MicroStrategy Acquires Additional $10 Million in Bitcoin at Average Price of $48,888 | Goldman Sachs Exploring Potential Bitcoin ETF
Top stories and news you should know in the bitcoin, crypto, and decentralized markets...
Michael Saylor on Friday morning took to Twitter announcing his company’s additional $10M in BTC at an average price of $48,888 after announcing on Monday MicroStrategy’s purchase of another 328 Bitcoins in cash for $15M
The company now sits on 91,064 bitcoins that were acquired at an aggregate purchase price of $2.196 billion and an average purchase price of approximately $24,119 per bitcoin, inclusive of fees and expenses.
Drilling Down Deeper
Well, he’s done it again!
Michael Saylor and MicroStrategy are showing the entire market that their play on bitcoin is “All gas, no brakes.” Tapping back into the well once more to draw even more bitcoin onto the company’s balance sheet. These additional purchases are extending their lead among publicly-traded companies holding the world’s leading crypto asset, and the MicroStrategy’s holdings are almost than that twice that of Tesla’s 48,000 at the moment.
The market reacted positively to pre-market news and trended higher as the American trading session progressed towards the closing bell on Friday. As they buy and accumulate more bitcoin, it is increasing their first mover advantage over the other corporations still moving and working to incorporate bitcoin and crypto into their balance sheets as well as business models. MicroStrategy’s value of the bitcoin on its balance sheet is over $4.361B ($2.196B cost basis) and its market capitalization is over $5.332B, meaning its BTC accounts for over than 80% of the company’s value.
Seeing their success, it seems that all of the traditional financial institutions have begun embracing bitcoin and crypto assets. Noting that the stock market took a beat down as 10-year treasury yields rose over the week, bitcoin withstood the macro conditions better than Ethereum and much of the crypto asset market. Year-to-date, bitcoin is performing orders of magnitude better up about 67% while crushing stocks that are flat, bonds that are down about five percent, and gold that’s down about ten percent so far.
This trend seems likely to continue, and as more investors begin pricing the world in bitcoin rather than dollars they will notice that over the long-term almost everything is approaching zero. According to our thesis that is growing widening acceptance, the catalyst to this massive growth is largely attributed to the creation of easy money from the Federal Reserve and the United States of America. They cannot easily begin winding down the assets on their balance sheet or decrease the federal deficit, so they must create a debt spiral dollar bubble under our noses as the people meme the markets into irrationally exuberant territory given the shape of the underlying economy.
MicroStrategy is leading the charge to actually put skin in the game with bitcoin and teach more how capture its potential as a hedge or insurance policy against soft money being the reserve currency of the internet. At the very least, bitcoin and ether will be the Amazon and Apple of the crypto asset industry that saw over 80% drawdowns too in the late 1990’s similar to BTC and ETH in the late 2010’s. Once the wider market wakes up to the fact of bitcoin’s staying power as hard, digital money and the potential super cycle ahead of it posing almost unimaginable growth as an investment, then it will be off to the races for them to start stacking their own bitcoin.
Remember, it’s still the early innings.
News You Should Know
Goldman Sachs Exploring Potential Bitcoin ETF
After making news of restarting its cryptocurrency trading desk on Monday, a “source familiar” revealed that the bank is also exploring the potential for a bitcoin exchange-traded-fund and has issued a request to explore digital asset custody. This news with more like it has been a big factor that many are speculating is causing the reversal in premium on the Grayscale Bitcoin Trust…
SEC Chair Nominee, Gary Gensler is Positive on Bitcoin & Crypto
At the Senate Banking Committee on Tuesday, Gary Gensler said that bitcoin and and crypto described them as “catalysts for change.” Though, while praising their innovative thinking he believes they raise new issues surrounding investor protections that will need to be attended to not showing much of a change from prior administrations, and he has gone on the record in 2018 saying there is “strong case” that crypto assets like XRP and ETH may have likely violated securities laws which diverges in the case for Ethereum from Clayton’s view…
Bitcoin Bull Run is Still in the Early Stages, Key On-Chain Indicator Shows
Despite the recent pullback under $50,000 in bitcoin, many “whales” that are holding large amounts have shown in the on-chain analysis to have been accumulating in the face of a minor price correction as the global markets pulled back seeing ripples coming out of the credit markets. The indicator that is used by the cryptocurrency analyst in the article assesses the confidence of long-term holders relative to the price of the native coin at any given point in time, and it suggests that bitcoin might have considerable runway before the “reserve risk” might peak showing it nearing a macro top…
CRYPTO ASSET MARKET
Total Market Capitalization = $1.44T (over 8,700 cryptocurrencies)
BTC Dominance = 60.7% & ETH Dominance = 11.7%
Last Close = $48,800 (as of Mar. 5, 2021)
Market Capitalization = $910.42B
Last Close = $1,535 (as of Mar. 5, 2021)
Market Capitalization = $176.03B
Bitcoin has made some progress over the week after outperforming its peers in its fifth consecutive month of positive returns, excluding Cardano and Polkadot, and chatter across social media suggests that the price action may be coiling for another leg up. Ethereum has struggled to hold onto its strong gains made in February despite the launch of ether futures on the CME and the rollout of the controversial EIP-1559 that is set to go live starting in July. Crypto assets have taken a backseat to non-fungible tokens (NFTs) recently with high profile investors like Gary Vaynerchuk and Mark Cuban being outspoken about their attractiveness and promoting high-profile auctions that are attracting considerable attention from players in the traditional art and rare collectible marketplace. Corporate adoption of Bitcoin acknowledging its supremacy in the crypto asset market by Ark Invest, BNY Mellon, Mastercard, MicroStrategy, Square, Tesla as well as support from the City of Miami’s Mayor and Guggenheim CIO have established BTC as the new gold standard to protect against rising inflation and an uncertain future in fiscal and monetary policymaking. The growth is undeniable and suggests that there is more upside with an abundance of positive developments and promising news that bitcoin adoption is growing among corporations, investment and insurance companies, and individuals seeking a secure and stable store-of-wealth to carry into the future that is insulated from fiat currency debasement causing a loss in purchasing power.
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