🟠 BTC Custody

First time reading? I’m Jordan, and this is The Bitcoin Minimalist. Every Tuesday & Thursday, we scour 100s of sources to bring you need-to-know Bitcoin insights.

Good morning — Jordan here.

Happy Tuesday to the 20,130 Minimalist members reading today. 👋 

Today we’re covering:

• MicroStrategy bought 10,107 more BTC

• SAB 121 repeal may enable US banks to custody Bitcoin

• Bitcoin miners pivot to AI markets

• And everything else you need to know.

Estimated read time: 2 minutes and 49 seconds

WHAT WE’RE WATCHING

📊 Trump’s memecoin launch drove Google searches for “crypto” to a 3-year high. On Jan. 18, the release of TRUMP and MELANIA tokens spurred interest in crypto apps and Solana activity but led to a 60% price drop and millions in losses for investors.

🗳️ Arizona Senate committee approves Bitcoin reserve bill. The bill allows up to 10% of public funds to be invested in Bitcoin, pending full Senate and House approval. If passed, Arizona would become the first U.S. state to establish a strategic Bitcoin reserve for public funds.

🌐 Ripple CEO opposes Bitcoin-only reserve, and advocates for diverse crypto reserve. Brad Garlinghouse argues for a U.S. digital asset reserve that reflects the broader crypto ecosystem, not just Bitcoin. Critics of XRP and Bitcoiners argue that Ripple is purposely undermining Bitcoin-focused strategies and lobbying politicians.

💼 The Senate confirmed pro-Bitcoin Scott Bessent as US Treasury Secretary in a 68–29 vote. Bessent opposes central bank digital currencies, supports innovation, and aligns with Trump’s economic policies, including tax cuts and increased oil production. He will influence fiscal policy, financial regulations, and the $28 trillion Treasury debt market.

📉 MicroStrategy bought 10,107 BTC, bringing its total holdings to 471,107 BTC at an average purchase price of $64,511. The company launched a $250M preferred stock sale to fund further Bitcoin purchases, offering 8% dividends and convertible shares. This marks its 12th consecutive week of Bitcoin acquisitions.

📊 Metaplanet plans a $750M BTC fundraise, targeting 21,000 BTC by 2026. The Tokyo-based firm already holds 1,762 BTC worth $181M, with its stock up 2,347% in 2024. Its strategy includes bonds, equity raises, and shareholder BTC rewards to solidify its role as Asia’s Bitcoin leader.

🤖 Bitcoin miners are pivoting to AI and high-performance computing (HPC) to offset declining profits from mining. Leveraging existing infrastructure and power access, companies like TeraWulf and Core Scientific are entering AI markets with higher margins and stable revenues, despite challenges like costs, competition, and regulatory hurdles.

IN THE LOOP

• MicroStrategy launched a 2.5 million perpetual preferred stock offering called STRK to fund bitcoin buying.

• Trezor emphasized Bitcoin self-custody as a safeguard against institutional custody risks.

• Standard Chartered's Geoffrey Kendrick recommends buying bitcoin during this dip.

• KuCoin exits the U.S. market and pays $300M in fines.

• Petrobras explores Bitcoin mining using excess flare gas.

The most clicked link in our last newsletter was on Trump’s call with Nayib Bukele where they discussed immigration, gang crackdowns, and Bukele’s regional leadership.

POLL

THURSDAY’S POLL RESULTS

What will Bitcoin's future relationship with the US dollar look like?

🟩🟩⬜️⬜️⬜️ 🤝 They will co-exist (41%)

🟨⬜️⬜️⬜️⬜️ 🟠 Bitcoin will replace the dollar (18%)

🟥⬜️⬜️⬜️⬜️ 💵 The dollar will continue to dominate (7%)

🟨🟨⬜️⬜️⬜️ 🥇Bitcoin will replace gold, but not the dollar (34%)

🤝 They will co-exist: “It actually depends, BTC may displace the dollar in due course unless the dollar is extremely well managed going forward.” — Ben

💵 The dollar will continue to dominate, BTC will be second: “The term ‘future relationship’ is a little vague. When is the future? BTC and USD will coexist in the near future, but the dollar will continue to dominate for a while. I doubt bitcoin will replace gold, but I do think they will co-exist. Might bitcoin replace the dollar? Wow! IDK, but if it does I think that will be quite the upheaval and a bit further down the line.” — Jeremy

🥇Bitcoin will replace gold, but not the dollar: “We need King Dollar to be #1...BTC will devour gold, bonds and real estate” — Chris

VIDEO

The repeal of SAB 121 allows U.S. banks to custody Bitcoin without penalizing regulatory capital requirements.

This may make it possible for institutions like JPMorgan and Goldman Sachs to offer Bitcoin custody.

🎥 Watch Matthew Kratter’s breakdown:

CHARTS & DATA

S2F, Realized Price, 200 Week MA - Bitcoin is well above the 200-week moving average and the 2-year realized price, but still very far away from the projected stock to flow price.

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