Markets
I Bought MicroStrategy (MSTR) Stock For No Real Reason
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4 hours agoon
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adminThe price of MicroStrategy stock surging above $200, the MSTR bulls were out in force last week, insufferably posting about how Michael Saylor’s tech firm, a once dead tech company from the dot-com era, will outperform everything again this cycle.
Look, I’m not going to even start parsing the hokum. You can follow BitPaine, Dan Hillery, or one of the hundreds of Bitcoin X accounts which now comprise the MSTR bull twitterverse.
There’s videos, threads, and of course, a lot of people who are irresponsibly long…
But the general gist is this:
- Michael Saylor’s has decided to buy over 200,000 BTC, and to keep buying Bitcoin until the fiat system collapses. He will continue leveraging cheap debt to do this, which he can borrow because this is how the fiat system works, infinite money glitch.
- This will make his company more valuable than other companies – since it offers exposure to a valuable and scarce commodity (Bitcoin), but with added beta due to the companies existing profitable product suite. Said another way, as the Bitcoin they accumulate gains in value, Microstrategy stock will look undervalued compared to the underlying collateral.
- Since BTC won’t go to zero, and the Federal Reserve has to keep cutting rates (boosting stocks), this is a perfect storm for MSTR, and it will benefit from the liquidity injection and outperform Bitcoin even as Bitcoin enters its 4-year cycle … blah blah blah.
This is my best attempt to repeat this thesis, I wrote it in 2 minutes. I refuse to even copy edit it. The gist is companies that some people believe buying Bitcoin stock can outperform Bitcoin for some reason, and that this isn’t speculation, but morally aligned Bitcoin maximalism, or something…
Maybe Dylan LeClair can explain the math to you. He’s tried with me multiple times, and I’ve never understood anything more than the above. Amount of Bitcoin the company owns per share = good. No Bitcoin divided by shares = bad.
So, why did I buy MSTR? Short story, I had money in my 401(k) that I can only invest in regulated investments. (Yes, that means I own Bitcoin ETFs as well.)
But that’s not really the whole story. Really, I’m just tired of watching the MSTR bulls be right about whatever it is they are talking about, and want some skin in the upside. Should I have done some diligence here? Should I have some hypothesis? Shouldn’t I just be HODLING?
Maybe, but have you considered Michael Saylor, bull, bull, bull?
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Does World Liberty Financial Count as Trump ‘Launching a Coin’? Polymarket Bettors Are Divided
Published
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October 14, 2024By
adminAnother No holder by the name of Lawyered.eth points to language from the white paper, first reported by CoinDesk, which reads: “World Liberty Financial is not owned, managed, operated, or sold by Donald J. Trump, the Trump Organization, or any of their respective family members, affiliates, or principals… World Liberty Financial and $WLFI are not political and have no affiliation with any political campaign.”
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Bitcoin
Bitcoin price charts point to explosive gains in the long term
Published
5 hours agoon
October 14, 2024By
adminBitcoin and other cryptocurrencies started the week well, buoyed by ongoing stimulus discussions in China, the world’s second-largest economy.
Bitcoin (BTC) crossed the important resistance point of $65,000 for the first time since Sept. 30. It has risen by over 10% from its lowest level this month and by 32% from its August low, signaling that it is in a bull market.
Bitcoin’s surge coincided with a strong rally in the global equity market after Chinese officials unveiled a series of stimulus measures.
The Shanghai Composite Index rose by 2%, while the Shenzhen index increased by 2.65%. A similar trend occurred in other Asian and European markets. In the U.S., futures tied to the Nasdaq 100 and Dow Jones continued to rise.
Bitcoin’s rally also followed increased institutional interest, with investors continuing to buy spot Bitcoin ETFs. Data from SoSoValue that ETFs saw net inflows of $308 million last week.
BTC monthly chart points to more gains
The monthly chart suggests that Bitcoin may experience more long-term gains. It shows that the BTC price has been forming a cup-and-handle pattern since peaking at $68,856 in 2021. It retested that level again this year and formed a rounded bottom.
The recent consolidation has been part of the handle section, which typically precedes a major bullish breakout.
This consolidation is also part of a bullish flag pattern, characterized by a long flagpole followed by rectangular consolidation.
Additionally, the chart shows that Bitcoin formed a hammer candlestick pattern in August. This pattern, characterized by a long lower shadow and a large body, is one of the most bullish signs.
Therefore, more gains will be confirmed if Bitcoin rises above the year-to-date high of $73,800. However, these patterns, especially on the monthly chart, can take time to fully play out.
Bitcoin daily chart catalysts
The daily chart also indicates potential near-term gains. Bitcoin has remained solidly above the 50-day and 200-day Exponential Moving Averages. It has also avoided forming a death cross pattern, which often signals further downside.
Bitcoin has also been forming a broadening wedge pattern since March, characterized by a series of higher lows and lower highs. In this case, its higher lows were at $73,800, $72,000, and $70,000.
A break above the descending trendline and the all-time high at $73,800 will confirm a bullish breakout and likely lead to further gains. The odds of Bitcoin reaching a record high this year are increasing.
According to Polymarket, there is a 62% chance that Bitcoin will rise to $63,800 this year, the highest odds since Sept. 29 and significantly higher than this month’s low of 32%.
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Markets
Monochrome to Launch ‘World First’ Ethereum ETF on Cboe Australia
Published
14 hours agoon
October 14, 2024By
adminMonochrome Asset Management is preparing to launch Australia’s first spot Ethereum exchange-traded fund on Cboe following the asset’s long-anticipated approval in the U.S. market.
Set to begin trading on Monday (Tuesday 10 AM AEDT), Monochrome’s Ethereum ETF (IETH) follows the launch of its Bitcoin ETF (IBTC) in August 2023, which has since garnered $15 million (US$10.1 million).
While that falls well short compared to the billions held in the U.S., the fund is positioning itself as the world’s first to offer in-kind Ethereum subscriptions and redemptions.
It’s a feature that could allow for greater tax efficiencies, CEO Jeff Yew told Decrypt in an exclusive interview.
The dual-access bare trust structure is designed to prevent a capital gains tax event, allowing long-term crypto participants to transfer Ethereum into the corresponding Monochrome ETF without triggering a change of legal and beneficial title.
“A ‘bare trust’ means that your investment in the ETF may be treated as if you directly own the Ethereum,” Yew explained.
In other words, the structure gives investors absolute entitlement to their allocated Ethereum, according to the fund’s public disclosure statement shared with Decrypt.
This means that any actions taken by the trustee are treated as actions of the investor, ensuring that no CGT event is triggered upon redemption or transfer as long as beneficial ownership remains unchanged.
This structure is what Monochrome is hoping sets its offering apart from its U.S. counterparts.
In January, the U.S. Securities and Exchange Commission approved 11 spot Bitcoin ETFs. That was later followed by the approval of nine Ethereum ETFs in May, with billions of dollars flowing into the funds in the months that followed.
While the Australian market is unlikely to ever match those inflows, Monochrome is hoping to build on surging investor interest this year.
“US crypto ETFs can’t be supported in kind, including Bitcoin ETFs, and they are not operated in this timezone,” Yew said.
IETH will track the CME CF Ether-Dollar Reference Rate – Asia Pacific Variant, with a management fee of 0.50%, reduced to 0.21% for accredited advisers. That places it within the range of its U.S. competitors, offering an average of 0.20% and 0.25%.
The ETF will also be available on most Australian brokerage platforms, supporting transfers from crypto platforms, decentralized wallets, and cold wallets.
Crypto financial services firm BitGo and crypto exchange operator Gemini will provide custody services for IETH, while State Street Australia will serve as the fund administrator.
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