MicroStrategy, the second-largest institutional holder of Bitcoin, has cracked the code for booking profits. Hereâs how they do it đ:
Back in August 2020, under the leadership of Bitcoin maxi Michael Saylor, MicroStrategy started buying BTC. Fast forward to now, and they hold 245k BTC â thatâs about 1.2% of Bitcoinâs circulating supply, worth a cool $15.6 billion at todayâs prices. Hereâs their brilliant strategy:
1ïžâŁ Raise capital by selling debt and convertible notes 2ïžâŁ Use the capital to buy BTC, driving up its price 3ïžâŁ Watch the value of their BTC holdings skyrocket as Bitcoinâs price increases 4ïžâŁ Mark-to-market gains, boosting their reported profits 5ïžâŁ Higher profits = higher share price đ 6ïžâŁ Rinse and repeat, buying even more BTC!
In short, theyâre using fiat (which has infinite supply) to stack Bitcoin (which has a fixed supply), and guess what? Bitcoinâs appreciated by 45% over the past 5 years! đ„
No wonder theyâre sitting on billions in unrealized gains! Genius, right? đ€Ż
P.S. How has no one thought of this before?! Liked this post? Hit that â»ïž Repost button and share the wisdom!
2ïžâŁ Long-term holders who sold during the March top are quietly reaccumulating.
3ïžâŁ Miners are hoarding $BTC for the first time in a year â yep, even the miners are stacking sats.
All this means people have been buying and holding $BTC, while the available supply on exchanges has been shrinking... đ Increased demand + decreased supply = price go up đ„ (Thatâs how the math works, right?) But wait â why is Bitcoin still hovering around the low $60Ks? đ€ Well, this accumulation has been happening over time, with sellers still outpacing buyers, keeping the price in check. Smart money has been sneakily buying $BTC in small chunks over time, ensuring they grab up lots of Bitcoin without triggering a price pump. đ§ But hereâs the twist: those weak hands are drying up, and so is the sell pressure. Combine that with a massive $15B+ of short liquidations sitting just above the current price, and if/when Bitcoin hits ~$75K, short sellers will be forced to buy back $15B+ worth of BTC to cover their loans on Binance alone. đ„ Oh, and letâs not forget yesterdayâs rate cut announcement, pushing fresh cash into the market. All signs point to one thing: Bitcoin could be headed for a classic supply squeeze price pump. Think COVID-era toilet paper panic, but this time, itâs Bitcoin. đȘ
đïž 170 days after halving: the cycle begins đ 480 days after halving: the peak hits
Right now, weâre 152 days post-BTC halving! đđ Global liquidity is gearing up for a surge, and don't forget, the US elections are just 46 days away! đłïžđ„
Why the Lightning Network Failed to Fulfill Its Mission
The Lightning Network (LN) was designed to make Bitcoin transactions faster, cheaper, and more scalable. But despite its promise, LN hasn't quite delivered on those goals. Let's dive into why. What Is the Lightning Network? LN is a layer-2 solution built on top of Bitcoin, created to address three key issues: 1ïžâŁ Scalability: LN sets up a payment channel between two parties, allowing multiple transactions to occur off-chain. This reduces the load on the Bitcoin network. 2ïžâŁ Speed: Transactions within LN are nearly instant since only the opening and closing of a channel are recorded on the blockchain. 3ïžâŁ Lower Costs: Fewer on-chain transactions mean lower fees, making Bitcoin transactions cheaper. Why Has the Lightning Network Struggled? Despite its potential, LN suffers from several major problems: đ BTC Commitment Requirement: Both parties must lock up Bitcoin while their payment channel is open. Plus, the transactions are limited to the amount of Bitcoin committed, which can be restrictive. âïž Poor User Experience: LN-enabled wallets, particularly those aimed at micro-transactions, have been criticized for their poor UI/UX. Users in El Salvador, for example, have voiced dissatisfaction with LN wallets. ⥠Griefing Attacks: While no funds are lost, these attacks freeze a victim's Lightning funds, preventing transactions within the payment channel. đ Flood and Loot: Attackers overwhelm the network, forcing multiple users to claim their funds at the same time, creating congestion. This can lead to attackers stealing funds before the deadline. âł Time-Dilation Attacks: Attackers delay block delivery, preventing victims from staying up-to-date with the latest transactions. đ Pinning Attacks: Attackers trick users into closing their channels improperly, making it easier to steal transactions. Conclusion Although the Lightning Network was initially hailed as the answer to Bitcoin's limitations, its technical flaws and limited adoption have prevented it from becoming the success many hoped for. đŹ P.S.: What's your take on the Lightning Network? Let me know in the comments!
Yesterday, Nike dropped a major update: its Web3 platform, .SWOOSH, is taking a new direction after launching two years ago.
Nikeâs .SWOOSH is shifting from NFTs to focus on gaming, partnering with major platforms to offer exclusive in-game wearables and Nike products.
Kicking off with a TEKKEN 8 tournament, .SWOOSH is set to become the go-to place for Nike gaming experiences and events.
Letâs break it down: đ So far, 389,568 SWOOSH IDs have been minted on Polygon since November 2022. But hereâs the twist: Earlier this year, Nike laid off 1,600 employees (2% of its workforce), including parts of the team behind Nike Virtual Studios, which oversaw .SWOOSH.
Why the shift?
Nikeâs NFT venture didnât hit the mark.
Despite bringing in $3M, it pales in comparison to Nike's $50B in 2023 revenue. Plus, engagement was lacking.
The bigger picture: Nike's pivot is part of a larger trend where brands are rethinking their digital strategies for better returns and customer engagement.
Instead of NFTs, Nike is doubling down on gaming partnerships to create in-game experiences and exclusive wearables.
Key takeaway: Gaming is the next big thing.
70% of Fortnite players buy outfits for their avatars
56% of Gen Z Roblox users care more about their avatars' style than their own
Are NFTs dead for brands?
Probably, at least for now.
Remember when every brand was hopping on the NFT bandwagon? Those days seem to be on pause for now.
While the DeFi sector has hit a few bumps, Injective has been a standout performer. Its Total Value Locked (TVL) skyrocketed by 450% in just two months this year. đ
And if that wasnât impressive enough, Injective also facilitated the first-ever tokenized index for BlackRockâs BUIDL Fund earlier this month.
Hereâs why weâre bullish on Injective: Continuously evolving and updating its tech đĄSuper low fees: 3,000+ transactions for just $1. Solid tokenomics Developer-friendly, making it easier to build on than any other platform đ ïž
Injectiveâs momentum is hard to ignoreâcould it be the next big competitor to Solana?
Binance Set to Launch 'MoonBix' Play-to-Earn Game on Telegram Mini-App!
Big news for gaming and crypto fans! Binance is gearing up to launch MoonBix, a brand-new play-to-earn game, right on Telegramâs Mini-App platform. đźđ°
With MoonBix, youâll be able to earn rewards while gaming, bringing the play-to-earn model directly to your fingertips. This could be a game-changer for both crypto adoption and mobile gaming. đâš
Stay tuned, gamers and crypto enthusiasts â this is one adventure you donât want to miss! đ„
Read more here đ [Binance's MoonBix on Telegram](https://cryptoslate.com/binance-to-launch-moonbix-play-to-earn-game-on-telegram-mini-app/)
Did you know Bhutan is mining Bitcoin like a pro? Here are some fun facts about this tiny kingdom:
- Bhutan prioritizes Gross Domestic Happiness over GDP (which is ~$3.11B). - With a population of 780k (less than San Francisco), it's one of the happiest countries on Earth.
- And guess what? It holds the 5th highest $BTC reserves of any country in the worldâyes, even more than El Salvador!
Hereâs the wild part: Bhutan has been quietly mining Bitcoin using its hydropower resources to amass $780M in BTC, now equal to 25% of its GDP!
To break it down, Bhutanâs Bitcoin stash is worth $1,000 per citizen. đ€Ż
But waitâletâs reframe this. Instead of exporting energy via traditional infrastructure, Bhutan is selling its energy digitally by mining Bitcoin on-site. Theyâve built a crypto nest egg that could match, or even surpass their GDP if Bitcoin hits $250K!
The takeaway? Bhutan has redefined what it means to export energy in the digital age. đĄ