It’s Friday! In today’s newsletter, Michael Saylor’s MicroStrategy is valuing the Bitcoin banking endgame at $1 trillion, while Paradigm has invested $20 million in the company behind Layer 2 Blockchain Odyssey, a blockchain analytics platform. arkham 
ARCM
+14.94%
Meanwhile, Mt. Gox postponed the repayment deadline to 2025.
Let’s get started.
MicroStrategy estimates the final value of Bitcoin Bank at $1 trillion.
Michael Saylor said MicroStrategy’s ultimate goal is to become the world’s leading Bitcoin bank with the potential to reach a $1 trillion valuation.
- “(Bitcoin
BTC +3.25%
) is the most valuable asset in the world. The end game is to become a leading Bitcoin bank or commercial bank. Or you could call it a Bitcoin finance company,” Saylor told analysts at research and brokerage firm Bernstein.
- The company’s strategy is based on the long-term belief that Bitcoin is the best deflationary currency. Bitcoin currently accounts for 0.1% of global financial capital, and Michael Saylor expects this figure to rise to 7%, which could lead to a price per Bitcoin of $13 million by 2045, Bernstein said. ) explained digital asset leader Gautam Chhugani in a note to clients.
- If the U.S. capital markets allow MicroStrategy to raise funds through debt, equity, and other means, MicroStrategy will happily scale and arbitrage between them and Bitcoin. Saylor expects average annual growth of 29% in his “base case” scenario. said.
- Chughani also noted Saylor’s view that Bitcoin’s underlying growth yield is attractive enough that it can continue to make money through capital market arbitrage and not lend out Bitcoin like the traditional banking model.
- “I think it would be a better idea to borrow $10 billion from people who want to lend, give them a 100 basis point higher yield, and then lend it to Bitcoin at 30-50% interest with no counterparty risk,” Saylor explains. I did it.
- “Once you overcome volatility and learn how to manage it, my bearish scenario is for Bitcoin to only grow 22% per year over the next 10 years. Who wants to pay 22% interest?”
- MicroStrategy has been aggressively acquiring Bitcoin since 2020, and its current holdings of 252,220 BTC are worth more than $15 billion, at a total cost of about $9.9 billion and $4 billion in debt.
- “We keep buying more and more. Bitcoin will reach millions of dollars per coin. Then we will create a trillion-dollar company,” Saylor said.
Paradigm invests $20 million in companies supporting layer 2 blockchain Odyssey.
Paradigm invested $20 million in Ithaca, a spin-off of the venture capital firm that is building a layer 2 blockchain called Odyssey.
- Paradigm’s CTO, Georgios Konstantopoulos, will continue his role at Paradigm and assume the role of CEO of Ithaca, and Paradigm co-founder Matt Huang will serve as Chairman of Ithaca.
- “Think of Ithaca as a company that is building a full stack of products and tools that allow developers to launch faster and consumers need less friction,” Konstantopoulos told The Block.
- Built using the OP stack, Odyssey is currently live on testnet and will deliver advanced features of Ethereum’s future roadmap, including a more robust smart contract wallet for easier user onboarding.
Arkham plans to launch a cryptocurrency derivatives exchange.
Related indices
Arkham, a popular blockchain analytics platform, plans to launch a cryptocurrency derivatives exchange in November targeting retail investors in a bid to compete with giants like Binance.
- However, the exchange will not be available to U.S. customers and will be located in the Dominican Republic, where Arkham is currently in the process of obtaining a free trade zone license, Bloomberg reported, citing sources familiar with the matter.
- Arkham CEO Miguel Morel noted earlier this year that the company plans to explore new ways to monetize the platform in 2024, but that core features will remain free.
- Arkham’s native token, ARKM, is trading at $1.53, up about 18% over the past 24 hours, according to The Block’s Arkham Price Page.
Crypto Whale Loses $35 Million in Phishing Attack
The cryptocurrency whale lost about $35 million worth of tokens to a phishing attack on the Blast network late Thursday.
- Scam Sniffer, a cryptocurrency fraud prevention solution, reports that attackers tricked victims into unknowingly signing fraudulent ‘permission’ messages, which resulted in funds being drained from their wallets.
- The whale lost 15,079 Few Wrapped Duo ETH (fwDETH), an Ether derivative issued by DeFi protocol Duo on the Blast network, during the incident.
- According to data from DexScreener, the attack caused the value of fwDETH to drop more than 90%, from $2,000 to $100, before recovering to around $1,200.
China’s fiscal stimulus announcement this Saturday could lead to moves in the Bitcoin market.
China’s fiscal stimulus announcement this Saturday could potentially boost cryptocurrency markets by injecting new liquidity into risky assets, according to several analysts.
- Bitfinex analysts expect Bitcoin price volatility to increase following this announcement, and the market may be spooked if the action is more aggressive than expected.
- “Easing monetary and fiscal conditions will drive riskier assets to bid, and cryptocurrencies are likely to benefit,” Alex Tapscott, managing director of the digital assets group, told The Block. .
- Meanwhile, analysts at ETC Group noted that global money supply has hit record highs, which has historically been correlated with Bitcoin’s bullish trend.
Looking forward to next week
- UK CPI inflation figures are released on Wednesday. On Thursday, eurozone CPI figures and the ECB’s latest interest rate decision will be released, along with US jobless claims data.
- US FOMC members Mary Daly and Adriana Kugler are scheduled to speak on Tuesday.
- The Future Blockchain Summit and Avalanche Summit are taking place over the next 7 days.
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