Simply put
- MicroStrategy is on a mission to become one of the largest corporate holders of Bitcoin, aiming for 3-7% of its total Bitcoin supply. They also plan to raise $4.2 billion by offering preferred stock.
- Metaplanet has announced a significant move, intending to spend $3.7 billion on Bitcoin to accumulate 210,000 BTC by 2027.
- Coinbase has faced a setback, reporting a 25% drop in revenue to $1.5 billion in the second quarter. Interestingly, XRP has overtaken Ethereum as a leading driver of trading revenue.
Public keys are weekly summaries. This reflects major crypto companies that are publicly traded.
This week: strategies are expanding, Metaplanet’s Bitcoin plans are ramping up, while Coinbase deals with revenue issues affecting altcoin dynamics.
Strategy doubles
The goal is for Bitcoin Treasury to emerge as the largest Corporate Treasury so far.
This ambition could mean surpassing Berkshire Hathaway, which has about $328 billion in cash and equivalents as of the first quarter.
When Warren Buffet’s company releases its second quarter financials soon, it will provide clearer insights into its cash reserves.
To succeed, these companies need their BTC holdings to exceed double their current values. If Bitcoin hits its expected $225,000 target by the end of 2026, the gains could significantly help.
It remains uncertain whether MicroStrategy will halt its Bitcoin buying, but with 628,791 BTC, a valuation of $141 billion is possible if profits align next year.
Nonetheless, Michael Saylor has expressed that they haven’t finished purchasing Bitcoin. In a recent CNBC interview, he mentioned aiming for up to 7% of their Bitcoin supply.
“I’m not sure we will capture all of it,” he remarked, suggesting a range of 3-7% seems reasonable. “Owning it all isn’t our goal.”
To support this vision, the company indicated plans to raise an additional $4.2 billion for Bitcoin acquisitions this year.
Metaplanet’s Bitcoin Orbit
Metaplanet, considerably smaller than MicroStrategy, closely mirrors its Bitcoin purchasing strategy.
This company unveiled plans for a $3.7 billion stock issue to finance Bitcoin acquisitions. This preferred stock is set to yield dividends of up to 6%.
Metaplanet is working toward achieving this stock issuance within two years.
It’s worth noting that Japanese firms have previously aimed for a minimum of 210,000 BTC by the end of 2027, requiring a scaling of their current holdings by twelve times.
If Metaplanet could achieve these numbers today, it would rank just behind MicroStrategy in terms of corporate Bitcoin ownership.
The company’s stock price has surged impressively by 207% and even reached 313% year-to-date. Despite this, recent developments may not have been particularly encouraging for investors.
Traded as MTPLF in OTC markets and 3350 on the Tokyo Stock Exchange, Metaplanet’s shares dropped 7.65% on Friday, closing at $7.18 or about 1,063 yen.
Coinbase runs out of Alt gas
Coinbase’s revenue issues revealed XRP’s recent dominance over Ethereum in trading revenue.
The San Francisco exchange reported a revenue of $1.5 billion, reflecting a 25% decline from the previous quarter and falling short of analysts’ expectations.
Despite the downturn, XRP saw strong trading traction, making up 13% of consumer trading revenue compared to Ethereum’s 12%.
Is it time to be concerned about Coinbase? Well, analysts at Bernstein don’t think so.
They labeled the second quarter as crucial in their latest report, maintaining a favorable rating and a price target higher than the current trading price.
“Beyond Bitcoin, improvements in crypto market structure driven by Solana and other blockchains are likely to influence trading volumes positively, already shown in our projections,” they noted.
Additionally, optimism surrounds Coinbase’s partnership ventures with major banks, including a recent deal with JP Morgan.
Other keys
- Tokenization, tokenization: Despite the controversy surrounding tokenizing private company stocks, Robinhood’s CEO has pointed to a 45% revenue increase in the second quarter.
- Skip AI: Bitcoin Miner Mara Holdings has drawn criticism for its focus solely on Bitcoin mining, with analysts suggesting a lack of diversification.
