, MicroStrategy needs to meet several criteria, including a boost in market capitalization. Currently valued at $12.1 billion, the company’s stock price would need to ascend from $718 to $937 to reach the $15.8 billion threshold for index eligibility.

    Beyond market cap, inclusion in the S&P 500 requires satisfying a spectrum of conditions, such as profitability metrics, trading volume, and public shareholding requirements. MicroStrategy has reported a positive sum of profits over its last four quarters, aligning it closer to these rigorous standards. However, the ultimate decision for inclusion rests with the S&P’s executive committee, which assesses companies against a comprehensive suite of benchmarks.

    Further emphasizing MicroStrategy’s commitment to the cryptocurrency sector, CEO Michael Saylor has spearheaded the company’s transition toward becoming a Bitcoin development entity. This strategic evolution marks a profound shift in operational focus, aiming to not only enhance the Bitcoin network but also to maximize the value of its substantial Bitcoin holdings. 

    Saylor, in recent discussions, pointed to the launch of spot Bitcoin ETFs as a pivotal factor influencing market dynamics, creating a pronounced imbalance between supply and demand. This scenario, he notes, stems from a decade of growing interest in Bitcoin as a viable retail investment option, illustrating MicroStrategy’s intent to lead in the development space within the Bitcoin ecosystem.

    Moreover, the company is navigating the potential for further profits with the anticipated accounting change in 2025, which could value Bitcoin at market prices, potentially adding to MicroStrategy’s profits.


    Follow Us on Google News

    [ad_2]

    Rony Roy

    Source link

  • Michael Saylor Takes Down 80 AI-Generated Deepfake Videos of Himself Every Day

    Michael Saylor Takes Down 80 AI-Generated Deepfake Videos of Himself Every Day

    [ad_1]

    Michael Saylor revealed an alarming trend involving the proliferation of artificial intelligence (AI) generated deepfake videos featuring him.

    Saylor disclosed that his team is tirelessly working to remove approximately 80 such fake videos daily, most aimed at promoting various Bitcoin scams.

    Deepfake Videos Promoting Bitcoin Scams

    Saylor reiterated his warning, urging the community, “Don’t trust, verify.”  stating that “the scammers keep launching more.”

    This revelation follows a surge in reports from X users who encountered fake AI-generated videos featuring Saylor promising to double viewers’ money.

    These videos prompt unsuspecting viewers to scan QR codes, directing their Bitcoin to scammer-controlled addresses.

    Amid these recent advancements, it has been reported that Michael Saylor sold a portion of MicroStrategy stock, totaling between 3,882 and 5,000 shares, from January 2 to 10. This move potentially resulted in a profit of nearly $20 million.

    Saylor had initially planned to sell a maximum of 5,000 shares daily from January 2, 2024, until April 26, 2024, totaling 400,000 shares valued at nearly $200 million.

    Deepfake Threat Escalates

    This incident is reminiscent of a similar situation in 2022 when fake videos of Elon Musk surfaced on various platforms, promoting cryptocurrency platforms with enticing returns. The rise in deepfake content has become a cause for concern in crypto. Solana co-founder Anatoly Yakovenko also fell victim to such manipulative videos earlier this year.

    In an interview with The Verge, Austin Federa, head of strategy at the Solana Foundation, expressed concern over the substantial increase in deepfakes and other AI-generated content.

    Jerry Peng, a researcher at 0xScope, added that AI could play a crucial role in creating more realistic deepfakes, posing a significant threat to unsuspecting crypto users.

    U.S. law enforcement officials issued a warning on January 9, stating that advances in AI may facilitate hacking, scams, and money laundering by lowering the technical know-how required for such crimes.

    However, Rob Joyce, director of cybersecurity at the National Security Agency, argued that AI could also aid authorities in tracking down and combating illegal activities more efficiently.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    [ad_2]

    Wayne Jones

    Source link

  • Michael Saylor to Sell Over $200M Worth of MicroStrategy Shares

    Michael Saylor to Sell Over $200M Worth of MicroStrategy Shares

    [ad_1]

    Michael Saylor, the founder and former CEO of enterprise software firm MicroStrategy, is selling $216 million worth of MSTR stock from his personal holdings.

    In contrast, the Bitcoin supporter has not informed that he will be disposing of any of his BTC stash.

    Stock Value Nearly Quadrupled YoY

    Microstrategy has famously bought Bitcoin whenever possible, on principle, due to Saylor’s belief that the original cryptocurrency is overall less susceptible than cash reserves when it comes to dealing with the loss of asset value.

    “Ultimately, it’s not easy to see what better strategy there might be. We found by simply acquiring and holding Bitcoin we can outperform our peers in the enterprise software business. The regulatory environment for Bitcoin is improving. As capital flows out of the crypto industry, it flows into Bitcoin.”

    The last Bitcoin purchase of the year was announced on the 27th of December.

    The above figure – which also makes MicroStrategy the largest corporate holder of BTC – was behind MSTR’s recent rally, which jumped to over $685.

    The stock marked a 372% increase since the beginning of 2022, thus bringing its value to its highest levels since December 2021, right before crypto winter.

    Now, Saylor is looking to profit off of his HODLing habits.

    A total of 315,000 MSTR stocks will be going on sale at NASDAQ, although it’s possible that even more will be sold later. According to Bloomberg, it was stated in an earlier announcement that up to 400,000 MSTR stocks would be sold between the 2nd of January and the end of April.

    However, it’s equally possible that the co-founder of MicroStrategy simply decided to retain more of his own stock than previously decided, owing to Bitcoin’s continuous bull run in recent weeks.

    An Alternative to ETFs

    As Grayscale, Blackrock, and other companies in the financial industries continue to wait for the approval of the SEC concerning their proposed Bitcoin ETFs, MicroStrategy still has the option of presenting itself as a BTC ETF that also produces software, given that the vast majority of the firm’s financial reserves have been held in the oldest cryptocurrency for several years now.

    As a result, the value of MSTR shares closely follows that of BTC, albeit with variations due to the reception of the software produced by the company, offering an alternative way of buying into the BTC circuit for institutional clients who do not want to deal with a non-traditional financial system.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    [ad_2]

    Cristian Lipciuc

    Source link

  • MicroStrategy buys BTC, Trump transfers ETH to Coinbase, spot ETF drama continues, Zhao grounded | Weekly Recap 

    MicroStrategy buys BTC, Trump transfers ETH to Coinbase, spot ETF drama continues, Zhao grounded | Weekly Recap 

    [ad_1]

    This week, business intelligence firm MicroStrategy augmented its Bitcoin (BTC) stash with $615 million. The drama surrounding the spot BTC ETF continued, while, a U.S. court affirmed that Binance founder Changpeng Zhao remains in the country until his sentencing.

    MicroStrategy accumulates, Trump distributes

    • MicroStrategy continued its Bitcoin buying spree on Dec. 27 when the firm purchased an additional 14,620 Bitcoin at an average price of $42,110 per token, according to chairman Michael Saylor.
    • The company now holds 189,150 Bitcoin currently valued at $7.99 billion. MicroStrategy procured these tokens at an average price of $31,168 per coin, or approximately $5.9 billion.
    • Meanwhile, reports from this week suggested that former U.S. President Donald Trump could be distributing his Ethereum (ETH) holdings. Data shows that an Ethereum wallet, which has been accumulating royalties from Trump’s NFT collection, transferred millions worth of ETH to Coinbase.

    ETF drama consumes BlackRock, VanEck, Coinbase, Bitwise

    • Meanwhile, the drama surrounding the race for a spot BTC ETF spilled into this week. VanEck became the latest asset manager to update its filing for a spot BTC ETF with the U.S. SEC. In the update, the firm adjusted its redemption method to cash-only.
    • Recall that Coinbase had been chosen by BlackRock and others for custody services in their spot BTC ETF filings. This week, the U.S.-based exchange replaced the CEO of its Custody entity with Rick Schonberg in what appears to be a preparation for the approval of a spot ETF.
    • BlackRock further made disclosures pointing to an imminent approval of its product. The asset manager revealed on Dec. 29 that JPMorgan Chase and Jane Street are authorized participants of the upcoming spot BTC ETF. 
    • Amid the sustained ETF race, prominent asset management firm Bitwise disclosed this week that it would be launching its spot BTC ETF with seed funding of $200 million from an unidentified investor. Recall that BlackRock’s seed funding stood at $10 million.

    Mt. Gox creditors finally receive payments

    • This week also featured developments surrounding ongoing court cases and bankruptcy proceedings. Notably, some creditors of the defunct exchange Mt. Gox started receiving their compensations this week, almost a decade after the exchange collapsed with customer’s BTC tokens.

    Judge declares LUNA security, Zhao grounded

    • In the case involving the U.S. SEC and Terraform Labs, Judge Jed Rakoff ruled that Terra (LUNA) and the MIR token are unregistered securities, as argued by the SEC. Recall that the agency sued Terraform Labs in February, alleging that they offered the tokens as securities without registration.
    • Following an earlier ruling that barred him from leaving the U.S. before his sentencing in February, Binance founder Changpeng Zhao made a second appeal to be allowed to depart the country. However, this week, a District Court in Seattle also denied this request.
    • Despite the troubles faced by Zhao and Binance this year, the former saw his net worth appreciate by a massive $25 billion this year due to the green market. In addition, this week, Binance crossed a milestone of 170 million users globally.

    Global regulatory efforts

    • The week also witnessed increased regulatory efforts across the globe. Japan amended an existing crypto legislation to relax end-of-year crypto tax commitments for companies. 
    • The amendment effectively put an end to a requirement demanding companies pay a mark-to-market valuation tax for their cryptocurrency holdings. 
    • Hong Kong declared this week that it would now allow retail investors to procure stablecoins in the region, as long as the issuers of the tokens are fully regulated by the authorities.
    • Shortly after the Central Bank of Nigeria relaxed its ban on cryptocurrency transactions, reports from this week suggested that a group of banks in the country are looking to launch cNGN, a stablecoin pegged 1:1 to the Nigerian naira.
    • In a Dec. 28 release, Indian authorities warned that certain crypto exchanges, including Binance, Huobi, Kraken, KuCoin, Gate.io and MEXC, were violating anti-money laundering provisions in the country. 


    Follow Us on Google News

    [ad_2]

    Wahid Pessarlay

    Source link

  • Major Acquisition: MicroStrategy Grows Bitcoin Reserves By 14K BTC Ahead Of ETF Approval

    Major Acquisition: MicroStrategy Grows Bitcoin Reserves By 14K BTC Ahead Of ETF Approval

    [ad_1]

    MicroStrategy (MSTR), a prominent Bitcoin holding company, has once again expanded its BTC holdings with a substantial purchase of 14,620 Bitcoin, amounting to a staggering $615.7 million. 

    The former CEO of the American business intelligence (BI) firm announced the acquisition, highlighting the company’s continued confidence in Bitcoin’s long-term potential. 

    With the potential approval of Bitcoin spot exchange-traded funds (ETFs) on the horizon, MicroStrategy aims to capitalize on the positive impact on BTC’s price and the company’s profitability in the leading cryptocurrency market.

    MicroStrategy Stock Skyrockets 337%

    According to a CNBC report, MicroStrategy’s stock has experienced a remarkable 337% surge in 2023, making it one of the top gainers among US companies valued at $5 billion or more. 

    This success surpasses the rallies of industry giants like Nvidia and Meta. Unlike its tech peers, MicroStrategy’s appeal to investors stems primarily from its Bitcoin holdings. 

    The 1-day chart shows MSTR’s continuous uptrend. Source: MSTR on TradingView.com

    MicroStrategy’s market capitalization currently stands at $8.5 billion, with a staggering 90% directly tied to its Bitcoin holdings. The company’s stock price closely mirrors the performance of Bitcoin, with significant fluctuations in response to the cryptocurrency’s price movements. 

    Per the report, in 2022, when Bitcoin experienced a 64% decline, MicroStrategy’s stock plummeted by 74%. Despite the substantial gains achieved this year, MicroStrategy shares are still below their peak levels in 2021, during the cryptocurrency’s peak.

    Michael Saylor’s Vision

    MicroStrategy’s decision to invest in Bitcoin dates back to July 2020, when the company recognized the potential of alternative assets, including digital currencies. 

    At that time, MicroStrategy had a market capitalization of around $1.1 billion, primarily driven by its software business, which has been shrinking since 2015. Co-founder Michael Saylor, who was CEO then, saw an opportunity to put the company’s idle cash reserves to work, considering low interest rates and the need for diversification.

    Saylor’s conviction in Bitcoin as a digital form of gold led MicroStrategy to prioritize Bitcoin purchases over equities and precious metals. This strategic move exposed investors to Bitcoin indirectly through MicroStrategy’s stock. 

    Saylor, who transitioned to executive chairman, remains optimistic about Bitcoin’s future, expecting the bull market to continue into the next year. Despite its growing popularity, Saylor emphasized that Bitcoin still represents only a fraction of global capital allocation, with ample room for further growth.

    As of December 27, 2023, MicroStrategy’s latest purchase adds to its already impressive Bitcoin portfolio, bringing the total holdings to 189,150 BTC. 

    The company has invested approximately $5.9 billion, with an average purchase price of $31,168 per Bitcoin. These strategic acquisitions position MicroStrategy as a major player in the crypto space, aligning its interests with the anticipated growth and adoption of Bitcoin.

    Microstrategy
    The daily chart shows BTC’s sideways price action over the past 24 hours. Source: BTCUSTD on TradingView.com

    The current market data shows that Bitcoin is trading at $42,900, reflecting a marginal 0.5% increase over the past 24 hours. The cryptocurrency briefly dipped below its critical support level of $42,000 but has since regained its position.

    The market is anticipating the potential approval of the Bitcoin Spot ETF applications between January 5 and 10, 2024. 

    This development holds significant promise for Bitcoin, as it could drive the cryptocurrency’s price well beyond $50,000, establishing a new yearly high and edging closer to its historical peak.

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Ronaldo Marquez

    Source link

  • Michael Saylor: Spot Bitcoin ETFs a game-changer

    Michael Saylor: Spot Bitcoin ETFs a game-changer

    [ad_1]

    MicroStrategy executive chairman Michael Saylor recently emphasized the potential impact of upcoming spot Bitcoin ETFs on the markets.

    In a Bloomberg TV interview, Saylor asserted that this development could be the most significant on Wall Street in three decades, drawing a parallel with the introduction of the S&P 500 ETF. According to Saylor, mainstream investors have lacked a “high bandwidth” compliant channel for investing in Bitcoin, a gap that the spot Bitcoin ETF is poised to fill.

    “Spot Bitcoin ETFs may be the biggest development on Wall Street in the last 30 years.”

    Michael Saylor

    Saylor anticipates a demand shock for Bitcoin (BTC), driven by the introduction of the spot ETF, followed by a supply shock during April’s halving, reducing daily Bitcoin production from 900 to 450. Despite forecasting a major bull run for Bitcoin in the coming year, Saylor refrained from speculating on specific price levels.

    Addressing concerns about the potential diversion of investor demand from MicroStrategy to a spot ETF, Saylor highlighted MicroStrategy’s distinct position as an operating company capable of using cash flow or “intelligent leverage” to bolster its Bitcoin holdings. Unlike ETFs, MicroStrategy does not charge ownership fees.


    Follow Us on Google News

    [ad_2]

    Bralon Hill

    Source link

  • MicroStrategy's Michael Saylor Calls Bitcoin An Institutional-Grade Asset Destined For $1 Million

    MicroStrategy's Michael Saylor Calls Bitcoin An Institutional-Grade Asset Destined For $1 Million

    [ad_1]

    Microstrategy’s Executive Chairman and Co-founder, Michael Saylor, is one who always uses every opportunity to heap praises on the flagship cryptocurrency Bitcoin. Once again, he didn’t disappoint, as BTC was the center of discussion in his latest media appearance. 

    Bitcoin Going To $1 Million

    In an interview with CNBC, Michael Saylor stated that Bitcoin is going to $1 million if it isn’t going to “zero.” He noted that the “big question” in relation to BTC’s potential was whether or not the digital asset was legitimate. According to him, if Bitcoin is a “legitimate institutional asset,” then everybody is “under-allocated” to it. 

    His comment about Bitcoin possibly hitting $1 million seems to stem from his belief that Bitcoin as an asset is still untapped, as he expects many institutional players to get in on the crypto token. He noted how 99.9% of the world’s capital is currently tied to other global assets like bonds, real estate, stocks, and precious metals. However, expects that to change soon enough.

    That change, he believes, will stem from education about digital assets. From that, Saylor says more and more people will realize that they ought to be allocating more and more of their capital to digital assets. Interestingly, he labeled BTC as a “digital transformation of capital,” alluding to its disruptive nature. 

    These institutional players could well be allocating more of their capital to BTC as early as 2024. The new rule by the Financial Accounting Standards Board (FASB) recently opened the door for firms to include cryptocurrencies like Bitcoin on their balance sheet. As such, we could see other tech firms adopt Microstrategy’s “Bitcoin Strategy.”

    BTC price reclaims $43,000 | Source: BTCUSD on Tradingview.com

    BTC Is Going Foward In 2024

    Saylor also discussed several macro factors that he considers bullish for Bitcoin going into the new year. These factors include the potential approval of a Spot Bitcoin ETF, the loosening of monetary policies, and wider BTC adoption in countries suffering from inflation. 

    He also alluded to the BTC Halving event, which he believes is also bullish for the Bitcoin ecosystem. All these factors form a “confluence of very bullish milestones,” which Saylor projects are going to happen over the next six months.  

    Saylor will undoubtedly be fulfilled when his company’s Bitcoin strategy has panned out as Microstarategy is currently in profit with its Bitcoin acquisitions. The company’s stocks are also flying high as it recently hit a 2-year high, thanks in part to its BTC exposure.

    At the time of writing, BTC is currently trading at around $43,000, up over 4% in the last 24 hours according to data from CoinMarketCap. 

    Featured image from Yahoo Finance, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Scott Matherson

    Source link

  • MicroStrategy’s $4.6 Billion Bitcoin Bet Pays Off, Here’s How Much It’s Worth Now

    MicroStrategy’s $4.6 Billion Bitcoin Bet Pays Off, Here’s How Much It’s Worth Now

    [ad_1]

    The cryptocurrency industry has experienced significant growth in recent weeks with an influx of capital. This influx of capital has forced Bitcoin over various price resistances, with the latest being a brief cross over the $37,000 level. MicroStrategy has emerged as a prominent public company that has successfully capitalized on this price push.

    MicroStrategy’s blockbuster bet on the world’s largest cryptocurrency has certainly paid off so far. The company has posted over $1 billion in unrealized profit thanks to Bitcoin’s 36% increase from $26,750 since October 13. Shares of MicroStrategy have also risen simultaneously, soaring more than 55% since the same time period.

    MicroStrategy’s Bold Bitcoin Bet Paying Off

    MicroStrategy started buying in Bitcoin in 2020 but the latest acquisition came in October, amidst the influx of money into Bitcoin, where the company announced it had acquired an additional 155 BTC for $5.3 million. 

    MicroStrategy now owns a total of 158,245 BTC, acquired at an average total value of $4.68 billion. At BTC’s current price of around $36,500, MicroStrategy’s BTC investment is now worth over $5.77 billion, representing an unrealized 26% return of $1.1 billion in around three years.

    The company’s investment in Bitcoin has also paid off on the back end of its stock price, as it has outperformed many stocks and assets since the adoption of its Bitcoin strategy. The share price has shot up 242% from its open price of $145 at the beginning of the year. 

    At the time of writing, MicroStrategy share is trading at $497, and Michael Saylor noted that this growth has been largely in part to its innovative Bitcoin strategy.

    BTC resumes uptrend | Source: BTCUSD on Tradingview.com

    BTC Putting Microstrategy On The Map

    MicroStrategy’s Michael Saylor has been an outspoken proponent of Bitcoin. Saylor’s belief in Bitcoin spearheaded MicroStrategy’s investment in the asset, and a cursory look through his social media page on X shows various posts promoting Bitcoin. 

    Saylor recently stated, in an interview with Fox Business, that MicroStrategy’s BTC investments were part of a well-planned strategy to rival tech giants like Google, Microsoft, and Apple. 

    “What we did in August of 2020 was recognize that there’s no way we’re going to outgrow Google and Microsoft and Apple Computer as a mid-sized software company. We realized Bitcoin is like a high-tech dominant digital network growing at 40% or 50% a year, and so we bought it,” he said in the interview.

    Saylor also expects the demand for BTC to double in the next 12 months amidst its next halving and the approvals of spot Bitcoin ETFs in the US. Ultimately, he believes that the price of BTC will eventually reach $5 million. 

    MicroStrategy isn’t the only company with Bitcoin on its balance sheet. Public companies now own a total of 239,494 BTC, representing 1.23% of the total supply. Marathon Digital, Galaxy Digital, and Tesla are a few of these companies, holding 13,286, 12,545, and 10,500 BTC, respectively.

    Featured image from MicroStrategy, chart from Tradingview.com

    [ad_2]

    Scott Matherson

    Source link

  • Michael Saylor’s Bold Forecast: Bitcoin Demand Set To Soar 10-Fold

    Michael Saylor’s Bold Forecast: Bitcoin Demand Set To Soar 10-Fold

    [ad_1]

    Michael Saylor, the executive chairman and co-founder of MicroStrategy Inc, anticipates a substantial surge in Bitcoin’s value following the US Securities and Exchange Commission’s approval of a spot ETF, and a subsequent surge in demand for the leading cryptocurrency.

    Renowned as a Bitcoin advocate, Saylor reaffirmed his belief in the unparalleled potential for Bitcoin, foreseeing a tenfold upsurge in its value.

    This week, Bitcoin hovered near the $36,000 mark, narrowly missing it before tumbling back to $34,300. The abrupt correction followed a nearly 25% climb in the last month, prompting some traders to seize profits and market participants to re-evaluate the driving forces behind the rally.

    Resilience Of Bitcoin And SEC ETF Prospects

    Although the nearly 5% intraday retreat signaled what some analysts call a “cooling-off stage”, several market observers maintain a positive outlook on the crypto.

    Despite the volatility, Saylor remained unfazed by the erratic price action. On November 1, MicroStrategy’s announcement of purchasing 155 Bitcoins for $5.3 million showcased an unwavering commitment to the cryptocurrency, underscoring the resilience of those who continually support Bitcoin through market fluctuations and price swings.

    At present, the SEC is in the process of examining many applications for a Bitcoin ETF following a prolonged period of delay. According to numerous analysts, it is widely speculated that an approval may be forthcoming as early as January 2024.

    Image: Screen grab from CNBC

    During his discussion with CNBC, Saylor conveyed that a yearly $12 billion of natural selling is anticipated to transform into $6 billion annually, aligning with the escalating demand for bitcoin driven by spot bitcoin ETFs.

    He underlined the prevalent bullish outlook, emphasizing the upcoming 12-month period’s potential as a result of the expected rise in demand and a concurrent reduction in supply, “and this is fairly unprecedented in the history of Wall Street,” he said.

    Bitcoin currently trading at $34,835 territory. Chart: TradingView.com

    Key Factors Driving Saylor’s Conviction In Crypto’s Future

    Saylor’s conviction in the cryptocurrency is further derived from the convergence of several forthcoming Bitcoin-related developments throughout the upcoming year. Firstly, it is important to note that Bitcoin is scheduled to undergo a “halving” event in April 2024.

    This event will result in a 50% reduction in Bitcoin mining incentives, so significantly decreasing the quantity of Bitcoin that is expected to be introduced into the market by miners.

    With a valuation of $34,715 at the time of writing, based on figures by CoinMarketCap, and an impressive 24-hour trading volume of nearly $20 billion, Bitcoin is holding its ground and indicating a flurry of activity in the cryptocurrency space.

    Image: Shutterstock

    With a measly 2.1% decline, Bitcoin is still the market leader with a $678 billion market value, demonstrating its unwavering dominance. This developing narrative is fueling conversations about scarcity and value as the circulation supply of Bitcoin gets closer to the 19 million mark, which is close to its finite cap of 21 million.

    Meanwhile, a significant breakthrough occurred when Bernstein, an investment research firm that had previously expressed doubts about Bitcoin’s prospects, recently issued an optimistic prognosis. They projected that by 2025, the cryptocurrency may be worth $150,000, if there was a real chance that a spot Bitcoin ETF would acquire approval. It’s important to remember that Bitcoin reached its highest point in November 2021, briefly surpassing $69,000.

    Featured image from iStock

    [ad_2]

    Yuna Rin

    Source link

  • Saylor’s MicroStrategy Posts Loss After Writing Down Bitcoin Holdings

    Saylor’s MicroStrategy Posts Loss After Writing Down Bitcoin Holdings

    [ad_1]

    (Bloomberg) — MicroStrategy Inc., the enterprise-software maker that is the largest publicly-traded holder of Bitcoin, posted a third-quarter loss after taking a writedown because of a decline in the value of the cryptocurrency.

    Most Read from Bloomberg

    The Tysons Corner, Virginia-based company’s net loss widened to $143.4 million, or $10.09 a share, from $27 million, or $2.39, in the year-ago period. Revenue from the software business rose about 3% to $129.5 million, above the average forecast of $125.8 million of analysts surveyed by Bloomberg.

    MicroStrategy, which has been buying Bitcoin in bulk since 2020 as a hedge against inflation, has been forced to take massive writedowns over the years following downturns in the volatile digital currency. Bitcoin has increased about 30% since falling 11% in the three months ended Sept. 30.

    Co-founder Michael Saylor has turned the once struggling software company into a Bitcoin proxy for equity investors by accumulating more than $5.5 billion of the cryptocurrency. Saylor gave up his chief executive officer title last year, saying he would focus on the Bitcoin aspect of the company’s dual strategy.

    The $33.6 million impairment loss for the quarter brings the cumulative total to over $2.2 billion, meaning the company has written off almost half the Bitcoin purchases it has made, according to Bloomberg calculations. MicroStrategy as of Oct. 31 held more than 158,000 Bitcoin at a total cost of $4.69 billion, or $29,586 each, according to a statement.

    In a post-earnings conference call, Chief Financial Officer Andrew Kang said the company plans to purchase more Bitcoin.

    Investors and analysts are beginning to debate whether MicroStrategy’s shares will continue to command a Bitcoin-related premium, given that the US Securities and Exchange Commission seems likely to approve ETFs that invest directly in Bitcoin after a key court loss earlier this year.

    Since the middle of 2020, MicroStrategy shares have more than tripled as Bitcoin surged in value. The benchmark Standard & Poor’s 500 Index gained about 40% during the same period.

    ETF Competition

    Saylor in the conference call pointed to advantages of investing in MicroStrategy stock instead of a US spot Bitcoin ETF.

    “There will be fees to invest in a spot ETF,” Saylor said. “The ability to get Bitcoin exposure and not get charged a fee is another plus for us.”

    Saylor said spot ETFs would “grow the market dramatically” and be “an onramp for capital on Wall Street to come into the Bitcoin ecosystem.”

    Since the quarter ended, MicroStrategy’s Bitcoin holdings have risen in value by around $1.2 billion, which was about the company’s market capitalization when it started buying crypto in 2020.

    Saylor said he will sell some of his MicroStrategy shares between January and April of next year in connection with expiring options.

    –With assistance from Tom Contiliano.

    (Updates with comments from executives from the sixth paragraph.)

    Most Read from Bloomberg Businessweek

    ©2023 Bloomberg L.P.

    [ad_2]

    Source link