what do you think about square's re-brand to block? if you were in charge of the company, what bitcoin product or service would you build?
Important to note that MicroStrategy is owned by an increasingly large number of funds and institutions.
Many of whom are buying MicroStrategy's new debt/equity offerings as a means of acquiring Bitcoin exposure themselves.
Every time MicroStrategy issues shares or convertible notes, Michael Saylor's stake in the company is actually being diluted by the incoming funds buying shares.
Yup, MicroStrategy has now exhausted their $1B shelf offering announced on June 14th, seems like the next big catalyst for corporate Bitcoin adoption will be Marathon Digital.
Marathon has $745M of cash ready to buy Bitcoin, and typically makes treasury/mining announcements at the beginning of every month.
LQwD is using funds from their $50M shelf offering issued earlier this year to buy this Bitcoin.
Reading between the lines on their financial reports, it looks like the majority of all money they raise will go towards buying Bitcoin.
Interestingly, they have already launched nodes on the Lightning Network, and aim to use a portion of their 150 BTC as liquidity on their Lightning node(s).
Their new Lightning service (https://lqwd.tech/) has launched, but seems to be geared to institutions right now. They recently partnered with Breez, but terms/fees were not disclosed.
Interesting comment from Biden below. The Fed often mentions their dual mandate of achieving stable prices and full employment.
Now, it looks like "low inflation" will be one of their new talking points.
“I’m confident that Chair Powell and Dr. Brainard’s focus on keeping inflation low, prices stable, and delivering full employment will make our economy stronger than ever before,” Biden said in a statement Monday.
This is playing out exactly as Pierre described...
"Bitcoin's historical return is ~500% per year. Even if investors expected future return is 1/10th of that, the central bank would have to increase interest rates to unconscionable levels to break the [speculative] attack.
The result is evident: everyone would flee the Rupee and adopt bitcoins, due to economic duress rather than technological enlightenment. This example is purely illustrative, it could happen in a small country at first, or it could happen simultaneously around the world.
Who leverages their balance sheet and how is impossible to predict, and it will be impossible to stop when the dam cracks."
Agreed, and this $500M of Bitcoin will give them some really meaningful BTC exposure.
Public debt in El Salvador is only $19 billion today. A 10x jump in the price of Bitcoin over the next 5 years could help pay off ~25% of the entire country's debt burden.
That would be a game changer for highly-indebted countries everywhere.
Seems like it will be quite some time before the protocol is implemented:
"This initial draft of the whitepaper is meant to establish a conceptual understanding of the high-level design of the proposed tbDEX protocol. It should not be considered complete or final. It represents a proposed design for public comment.
Future revisions of the whitepaper will address incomplete elements and currently unforeseen issues or challenges.
After acceptance of the final protocol design, a tbDEX Protocol Specification will be developed and published. Next, a standard-comformant, open source reference implementation and SDK for wallets will be developed, as well as a reference implementation of the PFI Node software."
Does anyone have any guesses how long this process might take? Months? Years?
Yeah, one interesting benefit is that they now have the ability to tap into capital markets in a way that is far less expensive than if they were private.
Ex. they recently announced a $50M shelf offering, which allows them to issue up to $50M of securities (equity, debt, options, etc...). So far they've issued $8M of shares, and have used the proceeds to buy more Bitcoin.
Neat way to get access to cheap financing to buy more Bitcoin.
Canada has a few junior stock exchanges that allow for companies to go public very early in their life cycle, I think this is one of those scenarios
I believe this is their first real product - they only did $15k of revenue in Q2
10/10 podcast, so much info it's worth re-watching a few times.