Summary Just as alchemists of old tried to turn lead into gold, today's crypto entrepreneurs attempt to create money for nothing with supposed "free money glitches." This is most apparent in Microstrategy, now simply renamed "Strategy". MSTR was the subject of a retail trader speculative blitz last fall that is now being unwound. It's not alchemy– it's a wealth transfer from retail investors to corporations and sophisticated institutional investors. Why MSTR still only has 59 cents in Bitcoin for each dollar in stock, and why I eventually expect it to trade at a discount. The ancient and medieval worlds were obsessed with the idea of turning lead into gold . This was one of the central quests of the alchemists, who would raise money from the local lords, or the king if they were lucky. But we know now that you can't turn lead into gold, at least not without a full-scale particle accelerator and a willingness to lose tons of money for the amount of gold you're going to get. The corporate finance world of today practices a different kind of alchemy, this time using the ones and zeros that underpin the financial system. Today, we have digital gold in Bitcoin ( BTC-USD ). Like gold, it's worth a lot of money and is expensive to mine. Also like the gold rushes of bygone centuries, Bitcoin drew in prospectors from far and wide looking for an easy fortune. This was apparent in 2021 when the Bitcoin craze reached full blast. Claims of financial alchemy are also back. Last year, proponents of MicroStrategy (now S trategy) ( MSTR ) argued that the company had done what the alchemists of old couldn't do– earn Bitcoin for nothing. I argued otherwise, publishing on November 18th to beware of the hype and buy Bitcoin instead . I was far from alone . MSTR's premium to Bitcoin peaked on November 20th. What Is Going On At Microstrategy? Since November, the company has changed its legal name from Microstrategy to just "Strategy." While it's a brilliant (and hilarious) exercise in branding, the stock is down about 25% since then, vs. 9% for Bitcoin. Investor interest in MSTR ebbs and flows, but this trend is very likely to continue, albeit with big swings in both directions. A few weeks ago, the spread was significantly higher than it is now. All the while, MSTR is aggressively selling stock and buying Bitcoin. I'll make a simple argument here. You should do what MSTR does and not what they say. That means sell MSTR (if you own it) and buy Bitcoin instead. It's simple supply and demand, and the trade works because the market value of MSTR is still higher than its Bitcoin. Therefore, MSTR can keep issuing stock to buy Bitcoin. It's not actually alchemy, rather, it's a wealth transfer that is set up between retail investors overpaying for MSTR and the company buying Bitcoin on the open market. History shows that this is not sustainable. A similar trade came into play with the Grayscale Bitcoin Trust ( GBTC ), which traded at a huge premium to its Bitcoin, and then later at a huge discount. I made money on that trade by simply exercising common sense. More on this later. The cumulative price change in MSTR vs. BTC over the last year is below. I expect this gap to continue to close and eventually go negative to account for the substantial operating costs that MSTR has and Bitcoin itself doesn't. Data by YCharts As of the latest tally , MSTR has 528,185 Bitcoins. As of yesterday's close, the market price of Bitcoin is $83,825. That means MSTR's Bitcoin stash is currently worth about $44.3 billion. But MSTR's market cap is $75.4 billion. Knowing the math here is important so that you can do it yourself shorthand in the future. Currently, there's only about 59 cents in Bitcoin for each dollar of MSTR stock. That means that MSTR stock is only worth about ~$170, vs. a market price of ~$288. Going forward, I'd expect that the value of MSTR's stock will go down, while the value of the Bitcoin per share should go up a little more. In a weakening economy, Strategy is not likely to find an endless supply of people willing to pay a premium to their NAV, especially since more and more of them are getting burned by the falling stock price. Is MSTR A Free Money Glitch? In short, no. Retail investors drove the price of MSTR skyward last fall, and the company responded by selling as much stock as was humanly possible to them. Those who bought at the peak are already nursing some substantial losses, which they would have largely avoided by buying Bitcoin. A few points on MSTR: Convertible debt is not free money. For one, they dilute shareholders, and for two, the way that institutions trade them is to do convertible arbitrage by delta hedging, meaning they buy the debt and short the stock. Decades of research show that this works a lot like the company simply selling stock in the first place. While Strategy CEO Michael Saylor's decision in 2020 to issue convertible debt to buy Bitcoin was brilliant, we should understand it for what it was– an all-in bet on Bitcoin with borrowed money. This is not the same thing as MSTR discovering a corporate finance loophole that gives them a free money glitch. Selling shares is not free money. Basic supply and demand here– when MSTR sells stock to investors, it creates supply, which pushes the price of MSTR stock down in equilibrium. When the company buys Bitcoin, it creates demand for Bitcoin and pushes the price of Bitcoin up in equilibrium. These trades with MSTR are getting quite large, this is likely to ramp up this trend. Preferred stock is definitely not free money. MSTR recently raised over a billion dollars in preferred stock in two issues , one that had a roughly 11.7% yield at issue ( STRF ), and another with a convertible option paying 9.5% ( STRK ). From a company perspective, borrowing money at 11.7% is expensive, and maybe a sign that the market isn't going to lend them endless money. From an investor perspective, these are a little more interesting as you can get higher on the capital stack and can potentially benefit from the ongoing dilution. Of these, I think STRF is the most interesting, paying 10.7% after catching a bid off the offering price. The risks of the preferred are that the company's only current sources of cash flow are investing in Bitcoin and issuing stock, but I think it could make sense as a short-term yield play in some cases. It's still obviously pretty risky, though. I estimate that MSTR currently has an operating income of -$1 billion to -$2 billion per year. Last year they lost $1.85 billion . If you wanted to invest in a Bitcoin fund, you'd likely rather not have it be attached to a money-losing business with 1500+ employees . If we were to compare MSTR to an ETF on an apples-to-apples basis, that's effectively an expense ratio of 4% of NAV. Can MSTR make it up with leverage? Perhaps a little, but MSTR has very limited ability to borrow money to buy Bitcoin, except through convertible debt, which the studies show functions much like selling equity. If you consider the preferred stock as borrowing, then they're paying double-digit interest rates to buy Bitcoin. Chances are that you could borrow cheaper yourself. I personally hold the opinion that if retail investors want to punt on MSTR, then they should be allowed to. At the same time, retail investors don't really have the full story of how corporate finance works, in particular with MSTR. MSTR Should Probably Trade At A Discount To Its Bitcoin What is a fair price for a company that has a money-bleeding underlying business and a big stash of Bitcoin? I'd argue that the fair price is a discount to NAV. We clearly saw this in GBTC, which had a 2% management fee and traded at a steep discount to NAV before it converted to an ETF. In fact, for much of MSTR's history, it has traded at a discount to its Bitcoin. The graph below covers MSTR vs. the value of its Bitcoin from 2020 to December 2024, from an excellent Substack piece by Sumit's Investment Takes: MSTR Vs. Its Bitcoin (Substack) To me, this is telling that MSTR's rise in price is not alchemy. Rather, investors got carried away in a fad in 2024 that is now correcting. In other words, this is not a free money glitch. GBTC Premium/Discount (Substack) Here we see the same dance in GBTC, which traded at a 100% premium and then a 50% discount to its Bitcoin. I bought it at a discount and sold it at par. For MSTR, the same playbook would necessitate selling at a premium and buying Bitcoin. More evidence that Strategy might not deserve to trade above NAV is the market's reaction to GameStop ( GME ) pulling out the same playbook last month. The market didn't love GameStop issuing convertible debt to finance Bitcoin purchases last month– the stock is down about 7% over the last month and 20% since the offering. In many ways, GME is more stable than MSTR, for example, the operating losses at GME are much, much smaller , and the company has much more cash as a percentage of its share price. If you're thinking critically about all of this, it doesn't really add up. Bottom Line You don't need an expensive middleman to buy Bitcoin. The iShares Bitcoin Trust ( IBIT ) currently has about $50 billion in assets with fees of 0.25% per year or less. For reasons unknown, it's still less popular than Microstrategy, a.k.a. "Strategy," with a market cap of $75 billion with a massive amount of dilution and underlying losses. This is totally upside down, and I expect the recent losses for MSTR shareholders to continue as the company keeps blasting away with new equity offerings. I wouldn't touch MSTR. If your intention is to buy Bitcoin, cut out the middleman and buy it at the fair market price through an ETF.
Are you keeping a close eye on the Forex markets? In the fast-paced world of currency trading, staying ahead of the curve is crucial. A recent report from Bank of America (BofA) is sending ripples through the Forex market, particularly concerning the EUR/GBP currency pair. Their analysis points towards a significant downside risk for the Euro against the British Pound. What does this mean for traders, and what factors are driving this bearish EUR/GBP Forecast ? Let’s dive deep into BofA’s analysis and understand the potential implications. Decoding Bank of America’s Bearish EUR/GBP Forecast Bank of America, a global financial giant, has issued a cautionary note regarding the future trajectory of the EUR/GBP pair. Their analysts are signaling a potential weakening of the Euro against the Pound. This isn’t just a minor fluctuation; BofA suggests a considerable downside risk . But what exactly does this mean? In simple terms, BofA believes the EUR/GBP exchange rate is likely to decrease. This implies that for every Euro you hold, you’ll get fewer British Pounds in the future compared to now. For anyone involved in currency trading , or even those monitoring global economic trends, this forecast is a significant signal to consider. Why is Bank of America taking such a stance? Several factors are likely contributing to their analysis: Economic Divergence: The Eurozone and the UK economies are currently on different paths. The Eurozone is grappling with challenges like energy price shocks, inflation concerns, and geopolitical uncertainties related to Eastern Europe. On the other hand, the UK, while also facing economic headwinds, might be perceived as slightly more resilient in certain aspects or benefiting from specific policy decisions. This economic divergence can put downward pressure on the EUR/GBP pair. Monetary Policy Differences: Central banks play a crucial role in shaping currency values. The European Central Bank (ECB) and the Bank of England (BoE) have different approaches to monetary policy. Differences in interest rate hikes, quantitative tightening, and forward guidance can significantly impact currency valuations. If the BoE is perceived as more hawkish (aggressive in fighting inflation) than the ECB, it could strengthen the Pound against the Euro. Geopolitical Risks: Ongoing geopolitical tensions, particularly in Europe, can weigh heavily on the Euro. Uncertainty and instability often lead investors to seek safe-haven currencies, and while the Euro is a major currency, the Pound might be seen as comparatively less exposed to certain regional risks. Technical Analysis and Market Sentiment: Beyond fundamental factors, technical analysis of price charts and overall market sentiment also play a role. BofA’s analysts likely consider technical indicators and market positioning when forming their Forex market outlook . If technical patterns suggest a bearish trend for EUR/GBP, it reinforces the fundamental analysis. Impact on the Forex Market and Beyond A bearish EUR/GBP forecast from a major institution like Bank of America has widespread implications: For Forex Traders: Traders focusing on the EUR/GBP pair need to be acutely aware of this downside risk. It suggests potential opportunities for short positions (betting on the price to go down) or adjusting existing long positions to mitigate potential losses. Risk management becomes paramount in such scenarios. For Businesses: Companies engaged in trade between the Eurozone and the UK need to consider the potential exchange rate fluctuations. A weaker Euro against the Pound can impact import and export costs, profitability, and overall financial planning. Businesses may need to hedge their currency exposure to protect against adverse movements. Broader Market Sentiment: BofA’s analysis can influence overall market sentiment towards the Euro and the Pound. Other financial institutions and investors may take note of this forecast and adjust their own outlooks and positions accordingly. This can create a self-fulfilling prophecy to some extent, where bearish forecasts contribute to actual downward pressure on the currency pair. GBP/EUR Exchange Rate Implications: Remember, currency pairs are relative. If EUR/GBP is expected to decline, it directly implies that the GBP/EUR exchange rate is expected to rise. Those looking to convert Pounds to Euros might find it becoming more expensive. Navigating the Forex Market: Actionable Insights So, what should traders and investors do in light of this Bank of America analysis ? Stay Informed: Keep abreast of the latest economic data releases, central bank announcements, and geopolitical developments from both the Eurozone and the UK. Market conditions are dynamic, and forecasts can evolve. Conduct Your Own Research: Don’t solely rely on one institution’s analysis. Explore forecasts from other banks, independent analysts, and use your own research tools and strategies. Implement Robust Risk Management: In volatile Forex markets, risk management is non-negotiable. Use stop-loss orders, manage position sizes carefully, and avoid over-leveraging. Consider Diversification: Don’t put all your eggs in one basket. Diversify your trading portfolio across different currency pairs and asset classes to mitigate risk. Understand Technical Levels: Pay attention to key technical support and resistance levels for EUR/GBP. These levels can provide clues about potential price movements and help in setting entry and exit points for trades. Is This a Buying Opportunity for the Pound? While BofA’s report highlights downside risk for EUR/GBP, it can also be interpreted as a potential buying opportunity for the British Pound. If the forecast materializes, and the Pound strengthens against the Euro, those holding Sterling assets or looking to invest in the UK economy might benefit. However, it’s crucial to remember that Forex markets are inherently volatile and influenced by numerous factors. No forecast is guaranteed, and market conditions can change rapidly. Let’s consider a scenario. Imagine you are a crypto investor who also dabbles in Forex. You hold some Euros and are considering converting them to British Pounds or perhaps investing in UK-based crypto projects. BofA’s EUR/GBP forecast might prompt you to consider making that conversion sooner rather than later, anticipating a potentially more favorable GBP/EUR exchange rate in the future. Conversely, if you were planning to convert Pounds to Euros, you might consider delaying that transaction, hoping for a more advantageous rate later on. The Dynamic Nature of Forex and Crypto Markets It’s important to note that both Forex and cryptocurrency markets are known for their volatility. Factors that influence traditional currency pairs can also indirectly impact the crypto space. For instance, changes in interest rates, inflation expectations, and overall risk sentiment can affect both Forex and crypto asset valuations. Therefore, understanding the dynamics of the Forex market outlook , like BofA’s EUR/GBP analysis, can provide valuable context for navigating the broader financial landscape, including the world of cryptocurrencies. Conclusion: Navigating Forex Uncertainty with Vigilance Bank of America’s bearish outlook on EUR/GBP serves as a crucial reminder of the inherent uncertainties in the Forex market. While forecasts provide valuable insights, they are not guarantees. For traders and investors, the key takeaway is to remain vigilant, stay informed, and implement robust risk management strategies. Whether you are directly trading EUR/GBP or simply monitoring global economic trends, understanding these analyses helps you make more informed decisions in the ever-evolving financial landscape. The currency trading arena demands constant learning and adaptation, and being aware of expert opinions like BofA’s is a significant step in navigating its complexities. To learn more about the latest Forex market trends, explore our articles on key developments shaping currency valuations and global economic outlook.
As the cryptocurrency sector gains momentum in the political and regulatory arena, Mastercard is increasing its efforts to integrate blockchain technology into its payments ecosystem. The global payments giant is working to create a seamless network for digital asset transactions. “We’re bringing the scale and reach that we have to the space to make money flow between the two worlds in a simple way,” said Raj Dhamodharan, Mastercard’s vice president of blockchain and digital assets. He said there was a need for a user-friendly and compliant framework similar to mainstream peer-to-peer payment services like Venmo and Zelle in the United States. Related News: Tether Announces Massive Bitcoin Purchase - Becomes Sixth Largest BTC Holder A critical aspect of Mastercard’s initiative is its adoption of the Multi-Token Network, which aims to bring financial institutions into the blockchain-based ecosystem. The company has partnered with major banking institutions like JPMorgan and Standard Chartered to explore applications like cross-border payments and the tokenization of deposits and carbon credits. “Some companies in the traditional finance world are interested in entering this space because of the benefits technology offers and the new business models it can create,” Dhamodharan added. Mastercard’s ambitions extend to its broad consumer base of 3.5 billion cardholders worldwide. The company has launched more than 100 crypto-focused card programs, including credit, prepaid, and rewards cards that offer crypto incentives instead of traditional cash-back options. *This is not investment advice. Continue Reading: Payment Giant Mastercard Announces New Cryptocurrency Initiative
Ethereum regained its position as the leading decentralized exchange platform. Solana's trading volume declined significantly in March 2023. Continue Reading: Ethereum Reclaims Its Spot as the Leading DEX Platform The post Ethereum Reclaims Its Spot as the Leading DEX Platform appeared first on COINTURK NEWS .
GoMining is set to reshape institutional Bitcoin investment with its newly launched $100 million Bitcoin mining fund, aimed at professional investors. This fund distinguishes itself with a 2% annual management
The crypto economy climbed Tuesday, mirroring gains in equities, as markets moved in anticipation of President Donald Trump’s tariff blueprint, an event many have dubbed “Liberation Day.” Wall Street and Crypto Align Ahead of April 2 Trade Shake-Up Each time Trump introduced a new tariff idea during his tenure as the 47th U.S. president, financial
GoMining Launches $100M Bitcoin Mining Fund for Institutional Investors 💰Coin: Bitcoin ( $BTC ) $85,091.00
GoMining, a platform that allows users to mine Bitcoin ( BTC ) through data centers, is launching a $100 million Bitcoin mining fund for institutional investors. Custodied by Bitgo, the fund promises annual distributions from mining yield and a strategy that focuses on Bitcoin rewards and reinvestment. GoMining’s Alpha Blocks Fund comes as more companies have added Bitcoin to their balance sheets, capturing enthusiasm surrounding the resurgence of the world’s top cryptocurrency by market capitalization. Companies that have done so, including Japan’s Metaplanet and medical technology company Semler Scientific , have seen their stock prices increase. “Unlike passive equity investments, the Alpha Blocks Fund offers direct exposure to mined Bitcoin via a fully managed, compounding hashrate strategy,” a GoMining spokesperson told Cointelegraph. “BTC rewards are reinvested to increase the fund’s hashrate and improve miner efficiency — creating real, yield-driven outcomes. Our model is built for performance, not market sentiment, and integrates utility-based advantages that listed mining companies typically don’t offer.” According to a press release shared with Cointelegraph, GoMining Institutional operates with 7.3 Exahash of active hash power. Related: Is cryptocurrency mining still profitable in 2025? “This framework ensures compliance with relevant regulatory requirements and supports our focus on delivering institutional-grade exposure to Bitcoin mining yield strategies,” said the spokesperson, adding that retail users can access a separate digital mining product. The fund will charge a 2% flat annual management fee, with no performance fees applied. While GoMining’s Bitcoin fund caters to institutional investors, its flagship product is geared toward retail miners who may lack the funds to create a heavy-duty mining rig. In 2024, it revealed an attempt to gamify Bitcoin mining through the use of non-fungible tokens. Institutional investment in Bitcoin and other cryptocurrencies like Ether ( ETH ) has been on the rise since 2024, when the first cryptocurrency exchange-traded funds were launched in the United States. Regulatory clarity from Europe’s MiCA and the enthusiasm for digital assets in the United States might be changing institutional investors’ skepticism about cryptocurrencies. In March 2025, a report by Coinbase revealed that 83% of institutions are planning a crypto allocation . Magazine: AI may already use more power than Bitcoin — and it threatens Bitcoin mining
Investors keeping a close eye on XRP , Solana , and Bitcoin are starting to zero in on a new contender— MAGACOINFINANCE . With ove r $4.5 million secured and growing demand, this capped-supply token is becoming a focus for traders seeking fresh momentum. Its rise isn’t loud—but it’s consistent, and that’s catching attention.rd. CURRENT PRICE – $0.000245 – LISTING PRICE $0.007 -PRE-SALE SELLING OUT! MAGACOINFINANCE – EXCHANGE RUMORS HEATING UP MAGACOINFINANCE has exploded onto the scene, securing over $4.5 million in pre-sale funding at lightning speed. What sets it apart is more than just hype—this is a project built on solid fundamentals. A 100 billion token cap , integrated Decentralized Finance utilities, and smart contract backing are fueling investor confidence. And with whispers of imminent Tier-1 exchange listings circulating on crypto forums and analyst circles alike, many believe this could be the year’s Decentralized Financening early-stage crypto play. Its community is growing rapidly, pre-sale phases are closing faster than expected, and the limited supply structure has made every token allocation feel like a race to the finish. For those looking to get in before the curve, the window is shrinking by the hour. LIMITED TIME OFFER-GET 50% EXTRA BONUS WITH CODE MAGA50X Investors can still capitalize on one of the most generous pre-sale offers available. By using the promo code MAGA50X , participants will unlock a 50% token bonus on all purchases. This reward system won’t last long, especially with prices set to jump in the next stage. It’s early, it’s exclusive, and it’s moving quickly—don’t sit on this one. Quick Market Glance: SOL, DOT, KAS, APT Solana (SOL) – Trading at $127.11 , SOL is gaining adoption across Decentralized Finance and NFTs with its high-speed architecture. Polkadot (DOT) – At $3.95 , DOT offers strong interoperability across blockchain networks and steady developer support. Kaspa (KAS) – Priced at $0.06 , KAS stands out with its blockDAG structure, offering lightning-fast confirmations and scalability. Aptos (APT) – Currently $5.097 , APT boasts strong funding and a developer-friendly environment, making it a dark horse in Layer-1 competition. PRE-SALE SELLING OUT- JOIN THE BIGGEST PRE-SALE IN HISTORY! Conclusion With legacy watchers beginning to pivot toward early-stage projects, MAGACOINFINANCE is emerging as one of the most closely tracked names in the space. Its structure, scarcity, and community momentum offer a clear reason why—and with a 50% token bonus still available, the opportunity window is still open. For more information on MAGACOINFINANCE and to participate in the pre-sale, visit: Website: magacoinfinance.com Twitter/X: https://x.com/magacoinfinance The post XRP, Solana, and BTC Watchers Are Tracking MAGACOINFINANCE for Major Breakouts appeared first on TheCoinrise.com .
Memecoins have captivated the crypto world, but recent trends suggest stormy weather ahead. Dogecoin , Shiba Inu , and PEPE are under scrutiny as traders watch for signs of recovery. Will these popular coins bounce back, or is a deeper chill setting in? This article explores the current price outlook and potential for growth. Dogecoin: Recent Corrections and Key Levels for Future Moves The past month's performance saw a 16.41% decline, while the half-year change registered a strong 64.48% gain. The weekly drop of 5.58% marked short-term corrections during a broader rally that pushed the coin upward over six months. Price movements reflect volatility, with gains over time contrasted by recent setbacks, emphasizing shifts in market sentiment across different intervals. Current price ranges between $0.13 and $0.23, with key resistance at $0.28 and a second resistance around $0.38. Market activity indicates a balance where neither bulls nor bears firmly dominate, and trends appear sideways. Traders could look to initiate positions if prices bounce off support at $0.08 or break above resistance. Shiba Inu Price Analysis: Recent Declines and Key Levels Past performance shows a decline with a 5.65% drop over the last month and a more pronounced fall of 20.90% over six months. The price trajectory has struggled to hold upward momentum, reflecting a weakening trend during these periods. Price movement has been choppy with persistent downward pressure as seen in the recent monthly performance. Current levels indicate a narrow trading range between $0.00001 and $0.00002. The nearest resistance is at $0.00002 while support easily holds at $0.00001. Bears appear to be in control with the weekly drop of approximately 4.88% and a slightly bearish technical outlook, suggesting cautious trading between these boundaries. Pepe Price Update: Key Levels Amid Mixed Signals Pepe has experienced a 1-month decline of 1.90% and a significant 6-month drop of 19.57%. Recently, the coin saw a 1-week decrease of 6.75%, adding to its history of fluctuating between $0.00000522 and $0.00000921. These figures reflect ongoing difficulties in achieving short-term recovery while enduring prolonged downward pressure. Overall, the price behavior reveals that despite daily volatility providing some trading opportunities, the general trend has been negative over the past six months. Current levels indicate support at approximately $0.00000324 and resistance around $0.00001122, with an additional resistance at $0.00001522. The RSI stands at 48.23, suggesting market indecision, with bears having a slight edge. The price appears to be in a range-bound pattern, presenting potential trading opportunities by monitoring for bounces off support or breakouts above the nearest resistance level to signal a bullish shift. Conclusion DOGE , SHIB , and PEPE have seen significant price drops lately. However, there are signs that a rebound could be coming. Market dynamics and investor interest will play key roles. Strong social media support and community engagement often help these coins recover. Clear signals in the coming weeks will determine their short-term future. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.