GM to all of you nutcases. It’s Crypto Nutshell #938 bringin‘ the news… 🥜

We're the crypto newsletter that's more signal-sensitive than two agents following the humming briefcase after everyone else files it as a weather balloon… 👽📡

What we’ve cooked up for you today…

What’s in the Crypto Nutshell Portfolio?

BREAKING: Strategy books $8.2 billion Q2 loss on bitcoin price decline

Strategy lost $8.2 billion last quarter, and its shares went up 5%.

The loss is paper…

An $8.32 billion writedown on bitcoin it still owns, under accounting rules that mark the stack to market every quarter whether it sells or not.

Same coins, lower price.

The identical rule handed it a $10 billion profit this time last year.

Strategy hasn't bought a single bitcoin in five weeks now.

The model only ever worked while MSTR traded above the value of the coins behind it.

Sell stock at a premium, buy bitcoin with the proceeds, and every existing shareholder ends up owning more bitcoin per share than they did before.

That premium has gone.

Its own mNAV measure (share price against the bitcoin backing each share) sits near 1.02, close enough to level.

The company raised $17 billion selling stock this year, and for most of it the old routine held, with holdings up 25% since January.

Where the money goes has changed.

The dollar reserve is up to $3.75 billion, enough to cover preferred dividends and interest for more than two years.

$1.5 billion of convertible notes have been bought back at an 8% discount, cutting that debt by 18%.

And rather than buying bitcoin to fund the dividends, it's selling a little, about $218 million worth so far this year.

Saylor calls the new thing "Digital Credit."

In practice it's a credit business defending its own liabilities…

Back in June, selling 32 coins was enough to spook the market.

This quarter it sold $218 million worth and the stock rallied on the print.

Bitcoin's other big bid thinned at the same time.

Spot bitcoin ETFs took in $205 million across the whole of July, their smallest month since launch, and ether's funds pulled in more than that.

Two channels that absorbed most of the loose supply for two years both went quiet in the same month, and bitcoin is sitting near $65,000 anyway.

That cuts both ways.

Nothing broke when the biggest buyer walked off, but nothing is standing under the next drop either.

AI is moving from experiment… to essential.

Every major industry is integrating it.
Every major company is investing in it.

By late 2025, AI was already an $800B market — growing at a pace that could push it well beyond $1 trillion in the years ahead.

Cloud infrastructure is scaling fast.
AI-enabled devices are multiplying.
Automation is becoming standard.

But here’s the real question…

When trillions flow into this transformation — which stocks stand to benefit most?

Our new report reveals 10 AI stocks positioned across the backbone of this shift — from the companies powering the infrastructure… to those embedding intelligence into everyday systems.

If you want exposure to one of the defining growth trends of this decade, start here.

Download the Report Now

In his latest video update, Raoul Pal argued that most of the market is valuing companies against a customer base that's about to change entirely.

Pal is a former Goldman Sachs macro trader and founder of Real Vision.

That assumption is the whole problem.

A dashboard has no value to an agent. Neither does a seat licence or a login screen. Strip those away and the entire business model underneath legacy SaaS gets gutted.

He's blunt about the near-term trap too. Some of these companies are posting better profitability right now by cutting costs with AI. Pal calls that "incredibly dangerous" - margin expansion right before the customer disappears.

Even the hardware boom has a clock on it. Roughly another year of data centre build-out, then efficiency gains and edge compute catch up, and it turns cyclical.

So where does he point instead?

The rails agents transact on. Which is exactly where crypto sits.

Most people aren't positioned for it. 🤖

Today we’ll be taking a look at the amount of Bitcoin available for sale on exchanges.

Here’s how to interpret this metric:

2.71 million BTC on exchanges. Unchanged on two weeks ago.

After last fortnight's roll off the 2.722 million top, the balance hasn't moved.

That splits it from ether again.

ETH shed another 190,000 coins to a fresh low while Bitcoin's float held steady, so the two charts that lined up last edition have parted company.

The year-long trend is intact, from around 2.9 million last August to 2.71 million now, and one flat fortnight doesn't change that.

Bitcoin's float stopped tightening this print, so the supply squeeze we've been tracking on both charts is now running on ether alone. 💪

Bitcoin Quantum Threat Inches Closer as IBM Claims ‘Trusted Quantum Advantage’. IBM’s advance moves quantum computing closer to challenging current cryptography, although it isn’t an immediate break of Bitcoin.

Global banks test tokenized money in $1 million BIS pilot. Twenty-eight banks, including JPMorgan, Citi and UBS, moved real money across borders using blockchain settlement.

Aviva Investors launches tokenized fund after Central Bank of Ireland approval. The XRPL-based share class provides blockchain access to a regulated U.S. dollar liquidity fund while retaining traditional custody.

Aave proposes reserve deprecations affecting $98 million in supplied assets. The proposal would retire weak reserve markets as Aave reassesses low-usage deployments.

Want to get even smarter? Check these out.

p.s. all completely FREE (one click subscribe link)

Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)

Because what would the crypto world be without its share of memes?

Trivia Answer: 2008 🥳

Satoshi Nakamoto published the Bitcoin white paper on 31 October 2008. The network launched with the genesis block in January 2009.

Advertise with Crypto Nutshell to get your product or brand in front of the crème de la crème of crypto investors. Crypto Nutshell readers are high-income earners who are always looking for unique or interesting offers.

Get in touch today.😎

We read every comment submitted in this poll and love to hear what you guys have to say. 😁 (bonus points for suggestions 🍪)

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.