The ARK Innovation ETF sold 203,659 Block Inc. shares on Tuesday and 323,332 shares of the same company on Monday.
Ark also bought $9.6 million of Robinhood shares and sold $20.6 million of Block stock as the firm continued rebalancing its fund weightings.
Strategy (formerly known as MicroStrategy) has unveiled plans to raise $21 billion through its Series A preferred stock (STRK) to acquire more Bitcoin. According to a March 10 statement, the company had entered a sales agreement to issue and sell shares of its 8.00% Series A perpetual strike preferred stock at the market (ATM). The shares will […]
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The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Strategy intends to use the proceeds for general corporate purposes, including the acquisition of bitcoin.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Bitcoin (BTC) has experienced one of its largest price pullbacks in recent times, plunging from $96,131 on February 24 to a potential local bottom of $85,418 today. The decline triggered liquidations exceeding $1.5 billion, with the majority coming from long positions. Is It Time To Buy Bitcoin? The recent price action suggests that the crypto market is reacting to bleak macroeconomic conditions, driven by US President Donald Trump’s proposed trade tariffs and a hawkish stance from the US Federal Reserve (Fed). The total crypto market cap has now fallen below $3 trillion for the first time since November 2024, signaling growing bearish sentiment around risk-on assets. Major altcoins like Ethereum (ETH) have fallen by more than 10% in the past week. Related Reading: As Bitcoin Sell Pressure Fades, Could A Local Bottom Be Forming? Analyst Explains However, despite yesterday’s downturn, overall sentiment toward the crypto market appears to be improving. In an X post, Andre Dragosch, European Head of Research at Bitwise, suggested that the worst may be over for BTC. Dragosch shared the following Cryptoasset Sentiment Index, which is flashing a strong contrarian buy signal for the flagship cryptocurrency. The analyst added: Wide-spread bearishness among flows, on-chain, and derivatives data implies that downside risks are fairly limited. Risk-reward appears to be quite favourable at these prices. To further illustrate the level of bearishness surrounding risk-on assets, Dragosch highlighted that US spot Bitcoin exchange-traded funds (ETFs) recorded their single largest daily net outflow on record yesterday. Data from SoSoValue supports this assessment. Additionally, the Crypto Fear & Greed Index remains in bearish territory. Dragosch noted that sentiment levels are “already as bearish as during the macro capitulation last August.” At that time, BTC made a local bottom at $49,000 before rallying to multiple new all-time highs (ATHs). On a more optimistic note, on-chain data indicates that crypto whales are capitalizing on market uncertainty. According to crypto analyst Ali Martinez, long-term holders have accumulated nearly 20,400 BTC following the recent sell-off. Strategy Falls With BTC Crash In line with BTC’s decline, Strategy stock MSTR has also suffered, plummeting 55% from its peak of $543 in November 2024. At the time of writing, MSTR trades at $249, down approximately 29% over the past month. Despite the overall bearish sentiment, recent analysis comparing BTC’s returns to other assets, such as gold and stocks, shows that while Bitcoin’s cumulative annual growth rate has slowed in recent years, it continues to outperform traditional asset classes significantly. Related Reading: Is Bitcoin Showing Early Signs Of Bullish Divergence? Analyst Explains However, not all analysts share Dragosch’s optimism. In stark contrast, Standard Chartered recently warned that BTC may face further downside before resuming its bullish trajectory. At press time, BTC trades at $87,086, down 1% in the past 24 hours. Featured image from Unsplash, Charts from X, Yahoo! Finance and TradingView.com
Shares of Strategy (NASDAQ: MSTR) have dropped by over 55% from the November 24 high at $543 to around $250. With the software intelligence firm now holding approximately 499,096 Bitcoin—worth around $44 billion at current prices—market participants are wondering whether the company could ever face a forced liquidation of its massive Bitcoin treasury. On Tuesday, analysts from The Kobeissi Letter (@KobeissiLetter) took to X to provide a comprehensive thread analyzing this scenario. Here’s what they had to say: “The MicroStrategy liquidation: As MicroStrategy, MSTR, falls over -55%, many are asking about ‘forced liquidation.’ The company now holds $44 BILLION worth of Bitcoin, could they be forced to sell it? Is liquidation even possible?” Is A Forced Bitcoin Liquidation Possible? According to The Kobeissi Letter, MicroStrategy’s Bitcoin holdings total approximately 499,096 BTC, currently worth $43.7 billion. The firm’s average cost basis sits around $66,350 per Bitcoin. This naturally raises concerns about what happens if Bitcoin’s price were to drop significantly below MicroStrategy’s average entry point. “Let us begin by stating that this isn’t the first time liquidation is mentioned. MSTR has been buying Bitcoin for years and there have been MULTIPLE bear markets since then. This includes the 2022 bear market when Bitcoin fell from ~$70K to ~$15K. Is this time different?,” the analysts write. Related Reading: Market Signals Point To Caution: Bitcoin’s 3-Day Chart Shows Potential Sell Alert Critically, MicroStrategy’s operations rely on raising capital—often through convertible notes—to buy more Bitcoin. The Kobeissi Letter points out that MicroStrategy currently carries about $8.2 billion in total debt for its $43.4 billion Bitcoin holdings, representing a roughly 19% leverage ratio. Much of this debt is held in convertible notes maturing around 2028. “Just about the only way a ‘forced liquidation’ occurs if there is a ‘fundamental change’ at the company. This COULD require MSTR to liquidate Bitcoin holdings if an early redemption is called on the notes,” the experts from The Kobeissi Letter argue. A “fundamental change” could include corporate bankruptcy, or a vote by shareholders to dissolve the company—both scenarios that The Kobeissi Letter stresses are remote under the current structure. Michael Saylor, MicroStrategy’s Executive Chairman and prominent Bitcoin advocate, holds 46.8% of the company’s voting power, meaning he could effectively block decisions leading to liquidation. Related Reading: Bitcoin Crashes: Experts Warn Of 6-Month Slump To $73,000 Despite the steep share price decline, The Kobeissi Letter suggests that an outright forced liquidation is “highly unlikely.” The structure of the convertible notes and MicroStrategy’s ability to raise capital give the firm significant flexibility. Even so, if Bitcoin were to experience a protracted and severe price drop—well below its current levels—MicroStrategy might face challenges in servicing its debt and raising fresh capital: “However, what if these convertible bonds remain below the conversion price at maturity, beginning in 2027+? For this to happen, Bitcoin would need to fall well over 50% from current levels and remain there.” Michael Saylor has repeatedly brushed off the liquidation scenario. According to The Kobeissi Letter: “Michael Saylor was asked about liquidation recently. His answer was that even if Bitcoin fell to $1, they still would not get liquidated. They would ‘just buy all of the Bitcoin.’ While this sounds good in theory, the convertible note holders cannot be forgotten.” MicroStrategy’s business model—raising funds to buy Bitcoin, potentially driving the price higher, and then issuing new shares at a premium—depends on investor confidence. If shares continue to falter, or if Bitcoin dives well below MicroStrategy’s average entry price, the firm’s ability to attract capital could be severely tested: “We are now witnessing the first ‘bear market’ in MicroStrategy since it gained popularity in 2024. The question becomes: will investors continue to buy the dip here? Michael Saylor says ‘Bitcoin is on sale.’” However, with Saylor’s voting power and the long-dated convertible notes, a forced liquidation seems highly unlikely in the near term. At press time, BTC traded at $89,245. Featured image created with DALL.E, chart from TradingView.com
The prior rise in memecoin activity was driven by a pushback against the regulatory crackdown on utility token and NFT projects, they said.
The latest bitcoin acquisitions follow the completion of Strategy's latest $2 billion zero-coupon convertible note offering.
Strategy, previously known as MicroStrategy, is pushing ahead with its aggressive Bitcoin accumulation strategy. According to a Feb. 20 statement, the company plans to acquire an additional $2 billion worth of Bitcoin using proceeds from its latest convertible notes offering. At the same time, Japanese firm Metaplanet, a Strategy copycat, has reached a key milestone […]
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The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Institutional investment managers with at least $100 million in equity assets under management recently filed Q4 2024 13F reports.
Strategy acquired a total of approximately 258,320 BTC in 2024 and currently holds 478,740 BTC worth over $46 billion.
Strategy made a profitability warning, particularly if there is a significant decrease in the market value of its bitcoin holdings.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
The company now holds a total of 610.3 BTC, worth nearly $60 million at current prices, acquired at an average price of $98,312 per bitcoin.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
The bitcoin acquisitions follow Strategy's latest sale of shares during the same period, equivalent to the same value.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Michael Saylor’s Strategy has fully embraced its position as a bitcoin treasury company and Wall Street remains bullish on MSTR stock.
Strategy (formerly known as MicroStrategy) has reported its largest quarterly Bitcoin acquisition to date, marking a significant expansion of its holdings in the fourth quarter of 2024. In the last quarter of 2024, the firm purchased 218,887 BTC, bringing its total holdings to 447,470 BTC as of Dec. 31. The company has made additional Bitcoin […]
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Big Tech has a great flow of cash on hand. Currency devaluation makes them lose purchasing power. Is Bitcoin a treasury solution to fight against inflation? Amazon is the next to decide.
Bitcoin traders expect BTC to rally if the Fed rolls out a 0.50% rate cut, but hedging these bullish positions is also necessary. Here is how it's done.