Morning DD amigos! Bitcoin price achieved a new all-time high this week, with altcoin markets remaining upbeat. And here we are, back with a new issue on the freshest news of the market😉
Strategy’s Bitcoin Strategy Is No BS💸
When Strategy (earlier MicroStrategy) Executive Chairman Michael Saylor did a 180, going from a hater to one of the hottest Bitcoin advocates there is (presently), little did we know that he’d create an entirely new brand and a business model out of holding Bitcoin on the company’s balance sheet.
The crypto world never ceases to surprise us!
What you see above is not just numbers, but an entire corporate revenue mechanism powered by Bitcoin alone!
With 40 days left for Q2 end, Strategy’s “Bitcoin flywheel” clocked:
- 4.8% BTC yield
- $2.7 billion worth of profits just from holding Bitcoin
For Strategy, “stacking sats” is an understatement.
With $60.75 billion worth of Bitcoin on their corporate balance sheet, the Michael Saylor-led firm’s biggest flex isn’t future BTC price rallies (well, it’s one of the biggest, no lies there).
It’s “yield.” Massive, pure, crypto-native yield.
For Strategy, the “strategy” is simple:
Raise debt → Buy BTC → Stake/Earn yield → Book gains → Repeat → Moon🚀
If Saylor were to write a book, it would be aptly titled – “How to Cook a Well-Done Steak Stake”
It would prove to be a handy book for Metaplanet, Semler Scientific (or Tesla, for that matter), and other corporate heavyweights amassing BTC by the thousands to add to their official treasuries.
And for you too, if you want to have a slice of the Bitcoin yield pie😊
JP Morgan to Clients – “Yes, You Can Buy Bitcoin, But…”
They won’t take custody of Bitcoin holdings.
“I defend your right to buy bitcoin.”, JP Morgan CEO and long-time Bitcoin critic Jamie Dimon said on Monday.
While respectfully ignoring your thoughts on Bitcoin, Mr. Dimon, we approve your latest move.
Here’s the catch. We saw this coming already. Why, you ask?
- JP Morgan is already tracking Bitcoin’s hashrate and network fundamentals
- The Jamie Dimon-led firm is going big on RWAs with Ondo and Chainlink
- Kinexys, JP Morgan’s blockchain arm, is knee-deep in developing blockchain-powered payment rails
Bitcoin’s “magic internet money” days are long gone. It’s now an emerging “macro asset class”.
You know what that means for your own BTC bags😎
HODLing is the Way to Go, Says Data🥳
Bitcoiners are in the mood to HODL. We’ve got data to prove it.
Let’s decipher the numbers in the above chart.
Spot buys for Bitcoin on Coinbase have ticked up since mid-April. The exchange clocked $45 million worth of BTC buys – a much larger figure than sells. Whales are lapping up all available BTC. And, when the numbers are this big, the intention is not short-term profit taking, it’s long-term holding.
Sell pressure on Binance drastically reduced from $71 million to $9 million during the same period.
And Bitcoin’s supply on exchanges has followed a trend of gradual depletion over the last 5 years. Data shows that BTC supply on exchanges has gone down to 7.1% for the first time since November 2018.
And since the last 5 years, 1.7 million fewer Bitcoins are available on crypto exchanges globally.
This signals accumulation. Folks and institutions with deep pockets are gradually realizing how scarcity will play a role in making Bitcoin a valuable asset. With just a little over a million coins left to be mined, and corporations, countries, and government reserves racing to fill up their coffers, a face-melting rally (in the next few months) looks imminent.
The accumulation even left an imprint on BTC/USDT weekly charts. After bottoming at $78,000 in the first week of April, Bitcoin prices clocked a new all $109,424 on Wednesday.
A Golden Cross (which is a sure-shot technical indicator of impending rallies) has already shown up with BTC/USDT markets still maintaining strength before explosively heating up.
Looks like this rally is here to stay. But, to what extent will the price momentum continue to barrel upwards remains to be seen.
Hope you bought the last dip. Not the one for your fries…
Circle Going In Circles: IPO or Acquisition😵💫
USDC stablecoin company, Circle, seems to be going the full-blown IPO way with a $5 billion valuation.
But, it also wants to be “acquired”. Talks are on with Coinbase and Ripple, with Circle asking for, guess the number? $5 billion.
Ripple’s offer got rejected as “too low”. Also, we think Circle has a problem with the XRP-issuing company pushing its native stablecoin, RLUSD, which is competition for the USDC issuer.
So, will it work out with Coinbase then? We honestly can’t say much at this point in time.
What we do know is that Coinbase and Circle have been stablecoin buddies for quite a long time now, and the USDC issuer could consider selling to Coinbase.
A banker close to the deal reportedly told Fortune:
“If Coinbase wanted to buy them, Circle would sell in a heartbeat.”
That’s because:
- Coinbase has had an equity stake in Circle since 2023.
- Coinbase earns nearly $900 million annually from USDC distribution.
- Circle pulled in $1.68 billion in revenue in 2024, mostly from interest income.
- Coinbase earns 100% of the residual revenue from reserves backing USDC (if it is stored in Coinbase wallets)
- Coinbase majorly controls Circle’s operations (as per the current arrangement)
- And, partially controls Circle’s intellectual property in case the USDC issuer were to go insolvent.
- Circle ended 2024 with $45.8 billion in assets and growing stablecoin adoption through USDC, USYC, and EURC.
So, will it be an IPO or an acquisition? Only time will tell.
Whatever happens, the deal will have long-term, strong, and significant effects on the future of finance:
- For starters, the line between DeFi and TradFi will gradually diminish.
- DeFi will shine with institutional credibility and a regulatory approach.
Overall, with the US Senate advancing the GENIUS Act stablecoin regulation bill on a bipartisan vote, stablecoins are set to become the nerve center of finance in the US. The US is consistently maintaining its stance to dominate all things crypto.
It is interesting to note that the US’ stance is not about leading “stablecoin tech”. It’s about establishing geopolitical supremacy.
We would like to end this one by saying that crypto now has a giant slice of the big boys club’s attention pie (read top 1%). So, it’s only a matter of time before bagholders globally land a landmark opportunity to create generational wealth.
It’s time. We hope you are strapped in tight for the ride to the moon🚀
