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PLUS: MicroStrategy at it again
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GM to all you crypto nuts. Crypto Nutshell #438 goin’ all in… 🎲 🥜
We're the crypto newsletter that's more thrilling than Jason Bourne uncovering his identity... 🕵️♂️🗝️
What we’ve cooked up for you today…
🏦 This is getting out of hand
🕊️ Bitcoin is the only escape
📈 Here we go
💰 And more…
MARKET WATCH ⚖️
Prices as at 4:10am ET
Only the top 20 coins measured by market cap feature in this section
THIS IS GETTING OUT OF HAND 🏦
BREAKING: Michael Saylor's MicroStrategy plans another $700M convertible note issuance
Just 4 days ago MicroStrategy announced they purchased $1.1 billion worth of Bitcoin.
And today they announced plans to raise an additional $700 million.
Leave some Bitcoin for the rest of us Michael…
Here’s what the press release says:
“MicroStrategy intends to use the net proceeds from this offering to redeem all $500 million outstanding aggregate principal amount of MicroStrategy’s 6.125% Senior Secured Notes due 2028 and to use any balance of the net proceeds to acquire additional bitcoin and for general corporate purposes.”
MicroStrategy is raising this money to pay off $500 million in exisiting debt, with the difference being used to purchase more Bitcoin. (Obviously…)
(Essentially debt refinancing - replacing existing debt with new debt at more favourable terms)
This is MicroStrategy’s third debt offering of 2024:
March: $700 million
June: $500 million
September: $700 million
As always, Bitcoin skeptic Peter Schiff popped up to criticise this move:
As of June 2024, MicroStrategy’s total debt is at $3.9 billion.
But…
They’re also sitting on $4.8 billion in unrealized profit on their Bitcoin holdings.
Sounds like the Bitcoin strategic reserve strategy is working pretty well to us…
When will other CEO’s wake up?
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BITCOIN IS THE ONLY ESCAPE 🕊️
Bitcoin is the only escape valve left.
It will end the year at $100,000.
That’s the latest out from Jack Mallers.
Jack Mallers is an O.G Bitcoiner and CEO of Strike, a Bitcoin investment & payments company.
In his latest interview, he dropped his outlook for the end of this year:
“I think Bitcoin ends the year at around or above $100,000 per coin.”
The reasoning behind Jack’s prediction is simple:
U.S debt is out of control.
The only way to afford interest payments on that debt is by creating asset bubbles.
They do this by cutting interest rates & printing more money.
“If you look at how the US actually finances its interest payments and pays down a lot of this debt, it's through asset bubbles.”
When interest rates are cut and more money is printed, there’s one asset that performs better than anything else.
“I think Bitcoin is the only smoke alarm left. It's the only escape valve left. It's the only truly 24/7 global, free market. What Bitcoin does phenomenally better than anything else in the world is tell you the liquidity situation.”
With a 50+ basis point decrease now the most likely option for tomorrow’s FOMC meeting, the interest rate cutting cycle is about to begin.
Bitcoin shines during interest rate cutting cycles.
HERE WE GO 📈
After two weeks of outflows totalling $1.2 billion, inflows are back!
Last week, Digital asset funds saw net inflows of $436 million.
However, ETF trading volume came in at $8 billion for the week.
CoinShares notes that this is much lower than the weekly average of $14.2 billion this year.
As always, Bitcoin was the focus seeing $436 million in inflows.
This ended Bitcoin’s 10 day outflow streak which totalled $1.18 billion.
Solana also saw it’s fourth week of inflows coming in at $3.8 million.
And…
Ethereum had another rough week, experiencing $19 million in outflows.
Short-Bitcoin also saw net outflows of $8.5 million, hinting that investor sentiment has now flipped bullish.
The US was also the focus last week, seeing $416 million in inflows.
Switzerland, Germany and Brazil all saw notable inflows of $27.1m, $10.6m & $2.8m respectively.
Whereas Canada and Sweden experienced outflows of $17.9m and $4.6m respectively.
CoinShares believes this surge in inflows towards the end of the week was driven by the markets expectations of a 0.50% rate cut.
According to CME FedWatch, there’s now a 62% chance that we see a 0.50% rate cut on September 18th.
Just one week ago the markets had a 0.50% rate cut at a 30% chance.
Cheap capital is about to flood the market…
CRACKING CRYPTO 🥜
USDC positions to be native stablecoin on Sony Soneium blockchain. Stablecoin issuer Circle is collaborating with Sony to bring its USDC to Ethereum Layer-2 network Soneium.
Kraken denies SEC claims, argues digital assets aren’t securities. Kraken refutes SEC allegations that it offered unregistered securities, asserting that digital assets like ADA and ALGO don’t meet the Howey test criteria.
Ethereum stakers see 7DMA revenue fall as on-chain activity declines 60% since March. The 7-day moving average (7DMA) for daily staker revenue on Ethereum recently fell to a six-month low.
Ether-Bitcoin Ratio Drops to Lowest Since April 2021. Here’s Why It Matters. Analysts suggest the ETH/BTC ratio might drop further, potentially to the 0.02-0.03 range, unless there's a significant change in investor sentiment or regulatory clarity that might favor riskier assets.
WHAT WE’RE READING 📚
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Your Next Breakthrough (link) - Personal growth with Mark Manson
The Neuron (link) - AI trends and tools to keep you ahead
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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”)
When was the first Bitcoin Halving event? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: B) November 2012 🥳
The first halving took place November 20212. The mining reward was reduced from 50 to 25 BTC per block
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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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