MICROSTRATEGY

MicroStratrgy Acquires 5,445 More Bitcoins; Total Value Exceeds $4.6B

The Scoop: MicroStrategy made another significant addition to its Bitcoin treasury by purchasing an additional 5,445 BTC, putting the total owned by the company at 158,245 BTC, valued at $4.6 billion.

A Great Buy at Any Price: They purchased the additional coins at an average price of $27,053 per BTC, totaling $147.3 million for this tranche of bitcoins.

Bringing Down the Average: This purchase brought down the average purchase price on the entire lot of coins they own. The new average purchase price is $29,582 per Bitcoin. This purchase also brings their total share of all bitcoins from .728% to .754%.

Acting Like an ETF: This purchase continues to prove a narrative that MicroStrategy is essentially attempting to act as a sort of Bitcoin Spot ETF without legally being one. The company continues to acquire bitcoins at a regular pace, even resorting to debt financing and additional stock issuance to increase its holdings of the original cryptocurrency.

WHAT WE'RE WATCHING

🗳️ Election Betting Odds indicate a ~60% likelihood of pro-Bitcoin Libertarian party candidate Javier Milei winning the presidential election in Argentina. Milei has made quite a splash in the historically liberal country, going so far as to call taxes “theft”.

🔐 Guatemalan startup Simple Proof uses OpenTimestamps on Bitcoin's blockchain to safeguard election data against fraud, enhancing transparency amidst historical political corruption. This tech debunked false tampering claims in a recent election, showcasing Bitcoin's potential in securing democratic processes.

😮 A recent report reveals a stark devaluation in NFTs, with 95% of NFT collections now valued at zero. As of July 2023, weekly NFT trade volumes reached only $80M.

🔌 Chamber of Digital Commerce unveils the Digital Power Network. The CDC aims to be a special interest group formed in order to champion Bitcoin mining and promote renewable energy policies. With industry giants like Riot and Bitfarms onboard, it aims to influence energy policy in Washington.

🌎 A video surfaced of 50 teachers in El Salvador learning about Bitcoin in order to teach their students following the launch of a pilot program to integrate Bitcoin education in all schools by 2024, in collaboration with My First Bitcoin, Bitcoin Beach, and the Ministry of Education.

📈 The amount of Bitcoin addresses with balances between .1 and 1 BTC reached an all time high. This cohort of addresses now holds over 1.07M BTC. This change indicates a trend of a more wide distribution of existing coins over time.

🇳🇬 Nigeria just surpassed El Salvador as the country with the most google searches for Bitcoin. As reported last week, Nigeria also now ranks as the highest regional bitcoin transaction volume of any country on earth with 9.3%.

FEDERAL RESERVE

Morgan Creek Capital CEO Sees $300B into Bitcoin Following Spot ETF Approval

The Scoop: Morgan Creek Capital CEO Mark Yusco predicts a Bitcoin spot ETF approval by the SEC could initiate a $300 billion influx into the market, highlighting the significance of this approval for institutional investment in Bitcoin.

Path to Institutional Acceptance: Yusco explains that regulatory uncertainties and concerns about custody have deterred institutional investors from entering the crypto space. The approval of a Bitcoin spot ETF in the U.S. would provide a regulated and secure avenue, fostering confidence among these investors.

BlackRock's Game-Changing Pursuit: Among the wave of applicants for a spot Bitcoin ETF, BlackRock, the world's largest asset manager, is perceived as a formidable contender. Yusco sees BlackRock's entry as a pivotal moment in the Bitcoin ETF narrative, with an expectation of approval either by year-end or early 2024.

Contracting Predictions: Yusco’s prediction contrasts with Bloomberg Senior ETF analyst Eric Balchunas' estimation of a $150 billion market influx following approval. Yusco sees a bigger jump because of the relatively small volume of tradable bitcoin on the market compared to other assets; most bitcoin is held by long term holders who will not sell.

POLL

Last Thursday’s Poll Results

Do you believe the Fed will hike rates again at the next FOMC meeting in November?

Yes - 44%

No - 56%

👍 Yes: “Inflation is still above 4% and growing - I am honestly surprised they didn’t raise again this time. If they are still targeting 2% as they say, then they need to keep raising. ” - John

👎 No: “Because they're idiots.” - Carl

IN THE LOOP

🏛️ Senator Bob Menendez of New Jersey was indicted on charges of assisting the Egyptian government covertly, and obstructing a friend's criminal prosecution in return for gold and cash. In 2022, Menendez claimed El Salvador’s Bitcoin law opened the door to money laundering and corruption.

🔍 UTXOracle is a new Python script capable of approximating the Bitcoin price from publicly available blockchain data. This allows users to track fiat price averages without third-party exchange data, fostering further decentralization and helping to solve the oracle problem.

😬 Mixin Network has halted deposit/withdrawal services temporarily due to a hack resulting in a loss of around $200 million. Blockchain security firm SlowMist is aiding the investigation. Mixin's founder Feng Xiaodong assured users that ‘at least half of the assets remain secure’.

🔄 A majority of creditors affected by Celsius bankruptcy approved a plan to redistribute crypto assets and equity in a new entity, with over 98% voting in favor. This plan, now awaiting final approval by a New York court on Oct. 2, entails distributing about $2 billion in bitcoin and ether, and forming a new company, "Fahrenheit", to revamp and continue Celsius' operations.

🛑 Binance and its U.S. counterpart, along with CEO Changpeng Zhao, are pushing to dismiss SEC lawsuit, accusing the regulator of overstepping by labeling many crypto assets as securities without clear Congressional mandate.

Today’s newsletter was written by Colin and edited by Jordan.