MicroStrategy will buy $2 billion of BTC, and the market value of Bitcoin will reach half of gold

Headline

▌MicroStrategy will raise $2 billion to buy more Bitcoin

MicroStrategy will raise $2 billion to buy more Bitcoin.  

Previously reported, MicroStrategy had a net loss of $102.6 million in the second quarter, and its Bitcoin holdings rose to 226,500.

▌VanEck CEO: Bitcoin market value will reach half of the total market value of gold

VanEck CEO said that Bitcoin market value will reach half of the total market value of gold, reaching $350,000 per coin.  

In addition, VanEck CEO also said that if central banks adopt Bitcoin and become part of the financial system, its value will reach "millions."

Market

As of press time, according to Coingecko data:

BTC's latest transaction price is $65,357.61, with a daily increase or decrease of +1.2%;

ETH's latest transaction price is 3,202.12 yuan, with a daily increase or decrease of -0.8%;

BNB's latest transaction price is $575.17, with a daily increase or decrease of -0.0%;

SOL's latest transaction price is $167.82, with a daily increase or decrease of -2.2%；

DOGE's latest transaction price is $0.1189, with a daily increase or decrease of -2.7%；

XPR's latest transaction price is $0.5961, with a daily increase or decrease of -4.3%.

Policy

▌New York authorities announced charges against scammers using "fake cryptocurrency asset recovery business"

Manhattan District Attorney Alvin Bragg announced criminal charges against an individual for using a "fake cryptocurrency asset recovery business" to defraud customers.  

In a notice on August 1, the New York District Attorney's Office said it had charged Michael Lauchlan with three counts of grand theft and two counts of fraud for stealing funds from Coin Dispute Network users. According to the district attorney, Michael Lauchlan claimed to be able to track and recover lost crypto assets, but in fact it defrauded customers of fees and stole Ethereum from at least three users.

▌The U.S. Senate Majority Leader introduced a bill to oppose the Supreme Court's partial support for Trump's immunity claim

On August 1, local time, U.S. Senate Majority Leader Chuck Schumer and other Democratic lawmakers introduced a bill to refute the previous Supreme Court's ruling on former President Trump's presidential immunity. According to the bill, the U.S. President and Vice President have no immunity for violations of federal criminal law while in office. The bill also clarifies that the government department responsible for deciding who federal criminal law applies to is Congress, not the Supreme Court. The U.S. Supreme Court ruled on July 1 that Trump enjoyed a certain degree of immunity from criminal prosecution in a federal case involving alleged "interference in the 2020 election," and instructed the lower court to reconsider the case and determine which actions are "official acts" that cannot be prosecuted.

Blockchain Application

▌Base Blockchain Team Launches Customizable On-Chain Identity Tool Basenames

Base Product Manager Thomas Vieira released a new product called Basenames at Coinbase's BaseCamp Summit on Thursday, which is a customizable on-chain identity tool designed to make blockchain addresses composed of letters and numbers easy to read. 

It is reported that users can connect many different wallets to the application, including MetaMask, Rainbow and Coinbase Wallet, to register names. There is also a webpage where users can search for other Basename addresses to interact with and customize their profile by adding a bio, social media accounts and relevant skills.  

The product will be available first to all BaseCamp participants and will be launched to the public in the coming weeks.

Cryptocurrency

▌US mining company CleanSpark builds new mining facility in Wyoming

US mining company CleanSpark has become the second largest mining company by market value after acquiring Riot Platforms. CleanSpark is continuing to expand and has started construction of a new facility in Cheyenne, Wyoming, which is expected to be operational by the end of the year. The company is also acquiring a second mining farm in Wyoming and will expand to Tennessee through the acquisition of GRIID Infrastructure. CleanSpark has signed a 75MW power contract in Wyoming, of which 30MW is used to run the S21 Immersion XP application-specific integrated circuit (ASIC) in the planned facility. This will increase the company's hash rate by 2EH/s. CleanSpark is looking for additional power sources for the facility.

▌Santiment: Starting August, traders are generally optimistic about the top cryptocurrencies

Santiment, an on-chain and off-chain indicator intelligence platform, posted on the X platform that with the arrival of August, traders are generally optimistic about the top cryptocurrencies. It is expected that the FOMO sentiment will weaken slightly before Bitcoin, Ethereum, Ripple and SOL rise. BNB is one of the few large cryptocurrencies with relatively weak market bullish sentiment.

▌Mining company Marathon's second-quarter revenue was US$145.1 million, lower than expected

According to FactSet data, Bitcoin mining company Marathon Digital Holdings' second-quarter revenue was US$145.1 million, which did not meet Wall Street's expectations of US$157.9 million. Marathon said in its earnings report that its second-quarter sales were hit by some operational challenges that hampered its ability to mine Bitcoin and the recent halving that weighed on the mining industry. Marathon Digital's second-quarter adjusted EBITDA swung to a loss of $85.1 million from $35.8 million a year earlier, primarily due to fair value adjustments for its digital assets and a reduction in the number of BTC mined during the quarter. The miner currently holds more than 20,000 BTC on its balance sheet. Marathon Digital (MARA) shares fell as much as 8% in after-hours trading Thursday, trading at around $18.14.

▌MicroStrategy's second-quarter net loss was $102.6 million, and its Bitcoin holdings rose to 226,500

MicroStrategy reported a second-quarter net loss of $102.6 million, or $5.74 per share, compared with revenue of $22.2 million, or $1.52 per share, in the same period last year.  

The loss was due to the company's $180.1 million impairment provision for its Bitcoin holdings, compared with $24.1 million in the second quarter of last year.  

The report showed that as of July 31, MicroStrategy had purchased an additional 169 Bitcoins for a total price of $11.4 million, bringing its total holdings to 226,500 Bitcoins, an increase from mid-June.  

The purchase price of 226,500 bitcoins is $8.3 billion, an average of $36,821 per coin. At the current price of $63,500, the assets are worth about $14.4 billion.  

The company said its "BTC yield" so far this year is 12.2%, and its goal for the next three years is to reach 4% to 8% per year.

Important Economic Dynamics

▌The probability of the Federal Reserve cutting interest rates by 50 basis points in September has increased

According to CME's "Fed Watch", the probability of the Federal Reserve cutting interest rates by 25 basis points in September is 78%, and the probability of a 50 basis point cut is 22%. The probability of the Federal Reserve cutting interest rates by 50 basis points by November is 29.1%, the probability of a cumulative 75 basis point cut is 57.1%, and the probability of a cumulative 100 basis point cut is 13.8%.

▌Economic Daily: The Fed is paving the way for rate cuts, and emerging economies still need to maintain rational expectations

Various signs indicate that the Fed's monetary policy is approaching a time window for cyclical changes. At present, the market is expecting the Fed to cut interest rates in September. In general, the conditions for the Fed to cut interest rates are ripe, and a new round of easing cycle is about to begin. If the Fed chooses a relatively mild rate cut model in the future, the international financial market may not fluctuate greatly, but developing countries and emerging economies still need to maintain rational expectations for the Fed's rate cuts, plan for the worst, and make contingency plans.

▌Bank of America: The S&P 500 has limited upside in the short term

Bank of America's stock market inverse indicator rose last month, reflecting the high sentiment on Wall Street. Given that the indicator remains in "neutral" territory, rather than at "buy" or "sell" thresholds, that means the extreme pessimism about stocks that fueled the rally last year is no longer there. In July, the so-called Sell Side Index (SSI) rose 30 basis points to 55.6%, Savita Subramanian and others said in a note to clients. The indicator tracks the average of strategists' recommended allocations to U.S. stocks for balanced allocation funds. The measure is at its highest level since early 2022, but still below average, "suggesting that optimism has not yet reached dangerous levels," wrote the bank's head of U.S. equity and quantitative strategy. Subramanian said the S&P 500 has limited upside in the short term, but there are still opportunities for good returns within the index.

▌U.S. recession concerns raise expectations of a Fed rate cut

U.S. stocks sold off on Thursday, with the Dow set to have its worst day of the year. The Dow fell more than 1.6%, the S&P 500 fell more than 2%, and the Nasdaq fell more than 3%. Some of the latest data have raised market concerns about a possible recession and the view that it may be too late for the Federal Reserve to start cutting interest rates. The number of initial claims in the United States in the latest week hit the largest increase since August 2023. The ISM manufacturing index, a barometer of U.S. factory activity, recorded 46.8%, lower than expected, indicating that the economy is contracting. "Today's economic data continues to show a downward trend in the economy, even if it is not a recession," said Chris Rupkey, chief economist at FWDBONDS. "The stock market doesn't know whether to laugh or cry, because although the Federal Reserve may cut interest rates three times this year, the wind of recession is blowing hard." Some companies that may be severely affected by the recession have fallen the most, with JPMorgan Chase (JPM.N) falling nearly 3% and Boeing (BA.N) falling more than 7%. Even large technology stocks such as Nvidia have felt the pain, with their shares falling 8%, because as the U.S. election in November approaches, the market may see greater volatility, and investors may sell some chips at this time.

Golden Encyclopedia

▌What is Delegated Proof of Stake (DPoS)?

DPoS is an evolution of the Proof of Stake (PoS) consensus mechanism designed to provide enhanced scalability, efficiency, and democratic governance. Daniel Larimer proposed the DPoS concept in 2014 as an enhancement of the traditional PoS consensus mechanism designed to improve efficiency and scalability. Larimer first shared his vision in a Bitcointalk forum post, which led to the actual implementation of DPoS and the launch of BitShares in 2015. This marked the beginning of DPoS in blockchain technology, laying the foundation for its adoption in other projects such as Steem and Eos. In particular, Eos, which used the consensus mechanism to conduct one of the largest initial coin offerings (ICOs) in the cryptocurrency industry in 2017, has attracted great attention to DPoS and highlighted its potential in achieving high performance and decentralized governance.

Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish the correct investment concept and be sure to increase risk awareness.