Strategy Buys 22,500 BTC as STRC Explodes — Is Bitcoin Next?

0:00with this announcement from Meta Planet, it's over $750 million that they plan to raise to, most likely, by Bitcoin with it, or SDRC, which essentially strategy turns around and buys Bitcoin with, right? And you couple that with strategies announcement, they bought more than a thousand of each Bitcoin that will ever exist this week alone, right? It's over 21,000 Bitcoin. And, yeah, other Treasury companies like Meta Planet with massive fund raises as well. So it's definitely going to put up more pressure on the price of Bitcoin here. How many shares are you sitting on right now? Hello, everyone, and welcome to one share. None of what you will hear is financial advice and this podcast is for educational and entertainment purposes only. So we have the massive strategy and advice to discuss today with SDRC ATM record high.

1:02I believe $1.2 billion worth of SDRC that was issued last week. And additionally, almost 400 million in MSTR common stock was issued. So a total of 1.57 billion, and with that strategy bought 22 and a half thousand Bitcoin. So a very big buy. What's the first thing that stands out here is that we have less common stock ATM than SDRC ATM. And in the prior weeks or since the beginning really, this was reversed, right? Where we had about three to one or four to one ratio of MSTR to SDRC ATM. And now we're seeing three times more SDRC ATM than MSTR. So interesting, interesting to see that for the first time here. And massive numbers overall, what are your thoughts? Yeah, that's great to see that finally SDRC

2:03is taking the lead here on the ATM. That's what we had expected a long time ago that what would happen, right? That the digital credit products would have larger ATMs than the common share ATM. And so finally happening here. And I think it kind of makes sense now that SDRC is speaking up steam to have larger ATMs on SDRC than the common share. Also looking at how Bitcoin volatility or Bitcoin price action is doing. Because at the end of the day, what you want to see is also some amplification. So seeing a little bit of digital credit taking the lead in terms of issuance and also the ratio of how much digital credit is buying how much Bitcoin compared to the common share. So it's definitely great to see that finally happen here. Yeah, this is increasing amplification as you said.

3:04Now I'm not sure if this was really planned that way or if it's just that strategy was not able to issue more common stock without affecting the price or the MNAF too much last week, right? Because if they wanted to keep the ratio that they had over the last weeks with a three to one or four to one compared to stretch, it would mean that they would have had to issue three to four billion in common stock within a week, right? And this would probably have affected the market too much. So I don't know if they also issued less because simply that was what they could do without affecting price too much. And I think we might see an answer or partially an answer next week. If we see that SDRC currently it's trading below par. It hasn't come back up to par as of Monday. If it stays below all week or until later this week

4:06they won't be able to issue a lot of SDRC but I would expect that they issue a lot of MSTR maybe in the same range again for next Monday's announcement to try to catch up to what they were not able to issue last week, basically. Yeah, I suspect that you're right. Probably strategy wasn't able to issue as much common share as they would have liked to but because of the conditions that they were having during the week they didn't do so. So probably that was the limiting factor for sure. Nonetheless, that's what I would have expected again a long time ago to happen. So interesting dynamics here. I'm sure that if we see Bitcoin price pick up and MSCR price pick up as well as the volume and so on that they will be issuing probably more common shareings. Right now SDRC is not trading a par. We need to wait until that happens so that they start issuing more SDRC on that level. So definitely something to be on the lookout there.

5:09But I want to reiterate how impressive the number on SDRC is 1.2 billion for the week which means that they should more than 200 million every day to buy Bitcoin. And with that it's accelerating significantly, right? And we're also seeing that they now have less than 2 billion left of available issuance from their original ATM guidance probably an announcement coming very soon here that they will increase their ATM capability on SDRC. Considering the issuance of last week and the volume speaking up, I would expect an announcement sometime this week or late this next week on this front. So for sure something that will come up from strategy soon enough. So how much do you think they will announce the next SDRC ATM for? I'm thinking 21 billion, the same they had on SDRK

6:09or a multiple of that. Given that they can issue a billion a week now, 21 billion would only be half a year. If the product stays as successful or continues to scale, so maybe it's 42. But yeah, something in a big number is what I'm expecting. Yeah, I would tend to think about the same range or at least the same magnitude. Okay, now let's stay on SDRC and look at the volumes over the last weeks. We have the nice overview here from Jackson Fairbanks and we're seeing a huge jump in volumes in the week of March 13th, compared to March 6th for our listeners. It's a 121% increase week over week. And we're really seeing that the SDRC is the iPhone moment for strategy. It's by far the biggest volume and also the biggest change week over week. And it's been scaling massively here,

7:12also looking back to the beginning of the year here we're seeing the record volume week basically and mainly driven by SDRC. But it's also interesting to look at the remaining graphs here and you had some observations here on the others. Yeah, maybe just on SDRC looking at the chart. It's quite impressive to see how over the last four weeks basically you can see the volume double each week starting from the week of the 20th of February and then going all the way until last week. And yeah, on the other graphs it's an interesting dynamic. So obviously we see also interest on SATA growing doubling from the week before that. So the week of the 6th of March and also the interest on SRD growing as well. However, SRF this volume is going down. So maybe there's some speculation from IAN

8:13but probably some arbitrage going on between the different graphs between mainly I would say SRD and SRF. So if confidence on Bitcoin grows, goes higher, then I expect the investors to be going more on to the SDRD and maybe selling some SRF to arbitrage this spread basically between the two. And if you look at the numbers, they seem to just inverse themselves as well, more or less. So doesn't look like there's been any outflows or infos, it's just the same amount of volume there in terms of both instruments if you pack them together. And maybe just one last thought on strategy because last week we were looking at some calculations on how much Bitcoin they needed per week to get to one million Bitcoin on their balance sheet. So we mentioned that it would be 6.2,000 Bitcoin per week

9:14until the end of the year to reach the one million. And now with this massive buy of 22,000 away ahead. So if they keep track, for sure, they will reach the one million Bitcoin before the end of the year, which is massive. Yeah, definitely very impressive. And I think all eyes on SRC now over the next days and week maybe to see how quickly it gets back up to par. It was impressive to see after the accident date on Thursday. On Friday, it should have opened around a dollar lower, but it basically opened already at 99.5. And now slowly going back up towards the 100 where as we're taping this, we're at 99.80. So it looks like it might be a very quick recovery here, even though the next dividend date is a month out here.

10:15Yeah, so strategy remains the most interesting stock and play to watch here. Let's see how it goes this week. But we also have some good or interesting news from Metaplanets as well here on Monday with new capital raises. A few announcements here from Metaplanets. So they already did get some new capital from stock issuance at the 2% premium. They raised $255 million and they do have the possibility of an additional 276 million with a 1 premium of 10% that they could potentially raise additionally. And then they also have some news on their moving strike warrants that they estimate additional raise of 234 million from those. And something that is new to the industry is their guidance

11:19or the way they built those moving strike warrants that they can only be exercised if the multiple to net asset value is over 1.01. So it has to be a creative to the common shareholder. Otherwise, it can't be exercised, which is an interesting and probably a smart innovation here from Metaplanets. Extremely bullish news coming from Metaplanets considering the size of the fund raising in total. I think that's a great sign because it shows that there is interest from the market to seal by Bitcoin treasuries, whether it be warrants or actually shares. And not only that, but at the premium. That is great news for the investors because up until now we've always seen those larger sales or issuance of stock to larger investments at a discount,

12:19at least to what I've seen up until now. That's probably the first time we see something at a premium. So that's definitely something that caught my eye. So definitely some great news from Metaplanet. We had a recent talk. It was speculating a bit this Japanese yen carried trade 2.0. I'm curious to know what they do with the funds raised whether they go for Bitcoin or a mix of Bitcoin and SRC or just SRC. Yeah, in any case, it's impressive. It's with this announcement from Metaplanet. It's over $750 million that they plan to raise to most likely by Bitcoin with it or SRC, which essentially strategy turns around. And buys Bitcoin with it. And you couple that with strategies and announcement, they bought more than 1,000 of each Bitcoin that will ever exist this week alone. It's over 21,000 Bitcoin.

13:21And other treasury companies like Metaplanet with massive fund raises as well. So it's definitely going to put up more pressure on the price of Bitcoin here with those massive news. All right. Do you have any final thoughts before we wrap it up? Yeah. So last week, we saw quite a few announcements. Mainly, I think the strive one was an interesting one buying 50 million worth of SRC. And obviously that drove a big part of the issuance of SRC on one hand, but also the volume that was picked up on SRC last week. What will be interesting to see over this week or the coming weeks is further announcements of such magnitude in the space, whether big institutions, not and hopefully not only Bitcoin treasuries, but the total companies buying SRC and adding it to their balance sheet just to get this yield on top. All right, that's all we had for you today.

14:21Thanks for listening. And see you on the next one. Bye-bye, everybody. See you next time. How many chairs are you sitting on right now?