The news about Bitcoin and cryptomoney is in constant turmoil. It can happen that vital information gets lost in the daily news flow and you miss the important points.
This format is there to remedy this. We look back over the past week’s news in Crypto Weekly to keep you informed about the current situation of cryptomoney.
🔬 The unmistakable of the corner
This week, we will look at Thibaud Marechal’s article, in which he explores the question of Bitcoin’s status: can it be considered as a future reference reserve asset? Between recovery policies and the bitcoinisation of company reserves, nothing is left out!
The MicroStrategy Case
August 11, 2020 is an important date for Bitcoin. The King of Cryptos has been recognised as a corporate cash asset by Wall Street. MicroStrategy, a computer intelligence software company with a market valuation of $1.2 billion, announced the conversion of $250 million of cash into Bitcoin, representing 21,454 tokens.
Recently, MicroStrategy also acquired an additional 16,796 BTCs for $175 million. According to its CEO, Michael Saylor, these two purchases represent a total of $425 million for 38,250 BTCs. It is the first publicly traded company to announce bitcoin holdings on this scale. In this article, we will try to analyse what this means for corporate treasury, for public company valuations and for the indirect institutional stake in Bitcoin.
A favourable context
Now that Bitcoin has been adopted as the primary reserve asset by NASDAQ-listed MicroStrategy, other companies will be forced to look at it. In the months following MicroStrategy’s announcement, a few firms have already taken the plunge, including Square, also listed on the NASDAQ, with a valuation of more than $75 billion. The latter acquired $50 million of Bitcoins. A more or less complete list of 15 companies that have added Bitcoin to their treasury now includes more than 785,999 BTCs, which represents about 3.74% of the total supply of 21 million bitcoins, at the time of writing this article.
Following the economic slowdown caused by globalized confinement and supply chain disruptions in the first half of 2020, companies have slowed investment programmes, reduced costs and increased cash reserves to adapt to the economic uncertainty. The companies making up the Nasdaq 100 – the index of the 100 largest non-financial companies listed on the stock market – now have nearly $1 trillion in cash, or $1 trillion. US technology moguls like Microsoft, Google and Apple are accumulating more money than ever before. Despite $121 billion in cash, Google’s parent company Alphabet has raised $10 billion by issuing bonds with the lowest interest rate in history for a company. Collectively, since 2012, the Nasdaq 100 has grown from $405 billion to just under $1 trillion in cash reserves.
Read the full article to learn more: Is Bitcoin the safest reserve asset in the world?
🗞 News in brief
▶ JP Morgan turns his verse towards Bitcoin. Initially presented as a „fraud“, the bank has now classified Bitcoin as an interesting long-term investment.
▶ PoolTogether starts yield farming. In the latest online version, the protocol is evolving and now connects to different yield farming strategies to offer greater gains to its users.
▶ Société Générale has joined forces with Consensys to develop its digital euro. Thus, in addition to the Tezos blockchain, Société Générale will also explore the possibilities offered by Ethereum.
▶ Coinbase has announced the launch of a credit card for the US in 2021. Unlike the European version, it will offer 1% cashback in BTC or 4% in XLM.
▶ Singapore’s largest bank is launching a new cryptocurrency business. It has announced the launch of its own cryptoexchange and is opening up this new market to the 426 billion dollars it manages.
▶ That’s it, copytrading has finally arrived at Corner Trading! We take this opportunity to present all this to you on video.
📊 The 5 metrics of the week
➤ $24 million is the amount stolen by an attacker on the DeFi Harvest.finance protocol. Let’s take a look back at the method that enabled him to carry out this attack.
➤ 1.15 billion dollars is the record amount of a Bitcoin transfer that took place this week. A transfer that made the banks sweat because it only cost $3 in transaction fees.
➤ 17,732 is the number of Bitcoins held by MicroStrategy CEO Michael Saylor. As a reminder, MicroStrategy recently purchased more than 38,000 BTCs to „protect itself from the instability of the dollar“.
➤ 5 million is the number of UNIs that could be distributed to users of third-party applications interacting with Uniswap. This is the proposal made by the Dharma protocol, following the initial uneven distribution of UNI tokens.
➤ 2 billion dollars is the amount of bitcoins that are tokenised on the Ethereum network. This record figure comes at the same time as the explosion of the DeFi ecosystem.
✉️ Tweet of the week
The tweet of the week goes to our colleague @JohnOnChain and his surprising discovery, to say the least. The TweetStamp bot, which is supposed to time stamp tweets according to Bitcoin, is completely non-functional… an unfortunate fact that no Bitcoiner worthy of the name had ever bothered to check. „Don’t trust, verify“, you see the topo 😉