MicroStrategy’s aggressive bitcoin policy – a threat to the US dollar?

Michael Saylor blows the whistle: MicroStrategy’s aggressive Bitcoin policy

MicroStrategy knows no stopping now. The company wants to invest another $1 billion worth of Bitcoin in Bitcoin and is borrowing money again to do so. How much further can Michael Saylor go?

He has done it again. Last Wednesday, 17 February, the news reached us that MicroStrategy, under the leadership of its charismatic CEO Michael Saylor, will once again invest in Bitcoin. After the company had already started to convert its cash reserves into Bitcoin Code in the summer of 2020, the latest motto is: buy on credit.

In December last year, the company began issuing bonds, so-called senior convertible notes. According to the prospectus, the proceeds from the bonds were to flow into BTC in order to further increase the position.

Whoever thought that MicroStrategy’s management was satisfied with this was wrong. As a press release shows, the first issue of notes was still comparatively small with a volume of 400 million US dollars (USD). In the latest securities issue, the company states a funding target of one billion US dollars.

The most piquant detail, however, is the interest rate on the securities. It is zero.

Dollar slide

It must be said in no uncertain terms: what Michael Saylor is doing here is an orchestrated attack on the US dollar as the world’s reserve currency. Because due to the loose monetary policy that the central banks have been pursuing since March 2020 with a view to the COVID pandemic, fiat money is currently available at zero cost. And this is what the business intelligence firm, which acts like a kind of leveraged Bitcoin hedge fund in the stock market, is taking advantage of.

The base money supply of the US dollar, for example, has almost doubled since the beginning of the pandemic, as can be seen in the following chart.
Base money Fed. Image source: Fred.

One consequence of this unprecedented flood of liquidity is low interest rates. Ten-year German government bonds are currently yielding about -0.34 per cent. What was unthinkable years ago is now reality: those who lend money are not rewarded for foregoing liquidity, but are guaranteed to receive less in return.

From this point of view, the zero interest on MicroStrategy’s senior notes is almost a good deal. The bottom line is that Saylor is doing everything it can to get the US dollar off its books.

It is obvious that companies should exchange US dollars that are guaranteed to lose value for something that is guaranteed to gain value,
Michael Saylor

Bond sell-off would be bullish signal for bitcoin

Now, corporate bonds are fundamentally riskier than government bonds. After all, unlike governments, private companies must submit to the rules of the market and do not have a central bank partner with unlimited liquidity on their side.

From this point of view, the issuance of the bonds is not only a courageous step on the part of Michael Saylor. If the company manages to raise a billion US dollars, it will be an extremely bullish signal for Bitcoin.

To understand this, one must know that, according to the prospectus, the convertible notes can be exchanged for exactly 0.6981 MicroStrategy shares (ISIN: US5949724083/ Ticker: MSTR) per unit. The nominal value per senior note is USD 1,000. At an MSTR price of USD 941, this translates into a premium of a good 52 percent.

In other words: If you invest in the MSTR bonds now, you will only make a profit when the company’s share price rises by at least 52 percent. Since the share price develops proportionally to the BTC price, investors are clearly betting on a further rise in the price of the cryptocurrency.

For the time being, however, investors are taking a negative view of the project. Since the announcement of the bond issue, MSTR has fallen by 5 per cent.

Bitcoin sale al di sopra di $47K dopo la più grande candela giornaliera di sempre

Bitcoin ha raggiunto gli 8.871 dollari e ha registrato un nuovo ATH in 24 ore dopo che il mondo ha saputo del massiccio investimento di Tesla di 1,5 miliardi di dollari in BTC.

L’8 febbraio è stato un giorno storico per l’ecosistema crypto… Tutto grazie all’influenza di Elon Musk.

Dopo la rivelazione che Tesla – la principale azienda di Elon Musk – aveva investito 1,5 miliardi di dollari in Bitcoin System, la criptovaluta si è impennata, battendo diversi record e liquidando miliardi di dollari in posizioni corte.

Bitcoin fa la storia… due volte

Bitcoin ha avuto una giornata memorabile non solo per aver raggiunto un nuovo ATH – la criptovaluta ha raggiunto 47.550 dollari – ma anche per aver avuto la più grande candela rialzista nella sua storia.

Da un minimo di 38058 dollari a un massimo di 46.929 dollari, la crescita del cripto in 24 ore segna un record assoluto in termini di valutazione lorda. Attualmente, il prezzo ha corretto un po‘, muovendosi un po‘ verso l’ordine di $46409 al momento della scrittura di questo articolo.

Il 2021 non è stato un anno per i deboli di cuore. In questi 39 giorni, Bitcoin ha registrato non solo la sua più grande crescita ma anche il suo più grande calo di 24 ore. L’11 gennaio, in mezzo all’hype del toro, Bitcoin è sceso da 38273 a 30100 dollari dopo che si sono diffuse false voci secondo cui era stata eseguita una doppia spesa di circa 20 dollari sulla rete.

Da quel punto in poi, la criptovaluta non è stata in grado di ritrovare il suo trend rialzista, raggiungendo i minimi di $28732 il 22 gennaio, che è servito come punto di rimbalzo per un nuovo rally del mercato.

L’effetto Musk

L’Effetto Musk non sarebbe estraneo a coloro che seguono i mercati. L’uomo è niente meno che l’essere umano più ricco dell’intero pianeta terra, quindi deve sapere qualcosa sugli investimenti. Ma i Bitcoiners non sono gli unici a reagire con entusiasmo ai suoi commenti.

Nel 2020, un tweet di Elon Musk che diceva che, secondo lui, le azioni di Tesla erano „troppo alte“ ha portato ad un calo di quasi il 12% nella valutazione della società… Subito dopo che si era accordato con la SEC su questioni relative al suo uso di Twitter e altri social media.

Il prezzo delle azioni Tesla è troppo alto imo

– Elon Musk (@elonmusk) 1 maggio 2020

Elon Musk può essere il re del Bitcoin ora, ma il CEO di Tesla ha tenuto a lungo un posto nel cuore – e nelle tasche – della comunità Dogecoin. I suoi tweets, memes e bios hanno causato pompe di criptovalute, e in effetti, le pompe più significative nella storia della criptovaluta possono anche essere attribuite a un Elon Musk e ai suoi tweets.

E al di fuori del mondo delle criptovalute, gli investitori stanno pedinando Musk, cercando di cogliere il minimo segno in uno dei suoi tweet, consapevoli che l’effetto Musk è reale e si applica a qualsiasi cosa in cui si possa investire.

Per esempio, Elon ha twittato recentemente su Sandstorm, Shopify e Etsy. Tutti loro sono saliti subito dopo. Ha fatto lo stesso con Signal e GameStop, facendo salire i loro prezzi. Ha anche avuto un effetto positivo sulle azioni di CD Projekt Red dopo il disastro di Cyberpunk 2077.

Con Cyberpunk, anche gli hotfix hanno letteralmente degli hotfix, ma… grande gioco

– Elon Musk (@elonmusk) 28 gennaio 2021

Allora, cosa c’è dopo, Elon? Per favore, facci sapere prima di twittare.

1 billion crypto-users: Elrond’s daunting goal, which reveals the global Maïar application

What could be more symbolic? After crossing a value of $ 1 billion, the official launch of Maiar , head of the Elrond Gold project, is finally on track. Let’s discover in detail the ambitions carried by Beniamin Mincu, CEO emblematic of a protocol in the making.

This promotional content is brought to you in conjunction with Elrond Gold .

Time and technology

The Elrond company , a leading European startup, has a clear goal: it wants to be at the origin of the biggest wave of crypto adoption ever. To do this, one of the major applications of its ecosystem, Maiar , is introduced with great fanfare. This new payment platform is in direct competition with the giants Paypal, Google Pay and Revolut.

Bitcoin Trader review will be able to rely on a major technology: the Elrond blockchain is capable of performing 100,000 transactions per second . In addition to extreme fluidity, the costs associated with this new payment network are anecdotal. Users will be able to take a new step forward in the way they interact with their money, assets and digital properties.

Money is the best way to make something that is fundamentally not fungible: our time . We built Maiar to help you take back control.

Adoption objective

Indeed, the advantages offered by blockchain technology are still not very visible. Users expect an intuitive, easy-to-use solution with features that can compete with the best payment applications . Maiar was therefore designed to address these shortcomings, and enlist an unprecedented wave of users.

Billions of people are able to send messages to their contacts in a convenient, intuitive way and at almost no cost. Maiar and the Elrond blockchain now offer the same experience with currency

Benjamin Mincu, CEO of Elrond

By placing the user at the center of its ecosystem, Maiar allows each smartphone owner to set up an electronic wallet and transfer value (and this in a few seconds!). No more complex sending and receiving addresses , users can define an @herotag to carry out their transactions. With the snap of a finger, money can be transferred around the world, almost instantly, with minimal fees.

Progressive security and incentive mechanisms will be key elements in the adoption of Maiar. The application aims to offer a refreshing experience, and revolutionize the transfer of value on the internet.

Over 300,000 users have registered for priority access to Maiar . They will soon be joined by a wave of new arrivals. Indeed, the application is now available on the App Store and the Google Play Store.