MicroStrategy Ups Bitcoin Bond Sale to $500 Million

What’s another $100 million between friends?

Enterprise software firm MicroStrategy has upped its corporate bond sale, first announced yesterday, from $400 million to $500 million. The publicly traded company plans to use the revenue to purchase Bitcoin atop the 92,079 BTC it already holds.

According to a report from Bloomberg, which cites unnamed sources, MicroStrategy upped the sale after receiving $1.6 billion in bond orders from institutional investors eager to buy up the corporation’s debt in return for a yield of 6.125% in annual interest.

MicroStrategy’s sale of senior secured notes will allow the firm, led by Bitcoin bull Michael Saylor, to buy more BTC after the price of the digital asset dipped below $35,000. Just last month Bitcoin hit a record price of $63,501

While both numbers are above the average price MicroStrategy spent for its BTC, $24,450 per token, the declines this quarter have forced the company yesterday to take an impairment loss of $284.5 million. Thus, because Bitcoin’s price dropped in late May, the company’s official value has also dropped.

While investors are apparently interested in the bonds, MicroStrategy’s stock price closed down 2% today. Its existing bonds—$900 million in convertible notes it sold in February for over $100, also to purchase Bitcoin—fell slightly, to $65.


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Ethereum DeFi Activity Has Slowed Down to 2020 Levels

In brief

  • DeFi trading volumes and transaction numbers have dipped this month.
  • The decline correlates with DeFi token prices.
  • Transaction fees are also down.

Let’s start with the good news: Ethereum transaction fees, which have been growing larger, are back down to 2020 levels.

The bad news: That’s because demand for Ethereum and Ethereum-based DeFi protocols has fallen, along with prices, as partly evidenced by a 28% drop in Uniswap trades from a mid-May peak.

Ethereum transfer volume, as measured in dollars, has declined by 60% in two weeks, according to a recent report by Glassnode Insights.

That’s not all.

“By almost all on-chain activity metrics, the recent month has been a historically large decline, transitioning rapidly from booming on-chain economies at [all-time-high] prices, to almost completely clear mempools and waning demand for transactions and settlement,” wrote the analytics firm, referring to a paucity of queued transactions.

Glassnode also looked specifically at governance tokens for four decentralized finance (DeFi) protocols, which aim to allow people to lend, borrow or trade cryptocurrencies without going through financial intermediaries. The number of transfers—and the total value of those transfers—on Compound (COMP), Aave (AAVE), Uniswap (UNI) and Yearn Finance (YFI) have “dropped significantly” since May. 

“These metrics are simple yet reasonably effective as a high level gauge for mass investor sentiment and can be seen to map reasonably well to trends in price,” Glassnode wrote. Put simply, lower transaction demand correlates with lower price.

Indeed, the price of YFI is down 26% in the last month, Uniswap has lost 40% of its value, Aave has fallen 27%, and COMP is off a full 55%, according to data from Nomics.

Most DeFi projects probably aren’t too concerned, however. Uniswap transaction volumes are near a baseline established during DeFi Summer, said Glassnode, when interest in Ethereum-based tokens took off in mid-2020. And according to DeFi Pulse, the dollar value of the tokens locked into just those four protocols is more than $30 billion. That’s nearly twice the value of all DeFi protocols on January 1. 

Prices too are still up year-to-date. UNI tokens, for instance, are worth more than 300% more than they were at the start of the year.

Moreover, assuming liquidity in DeFi lending protocols and exchanges remains high, trading can now commence at much lower fees.

Average Ethereum transaction fees on May 30 stood at $4.82, their lowest rate since January 1; at their height, on May 19, the average fee was $71.72 as DeFi traders, NFT buyers, and others using protocols on the Ethereum blockchain tried to push through transactions on the congested network.

Maybe a few slow weeks isn’t so bad.


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Here’s When Cardano and Several Altcoins Will Rally, According to Crypto Analyst Michaël van de Poppe

Crypto trader and analyst Michaël van de Poppe is looking at the potential future price action of Cardano (ADA) and five low-cap altcoins.

In a new tweet, the crypto strategist tells his 335,100 followers that he’s keeping a close watch on Cardano. Amid weakness in the broader crypto markets, the smart contract platform continues to flash bullish signals against Bitcoin (ADA/BTC).



“Still showing much strength and in a bull cycle. I’m expecting a bullish continuation towards the next region around 6,200 satoshis (0.000062). This would include further strength on the USD pair, too.”

Source: Van de Poppe/Twitter

At time of writing, ADA/BTC is trading at 0.000046, indicating a potential gain of over 34% if the pair hits the trader’s target next month.

Next up is SXP, the native asset of decentralized finance (DeFi) ecosystem Swipe. According to Van de Poppe, SXP is gearing up for a strong 86% rally before June expires from its current price of $1.94.

“This one is building up strength, too (especially the BTC pair). That BTC pair has to break above the 100-day and 200-day moving averages. If that happens, we’ll see this continuation here, and then we’re back to pre-crash levels.”

Source: Van de Poppe/Twitter

The third coin is Waves, a blockchain platform that allows users to create, launch and trade their own crypto tokens. According to Van de Poppe, Waves is ready to ignite a 35% move in its Bitcoin pair (WAVES/BTC) from its trading price of 0.00042.

“This one holds on to support and acting above the 100-day and 200-day moving averages. Therefore, I’m assuming we’ll see a retest of 0.00057.”

Source: Van de Poppe/Twitter

The fourth coin on Van de Poppe’s radar is Fantom (FTM), a distributed ledger technology that aims to power smart cities. The trader expects Fantom to dip against Bitcoin (FTM/BTC) before launching a 74% rally by July.

“Support test, now flipping for further continuation. Breaking above 1,000 satoshis (0.00001) would give 1,300 satoshis next (0.000013).”

Source: Van de Poppe/Twitter



Mobile data exchange crypto asset Dent is also on the trader’s list. He expects the coin to continue its base-building phase before meteorically rising over 287% from its current value of $0.031. Van de Poppe expects Dent to hit his target in August.

“So far, so good. This one is probably going to accumulate for some time, as it just had a giant impulse wave.”

Source: Van de Poppe/Twitter

Van de Poppe is also watching blockchain gaming platform Enjin Coin (ENJ). According to the trader, ENJ is ready to start a new bull cycle as he highlights key support areas of $1.29 and $0.67.

Source: Van de Poppe/Twitter

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Bitcoin’s Monetary Superiority Is Guaranteed By Physics

The properties inherent to Bitcoin are deterministic, not probabilistic, and rely on the natural laws which make up our world.

Everything in the (observable) universe is ultimately governed by the laws of physics. This includes everything from observable phenomena at the cellular and molecular level to what we can observe in the most distant of galaxies. At its most simplistic level, this centers around energy and energy as a state of matter, something that cannot be created or destroyed, only transferred between entities (first law of thermodynamics).

One of the least thought of ways that energy is present in our world today, until the advent of proof-of-work in Bitcoin, is how the concept of energy applies to money. Despite this, monetary energy is arguably the single most important practical implementation of energy transfer in the world today because it’s the signal of all of the work that people individually and collectively output transferred from our physical selves into the world. As a practical example — to build a bridge, it takes work from the people that are building that bridge, as they are transferring energy in the form of physical labor to build that bridge and are expecting energy in return in the form of getting paid.

The distinct problem that we have today is that the monetary energy in the world is fundamentally distorted to the point where the signal is completely broken. Central banks have routinely bailed out Cantillon insiders and distorted the real cost of capital through interest rate manipulation. This has caused all understanding of monetary value to be lost. Monetary energy can only function optimally in a totally free, uninhibited market. The further distorted the markets become, the less “real” signal the monetary energy produces, and therefore real productivity becomes more distorted from that signal.

Practically what this means is that monetary energy can no longer be transferred across time in a reliable manner. Salability of energy is a key factor in not distorting the monetary energy because I need to know that my purchasing power is going to be worth relatively the same today as it will tomorrow. Otherwise, it will naturally force me up the risk curve to try to preserve my monetary energy.

How do these ideas circle back to physics? As mentioned above, One of the key concepts of physics is thermodynamics. The third law of thermodynamics states that a system’s entropy naturally approaches a constant value as it approaches absolute zero, that is, the lowest limit of the thermodynamic scale. Randomness in systems tends toward the thing that can create order out of disorder. For monetary energy, this would mean seeking the highest signal out of the noise.

Bitcoin combines the first and third law of thermodynamics. It is an entirely emergent system borne out of maximum disorder. This isn’t just theoretically true, it’s practically true, as evidenced by the state of the fiat world.

Ultimately, Bitcoin will absorb the majority of the store of value energy on the planet because it has the hardest monetary properties. Salability, fungibility, censorship resistance, and proof-of -work. Proof-of-work being the most important of these, because it satisfies the first law of thermodynamics, and therefore guarantees that the third law of thermodynamics brings the majority of the monetary energy existent into the network.

Bitcoin isn’t a perfect monetary system. It’s simply the best monetary system the world has ever seen. This is why, on a long enough time scale, the majority of the world’s monetary energy will be stored on the Bitcoin network. It’s simply the natural laws of the universe that make this inevitable.

The short-term exchange rate will fluctuate, often dramatically, as the world assigns various probabilities to the ultimate accrual of monetary energy by the hardest monetary network ever created. But Bitcoin doesn’t work based on a probabilistic function, it works based on a deterministic one. The short-term exchange rate represents the discounting that the world’s population is collectively placing on the laws of thermodynamics playing out. However, anyone that understands these fundamental truths knows that the conclusion is built into the protocol and the emergent systems that develop around the protocol.

While HODLers wait on the world to get caught up, they can rest easy knowing that Bitcoin succeeding isn’t a human question, it’s a question of energy transfer of entropy. And the laws that we know emerge from those guarantee its ultimate success.

This is a guest post by Mind/Matter. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.


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This Biden Adviser Holds Between 25%–43% of His Net Worth in Bitcoin

A key White House advisor holds at least $1 million in Bitcoin.

Tim Wu, who advises the Biden administration on technology and competition policy, keeps a large portion of his wealth in the world’s leading cryptocurrency.



Known for being a tough critic of Big Tech and their centralized power, Wu owns between $1 million and $5 million in Bitcoin, and between $100,001 and $250,000 in Filecoin, a decentralized storage network, according to a personal financial disclosure he recently filed.

Although his investment in Bitcoin comprises 25 to 43 percent of his portfolio, the Columbia law professor also lists gold bars as assets.

Wu, who coined the term ‘net neutrality,’ has spent years advocating for a free and open internet that operates seamlessly without any throttling by corporate or government providers.

Wu believed Bitcoin could be a potential store of value in 2017, as he wrote in an opinion piece for the New York Times.

“If enough others value something, that can be enough to make it serve as a store of value. Sure, Bitcoin will crash again, but over its lifetime, it has already withstood multiple crashes, runs and splits. It actually feels tested.”

Wu joined the Biden White House in March.

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What’s Next For Bitcoin Prices After Their Latest Pullback?

Bitcoin prices have been encountering some difficulty lately, falling more than 15% between yesterday and today amid a broader market sell-off.

The world’s most prominent digital currency declined to as little as $31,035.49 this morning, CoinDesk data shows.

At this point, the cryptocurrency was down roughly 15.6% from yesterday’s intraday high of $36,777.56, additional CoinDesk figures reveal.

Bitcoin suffered these declines at a time when the digital asset has been trading primarily between $30,000 and $42,000 since late May.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

In light of current market conditions, several technical analysts highlighted the crucial price levels that traders should watch.

Justin Hartzman, cofounder and CEO of cryptocurrency exchange CoinSmart, offered some perspective on this matter.

“On-chain metrics show that the SOPR (spent output profit ratio) is below one for Bitcoin, which means that traders are mostly selling their coins at a loss,” he stated.

“Given these selling patterns, the support level to watch is at $30,000.”


“If the bears take over, breaching $30k could trigger a deeper sell-off and cause a flurry of activity that will further depress prices,” said Hartzman.

“As such, all eyes will be on the $30k psychological level since the buyers could be targeting it as a potential entry point.”

William Noble, the chief technical analyst of research platform Token Metrics, also weighed in.

“There is a lot of support near 30.5 to 31k. If that breaks, a move to 24k could unfold.”

Julius de Kempenaer, senior technical analyst at StockCharts.com, offered similar input, emphasizing that “There is some intermediate support just below 30k.”

However, he noted that “the real level to watch is the former breakout level at $20k, which should provide major support for BTC in case of a drop that far.”

In addition, de Kempenaer cited another technical indicator, which helped paint a bearish picture for the digital asset’s short-term prospects.

“BTC is currently completing a breakout from a textbook symmetrical triangle which points to more downside price action in the near future.”

“For the time being the trend is clearly down while upside potential is very limited,” he stated, indicating that it’s “Not really an ideal situation to get back into this market.”

Katie Stockton, the founder and managing partner of Fairlead Strategies, LLC, offered a more bullish take on the subject, stating that:

“Today’s decline in bitcoin marks a retest of support in the $34K area – it is not a decisive breakdown, but it would become one if we see a couple of weak closes (today and tomorrow) at current levels.”

She added that “Oversold conditions are in place from short- and intermediate-term perspectives,” giving bitcoin “a better chance to find its footing.”

“Short-term momentum has deteriorated, but not to the degree with which we have a ‘sell’ signal in the daily MACD.”

“A recovery and subsequent close above the 20-day MA would be a bullish short-term development that would clear the path to the 50-day MA.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.


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IRS Is Requesting $32 Million To Strengthen Crypto Tax Enforcement

The IRS Fiscal Year 2022 Budget talks about cryptocurrency and how the service is planning to use in-house technology and outside contractors to reinforce crypto tax compliance. Within the $13.2 billion total 2022 budget, $32 million ($3 million on IT specialist compensation, $6 million on hardware & software and $23 million on contractors) is allocated to reinforce cryptocurrency related enforcement initiatives.

The $32 million will enable the IRS to:

  • Hire more specialized contractors on cryptocurrency and cybersecurity verticals.
  • Build an internal cryptocurrency/blockchain analytics dashboard named STRIKES.
  • Establish a One-IRS approach to cryptocurrency non-compliance around both tax and non-tax case development.
  • Seek help from private parties in analytics, cybercrime, forensics, accounting/discovery support, investigative support and consulting services.

STRIKES, IRS’s In-house Blockchain Analytics Tool 

The budget explains how the IRS Criminal Investigation division is using outside contractors at the moment. Currently, a specialized contractor is building STRIKES, IRS-owned cryptocurrency/blockchain analytics tool which harnesses the power of existing vendor products by combining the strengths of each product. The IRS expects this tool to be available in other divisions of the IRS soon. 

One-IRS Approach to Improve Cryptocurrency Tax Compliance

The funding will also be used to establish a One-IRS approach. This system will allow the IRS to easily partner up with other business units to catch crypto tax cheats by identifying illicit activity patterns. Further, the IRS is expecting to employ contractors to proactively generate leads around tax non-compliance and illegal activities involving cryptocurrency. 


Disclaimer: this post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.


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Report: MicroStrategy Boosts Latest Note Offering To $500 Million, After Receiving $1.6 Billion In Orders

MicroStrategy has raised its latest note offering, meant to fund additional bitcoin purchases, after receiving major interest.

Software intelligence firm MicroStrategy has reportedly raised its latest note offering from $400 million to $500 million, bearing an interest rate of 6.125%, which will fund more bitcoin purchases by the company, according to a recent report by Yahoo Finance.

MicroStrategy released an announcement on the pricing update.

The company received a large number of orders totaling $1.6 billion from hedge funds, according to Yahoo Finance, prompting the company to increase the note sale from $400 to $500 million. The significant amount of interest for MicroStrategy’s recent junk bond sale comes as the price of bitcoin has decreased by more than 40% over the last month.

Recent mainstream news narratives have apparently hampered bitcoin’s price movements, yet institutional investors seem unbothered, as bids for notes from MicroStrategy, a company that holds 92,079 BTC in its corporate treasury, have been massively oversubscribed.

It is important to note that, though the company received a total of $1.6 billion in interest, this does not mean that the company will sell $1.6 billion in bonds to buy bitcoin, as CEO Michael Saylor and company may see the annual debt service at that amount as unserviceable.

The company predicts that after deducting purchaser discounts and commissions, as well as other expenses, the net proceeds will be $488 million. The recent move comes after the company recently announced the launch of MacroStrategy, a new subsidiary that will manage its bitcoin holdings.


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Mexico lawmakers aim to follow the example of neighboring countries with proposed Bitcoin legislation

Eduardo Murat Hinojosa, a senator of the federal government of Mexico, has said he will be submitting a proposal to lawmakers seemingly aimed at crypto adoption in the country.

In a tweet today, Hinojosa changed his profile picture to feature the senator speaking into a microphone with the iconic “laser eyes,” indicating support for crypto. The lawmaker said he would be “promoting and proposing a legal framework for crypto coins in Mexico’s lower house,” specifically mentioning Bitcoin (BTC).

Hinojosa was not the only Mexico lawmaker indicating their support for crypto. Indira Kempis Martinez, a senator representing the state of Nuevo León, has also switched her profile to show laser eyes, with Hinojosa referring to her as a friend to the cause.

“We are going to lead the shift to crypto and fintech in Mexico,” said Hinojosa.

The social media activity comes as countries in Latin America have seemingly been taking steps towards greater adoption of crypto. In a video announcement to attendees of the Bitcoin 2021 conference last week, El Salvador President Nayib Bukele said he would send a bill to the country’s legislature demanding that Bitcoin be made legal tender.

On Sunday, Paraguayan congressperson Carlitos Rejala hinted that crypto would be connected to “an important project to innovate Paraguay in front of the world” starting this week. Yesterday he added that he was working with local crypto figures “in order for Paraguay to become a hub for the crypto investors of the world.”

Though Mexico has many individual investors who back Bitcoin, authorities in the country reported last year that cartels had been increasing their use of crypto to launder funds. At the time, the head of the Mexican attorney general’s Cyber Investigations Unit said the country’s law enforcement lacked the resources needed to tackle money laundering when crypto was involved.