Crypto Daily | Bitcoin Briefly Breaks $107K; Trump Supports Cryptocurrency Legislation; MicroStrategy Buys $1.5B of Bitcoins in Past Week

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Crypto Daily is our column tracking crypto market trends, offering timely insights and valuable updates to keep you informed.

Bitcoin Briefly Broke Through $107K, Setting a New Record

According to Binance market data, BTC briefly broke through $107,000, setting a new historical high.

Trump Plans to Use the U.S. Treasury's $200 Billion Exchange Stabilization Fund to Establish a Bitcoin Reserve

According to PANews, U.S. President-elect Trump intends to establish a Strategic Bitcoin Reserve (SBR) through an executive order, using the Treasury's Exchange Stabilization Fund (ESF) to purchase Bitcoin.

The ESF is typically used to address financial crises, with total assets exceeding $200 billion as of October 2024. If implemented, this plan would position the U.S. at the forefront of the global Bitcoin reserve race.

Trump Attends Blockchain Association Annual Gala, Supports Cryptocurrency Legislation

According to Foresight News, President-elect Donald Trump attended the Blockchain Association's annual gala, where he delivered a speech highlighting the organization's contributions to cryptocurrency legislation in the United States. During his address, Trump acknowledged the efforts made by the Blockchain Association in advancing crypto-related laws and regulations, emphasizing the importance of real-world applications like DePIN in legitimizing cryptocurrencies. He noted that such use cases are prioritized in legislative agendas.

MicroStrategy Buys $1.5B of Bitcoins in Past Week

MicroStrategy used proceeds from the sale of $1.5B of stock to acquire 15,350 bitcoins(BTC-USD) during the week of Dec. 9-15, 2024, the company disclosed on Monday.

In its latest purchase, the company paid about $100, 386 per bitcoin, including fees and expenses.

As of Dec.15, the company held ~439K bitcoins, which were acquired at a total purchase price of ~27.1B, or an average price of $61,725 per token, the company said.

MicroStrategy's bitcoin yield for the period of Jan. 1-Dec. 15, 2024 was 72.4%, it added. That's up from 68.7% for the period of Jan.1-Dec. 8, 2024.

Bitcoin Miners' Two Value Creation Paths Outlined by Bernstein

Bitcoin (BTC-USD) miners have two options in their quest for value creation: follow MicroStrategy's bitcoin-buying playbook or repurpose their mining infrastructure to capitalize on the booming AI space, Bernstein said on Monday.

"Both options are not without pitfalls," though, analyst Gautam Chhugani wrote in a note to clients.

Many miners, including Core Scientific, Inc., Hut 8 Mining Corp, Hive Blockchain, have been repurposing their computing infrastructure to support AI workloads, amid growing demand for energy-intensive AI services.

And others like MARA Holdings and Riot Platforms are starting to adopt MicroStrategy's BTC model.

Riot Platforms Bought 667 Bitcoin Last Week for $67.5M

Riot Platforms acquired 667 bitcoin (BTC-USD) for about $67.5M at average price of $101,135 per coin, it disclosed on Monday.

The purchase, made on Dec. 12-13, boosted Riot's totaling bitcoin (BTC-USD) holdings to 17,429 tokens, according to an SEC filing. That's up from 10,427 BTC at Sept. 30, 2024, and 7,362 at Dec. 31, 2023.

MicroStrategy's Potential Inclusion In S&P 500 And Bitcoin's Strategic Role

According to Odaily, BLOK portfolio manager Dan Weiskopf has expressed his view that while MicroStrategy's inclusion in the S&P 500 by 2025 may seem distant, it is ultimately a matter of time. Weiskopf, along with the Amplify ETFs team, elaborated on an intriguing hypothesis: if Bitcoin's price surpasses $200,000, MicroStrategy's weight in the S&P 500 could one day exceed that of Bank of America. This speculation highlights the potential impact of Bitcoin's valuation on major financial indices.

Bitcoin Spot ETF Flow

The Bitcoin spot ETF with the highest net inflow on Dec 16 was iShares Bitcoin Trust, with a net inflow of $418.16 million. Following that was Fidelity Wise Origin Bitcoin Fund, with a net inflow of 116.06 million, according to SoSoValue.

As of now, the total net asset value of Bitcoin spot ETFs is $120.71 billion, and the ETF net asset ratio (market value compared to total Bitcoin market value) is 5.76%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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