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- 🥜 Just the beginning
🥜 Just the beginning
PLUS: Saylor onboarding Microsoft?
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What we’ve cooked up for you today…
🏦 Saylor to help Microsoft
🛤️ Just the beginning…
📉 HODLer breakdown
💰 And more…
Prices as at 2:05am ET
SAYLOR TO HELP MICROSOFT 🏦
BREAKING: Microsoft Could Make 'Next Trillion Dollars' With Bitcoin, Says Michael Saylor
On Thursday last week, some massive news dropped surrounding Microsoft.
In case you missed it, here’s all you need to know:
On December 10, Microsoft shareholders will be voting on whether or not the tech giant should invest into Bitcoin as a treasury reserve asset.
Microsoft adopting Bitcoin would be insane…
Michael Saylor even Tweeted at Microsoft CEO Satya Nadella offering to help:
Funnily enough, MicroStrategy is mentioned in Microsofts letter to shareholders regarding this proposal:
“Corporations that invest their assets wisely can, and often do, increase shareholder value more than more profitable businesses that don’t. Therefore, corporations have a fiduciary duty to maximize shareholder value not only by working to increase profits, but also by working to protect these profits from debasement.”
Continuing on, the letter explains:
“Microstrategy - which, like Microsoft, is a technology company, but unlike Microsoft holds Bitcoin on its balance sheet - has had its stock outperform Microsoft stock this year by 313% despite doing only a fraction of the business that Microsoft has.”
Saylor often posts charts to X that highlight MicroStrategy’s outperformance, but check these two out.
Since adopting a Bitcoin strategy in August 2020, MicroStrategy has outperformed the entire S&P 500.
That’s crazy.
But here’s what makes what Saylor and MicroStrategy did even more impressive…
Before 2020, MicroStrategy was essentially a “zombie” company.
It’s revenues were barely growing and it’s stock price was basically the same for over 10 years.
Something needed to change…
Bitcoin reignited MicroStrategy into the insane out-performer it is today.
And now other tech giants are starting to take note…
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JUST THE BEGINNING… 🛤️
The Bitcoin ETFs broke essentially every record possible.
So far they’ve brought in over $20 billion of new capital to Bitcoin.
Together, the ETFs own a total of ~970,000 Bitcoin.
By the end of this year, this number will most likely be over 1 million. 🤯
But, this is just the beginning.
The Bitcoin ETFs are undeniably the most successful ETF launch in all of history.
A good comparison is the launch of the gold ETFs in 2004. In their first year the gold ETFs brought in ~$3 billion dollars.
Even when accounting for inflation, this only equates to ~$4.92 billion in 2024.
This doesn’t even compare to Bitcoin's ~$20 billion over it’s first 10 months.
But here’s the crazy part: This is just the start.
Pointing this out was Bitwise, who currently have the 5th largest Bitcoin ETF:
You see, the way ETFs tend to work is that they build up flows over time.
Usually over years.
Which means we’ve seen nothing yet.
Another way to look at this is the price of gold after the gold ETFs went live:
The gold ETFs kicked off an 8-year bull run for gold, as ETF flows continued to build year after year.
Conclusion?
We have a lot to look forward to. 😎
HODLER BREAKDOWN 📉
Today we’ll be taking a look at the Long / Short-Term Holder Threshold.
Here’s how this metric works:
🔴 Short-Term Holders (STHs): coins that have been held for less than 155 days
🔵 Long-Term Holders (LTHs): coins that have been held for more than 155 days
🟥 Short-Term Holder Cost Basis: all coins purchased in this price range are STHs
🟦 Long-Term Holder Cost Basis: all coins purchased in this price range are LTHs
This metric is extremely powerful as we can see exactly what price STHs and LTHs purchased Bitcoin at. 🔎
The LTH / STH threshold is at 26th May 2024, when Bitcoin was ~$68,500. (We’re basically in the exact same spot today…)
All coins purchased before this date are classified as LTHs.
All coins purchased after this date are classified as STHs.
Today there is currently 14,046,465 Bitcoin in the hands of LTHs. (71.04% of the circulating supply) 💪
Whereas the amount of coins held by STHs is only 2,749,344. (13.90% of the circulating supply)
And if you can remember back to a month ago… (the last time we looked at this metric)
The amount of LTHs began to decrease…
Well, we mentioned that this wasn’t anything to worry about, as it was only a minor decrease and appeared to be bottoming out.
And as you can see from the zoomed in chart below, we were right.
Since then, the amount of LTHs has actually began to increase. With the amount of STHs also decreasing as a result.
A tell-tale sign of a market top is a HUGE sell-off from LTHs.
So far, we’re still waiting for that to happen…
CRACKING CRYPTO 🥜
UK central bank leader reassures cash's place with rising Britcoin. Bank of England Governor Andrew Bailey believes there is a good case for wholesale CBDCs but is more cautious of retail CBDCs.
Netherlands Starts Consulting on Crypto Tax Reporting Bill. The bill would require crypto services to share their users data with tax authorities.
Marc Andreesen shoutouts help AI-powered VC fund ai16z to nearly $100 million market cap. The fund’s market cap has since declined to about $50 million, though volatility remains high.
Base one-day stablecoin transfer volume outranks all other chains for first time. 30% of all stablecoin volume took place on Base, a higher proportion than typical leaders Ethereum, Solana, and Tron.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
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Raremints (link) - Daily crypto news
Bitcoin Breakdown (link) - Twice weekly Bitcoin news
Crypto Pragmatist (link) - Actionable alpha 3x a week
The Hustle (link) - Get Smarter on Business and Tech
Your Next Breakthrough (link) - Personal growth with Mark Manson
The Neuron (link) - AI trends and tools to keep you ahead
CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
What is the maximum amount of Ethereum that can ever exist? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) Infinite 🥳
Unlike Bitcoin, Ethereum doesn’t have a supply cap.
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
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