Sam Ikkurty - Constitutional Rights & Legal Advocacy

Dear Partners,

Bitcoin has been around for more than 10 years now, but only individuals so far has been owning majority of the outstanding bitcoin. I have been involved in bitcoin since 2013. This week a small news item caught my attention.

This week, MicroStrategy Incorporated (Nadaq: MSTR), has taken $250 million of their balance sheet capital and purchased 21,454 bitcoins. Given bitcoin's rigid supply, it is close to 0.1% of bitcoin's outstanding supply. This is not a wild, speculative investment decision though. Michael Saylor, CEO said, " MicroStrategy spent months deliberating to determine our capital allocation strategy". I think it is a small move from one company in the universe of tens of thousands of public companies. If you take a long-term perspective it is bullish for bitcoin and the crypto-asset markets in general. MicroStrategy removed career risk for CFOs from putting company treasury into bitcoin.
As soon as this news was announced, the price of MSTR shot up a lot. Retail investors now look at MSTR as a bitcoin company, even though their operational business is completely different. I think that initially small cap stocks like MSTR will manage their treasury by diversifying into bitcoin. It will slowly trickle to the large cap stocks like like Apple and Google, which are collectively own more than $250 billion in cash. That will slowly motivate central banks around the world, to divest their gold holdings and move to digital gold itself. Wall Street and CEOs will run behind any trend that pushes the stock price up, as they have enormous amount of stock options as their compensation. MicroStrategy's stock run up itself will trigger lot of boardroom discussions on treasury management discussions with CFOs and Corporate Controllers. This article talks about the second order effects of this news.
We are actively engaging in proof-of-stake mining with Synthetix. Synthetix will pass the trading fees (0.3%) generated on the exchange to the token stakers. This week we have generated a staking income ( 335.68 SUSD + 2747.99 SNX * $6.34 ) totaling $17,757. The value of the staked SNX (399047) is $2,529,957 at a price of $6.34. This gives us a yield of 17757 / 2529957, which is 0.7019% per week. If we annualize the yield by (1.007019)^52, it results in a yield of 43.86% APY. This can be seen directly from this website here: https://snx.tools/address/0xE787DEEc0BE77Db98A1294193E2c1600C8a8687d/staking/rewards-claims on the reward claims tab. We currently hold 488,512 tokens of Synthetix.
We currently own 294 tokens of YFI, which is close to 1% of the outstanding supply. YFI has not announced their staking policy yet, but in the second week of its existence it generated a fee income of $84,000, in one week. Since we are holding these YFI tokens, I have added them to market-making pool to generate some income. This gave us 19,570 YAM tokens. We received these tokens for free, for pooling our YFI tokens. They found a bug in the smart contracts, that has led them to completely launch a new contracts and a version 2 of these tokens. It is an small speculation. They will just sit in our wallet and will be sold to buy more useful tokens like SNX. I have also attached the screenshot of the income received from REN dark nodes this week.
This week I have added around 1712 tokens of NXM to our portfolio around $20. Nexus Mutual is an insurance company that provides insurance against bugs in smart contracts. As long as we have smart contracts in the world, we will have bugs. The value of NXM token will track the amount of premiums received from the policy holders. These premiums are passed through to the stakers. Claims are paid to the policy holders in Ethereum tokens. I am bullish on NXM due to its upcoming collaboration with YFI token.

Have a wonderful weekend!

Sam Ikkurty

Managing Partner

Cell:813.389.3380

1. MicroStrategy CEO comment

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Five bullet Friday - Issue #51