opinion

Crypto SWOT: Michael Saylor is selling almost $216 million worth of shares in MicroStrategy

Kitco Media
By Frank E Holmes
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Crypto SWOT: Michael Saylor is selling almost $216 million worth of shares in MicroStrategy teaser image

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Internet Computer, rising 38.43%.
  • Monthly cryptocurrency exchange trading volume surpassed $1 trillion in December, a threshold that exchanges had failed to surpass in over a year. December was a big month for crypto trading, with exchange volume totaling $1.1 trillion, writes Bloomberg.
  • Social media influencer Logan Paul has announced to his millions of followers his commitment to personally repay victims of the failed NFT project CryptoZpp, which he launched and endorsed, reports Bloomberg.

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Bonk, down 30.45%.
  • The Bitcoin spot market still has deficiencies, including price discrepancy across exchanges and platform risks, according to Simeon Hyman, a global investment strategist at ProShares. On Bloomberg TV, Hyman said there are multiple prices for Bitcoin, while futures in the cryptocurrency rely on a combination of prices for settlement everyday, writes Bloomberg.
  • Michael Saylor is selling almost $216 million worth of shares in MicroStrategy, the software company he co-founded and turned into the largest publicly traded holder of Bitcoin, writes Bloomberg.

Opportunities

  • Crypto asset manager Grayscale Investments is in talks with firms, including JPMorgan and Goldman Sachs, to potentially play a key role in its proposed Bitcoin exchange-traded fund. Both are being considered to be authorized participants, writes Bloomberg.
  • Cowen analyst Stephen Glagola raised the target on Coinbase Global Inc. to $75 from $39 and maintains an underperform rating, according to Bloomberg.
  • In a Bitcoin production and mining operation update published yesterday, Marathon Digital Holdings announced that it produced a company record 1,853 Bitcoin ($81.2 million at current prices) last month, according to Bloomberg.

Threats

  • In a significant development, Chinese official media has highlighted the growing concern over corrupt officials using cryptocurrency cold storage to illicitly transfer and transact funds internationally. Exports at the meeting emphasized the urgent need for both legislative and technological advancements to effectively combat these emerging forms of corruption, writes Bloomberg.

  • Bitcoin struggled to rebound from a precipitous drop which sent the largest cryptocurrency falling as much as 9.22% earlier in the week. The token was little changed on Thursday morning London time, trading at around $43,056 and marking a partial recovery from Wednesday’s low but still 6.2% from the year’s high, according to Bloomberg.

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  • South Korean police have arrested a man they suspect of stealing cash as part of a bogus over-the-counter (OTC) crypto exchange. Officers said that the man “lured” a victim into believing the deal was a bone fide crypto transaction, according to CryptoNews.
Kitco Media

Frank E Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

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Frank Holmes
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