MSTR Bought $5.4B BTC (55,000 More)

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Good Morning.

The market is seeing some retracement (well deserved), but it seems like the appetite for leverage traders is still quite high as open interest soared right away. We're in a lull period until Trump’s inauguration given EOY holiday season. Combined with funds doing their EOY accounting, this might cause further selling in the short-term.

In Today's Email:

• What Matters: MSTR Acquires 55,500 BTC 💰️ 

• Case Study: Why Crypto Twitter Matters 🫂 

• Governance & Features: Binance’s BFUSD 🟡 

You read and share. We listen and improve. Send us feedback at [email protected].

WHAT MATTERS

MicroStrategy Acquires Another 55,500 BTC

State of play: MicroStrategy has purchased another 55,500 BTC for $5.4B at an average price of $97,862 per BTC, marking its largest acquisition to date.

This brings its total Bitcoin holdings to 386,700 BTC, valued at over $37B.

• The acquisitions followed a $3B debt offering and $2.46B raised from selling 5.6M shares.

• The company has spent approximately $21.9B on its total BTC holdings, with an average purchase price of $56,761 per BTC.

• Analysts predict the firm may acquire 4% of bitcoin’s circulating supply within a decade, potentially holding 830,000 BTC by 2033.

What’s next: MicroStrategy aims to raise $42B over three years for further acquisitions via equity and fixed-income securities.

Why it matters: MicroStrategy has signaled that it wants to become a Bitcoin bank in the future — which will help BTC to become an even more productive asset and store of value.

Our take: MicroStrategy is being utilized as a proxy BTC levered bet by wall street and traders that don’t prefer to directly buy Bitcoin.

For builders and investors: There’s currently a massive premium of MSTR stock price vs the value of the BTC that it holds.

• Many has criticized that if MSTR isn’t careful, this play to issue debt while the premium exists might backfire and can become the next widow maker trade.

CASE STUDY

Why CT Matters for Distribution and Growth

Credits to eNate for the original tweet

While CT (crypto Twitter) may not be ideal for everyone, it is indispensable for crypto companies navigating user acquisition and retention in a crowded, competitive landscape.

Succeeding on CT involves leveraging it as a strategic tool for authentic and consistent engagement. Here’s why CT is crucial according to eNate:

• CT serves as a primary distribution channel due to its high concentration of crypto enthusiasts, especially in Western markets.

• It is also a hub for user retention, offering unfiltered feedback and real-time sentiment tracking.

• Marketing and mindshare are vital for survival, making CT a pivotal part of the crypto marketing funnel.

• Projects must guide users through key stages: awareness, consideration, conversion, and advocacy.

• CT excels in the awareness phase, capturing the attention of a crypto-savvy audience that can later be converted into loyal users.

• The challenges of onboarding new users into crypto highlight CT’s value in targeting audiences already familiar with the ecosystem.

• To succeed on the platform, projects must prioritize authenticity, consistency, and audience understanding.

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INSIGHTS

Justin Sun Invests $30M in Trump’s WLFI

Tron founder Justin Sun announced a $30M investment in World Liberty Financial (WLFI) tokens, the crypto project supported by US President-elect Donald Trump. WLFI appointed Sun as an advisor on Tuesday.

• This purchase makes Tron the largest investor in the project, which had faced a slow start following its launch.

• Sun expressed enthusiasm for the US becoming a blockchain hub under Trump's leadership, noting that Bitcoin's price has surged since Trump’s election.

• WLFI's "gold paper" outlines that DT Marks DEFI LLC, linked to the Trump family, retains rights to 75% of the net protocol revenues and $337.5M in tokens at the sale price.

• The high control by Trump’s cronies potentially deterred early buyers.

• Sun’s latest move follows his recent election as prime minister of Liberland, a micronation that uses Bitcoin as its official currency.

FEATURES & GOVERNANCE UPDATE

Binance Launches BFUSD

Binance is set to launch BFUSD, a “reward-bearing margin asset” designed for futures trading and passive income generation. Unlike stablecoins, BFUSD can only be used as a margin on Binance Futures and redeemed for USDT.

• The exchange promises that BFUSD’s APY will “never go below zero,” supported by a Reserve Fund seeded with 1M USDT to offset negative funding rates.

• Users holding BFUSD can earn a Base APY daily or a higher Boosted APY through active trading.

• Historical data suggests APYs have ranged between 12%-35% (Base) and 15%-47% (Boosted) during testing.

• Binance leverages strategies like delta hedging and ETH staking to generate rewards.

• Eligible Binance Futures users can purchase BFUSD starting Nov. 27, with no fees during the promotional period through Dec. 26.

• All transactions and rewards will use USDT, and users can earn bonus APY and vouchers as part of the promotion.

Other notable feature updates:

• dYdX launches MegaVault.

• RISC Zero introduces Kailua.

• Galxe is now live on Telegram.

• Monad has initiated its testnet rollout.

• Sky announced the launch of USDS on Solana.

• Base introduces USDC rewards on Coinbase Wallet.

QUICK BITES

• Uniswap offers a bug bounty worth up to $15.5M.

• Brazilian lawmaker proposes a national BTC reserve.

• Flashbots unveils BuilderNet to combat centralization.

• Trump team looking to shift crypto regulation to CFTC.

• PumpFun disables the live-streaming feature indefinitely.

• UK crypto ownership rises to 12% of the adult population.

• Spot Bitcoin ETFs end positive streak with $438M outflows.

• Ripple injects another $25M into crypto Super PAC Fairshake.

• WalletConnect launches first airdrop season with 50M tokens.

• US court says Treasury 'overstepped' in Tornado Cash sanctions.

• Justin Sun named advisor to Trump’s WLFI following a $30M investment.

NOTEWORTHY READS & MEME

• Pantera’s read on its 1000x Bitcoin fund.

• Taiki Maeda’s read on AI memecoin supercycle.

• ZachXBT’s read on $3.5M PumpFun compromises.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.