MSTR Expands Bitcoin Holdings with $1.34B Purchase

CRYPTO
MSTR Expands Bitcoin Holdings with $1.34B Purchase

Strategy (MSTR) has acquired an additional 13,390 BTC for $1.34 billion, at an average price of $99,856 each. This purchase follows the Strategy Conference last week and raises the company’s total bitcoin holdings to 568,840 BTC, valued at over $59 billion based on the current price of $104,000 per BTC. The average price for its entire bitcoin stack is now $69,287.

The $1.34 billion investment was funded through the sale of common stock and Series STRK preferred shares between May 5 and May 11. The company raised $1.31 billion via an at-the-market (ATM) offering of Class A common stock and issued 273,987 shares of the preferred stock series.

A growing trend among institutional investors and even countries is to buy shares in MSTR as a proxy for Bitcoin exposure. By purchasing MSTR stock, they gain the benefits of Bitcoin’s price appreciation without directly owning or managing the cryptocurrency. This strategy offers an attractive way to tap into the growth potential of Bitcoin while sidestepping regulatory hurdles, custody risks, and the complexities of managing digital assets directly. As more funds and sovereign entities seek exposure to Bitcoin’s upside potential, MSTR’s growing holdings make it an appealing investment vehicle for those looking to add Bitcoin exposure to their portfolios.

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CRYPTO
Dubai Partners with Crypto.com for Payments

Dubai’s Department of Finance has partnered with Crypto.com to allow government service fees to be paid using cryptocurrencies. The memorandum of understanding was signed at the Dubai FinTech Summit, marking a key step in achieving the "Dubai Cashless Strategy." This initiative aims for 90% cashless transactions in Dubai's public and private sectors by 2026.

Once the technical arrangements are in place, individuals and businesses can use Crypto.com’s digital wallets to pay service fees, with the platform converting payments into Emirati dirhams and transferring them to Dubai Finance accounts. Mohammed Al Hakim, president of Crypto.com UAE, hailed the partnership as a "global first." However, the specifics regarding which digital currencies will be accepted and the types of government fees covered remain unclear. This partnership reflects Dubai's ongoing push to position itself as a leading global tech hub, building on its long-term investment in the crypto industry.

ECONOMY
U.S.-China Agree on 90-Day Tariff Pause

The U.S. and China have agreed to a 90-day pause on escalating tariffs, offering temporary relief to markets. The agreement reduces tariffs by 115%, signaling a potential shift toward de-escalation. While some view this as a cleanup of previous policies, analysts believe it could lead to broader negotiations to stabilize markets and ease concerns of recession and stagflation. The deal includes a 30% tariff on Chinese goods and a 10% tariff on U.S. goods. Though the agreement is short-term, investors are hopeful it signals progress.

Economists are divided on the implications. Some suggest it is a cleanup of earlier chaotic trade policies, while others see it as a move toward long-term negotiations. Analysts believe this could stabilize growth and prevent a recession. While the 90-day window may not lead to a full agreement, it provides a much-needed break, and further tariff reductions could follow as talks continue.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.