MicroStrategy's Bold Bitcoin Strategy: A Risky Hedge Fund Approach?
Sidney explains that MicroStrategy's use of stock sales and convertible bonds for Bitcoin purchases is atypical, resembling a hedge fund approach. If Bitcoin's price falls, risks arise due to leveraged exposure. While the company might endure a prolonged downturn, equity holders could suffer from falling Bitcoin value and stock dilution, challenging the current equity premium.
Crypto TVL Drop: Understanding Liquid Restaking's Decline
Sid explains the TVL drop is due to "tapering of initial EigenLayer incentives" and capital rotation into riskier products. EigenLayer's ETH drop reflects tighter risk management. Ether.fi's rebound is due to its strong community focus, real yield offerings, and seamless integration with EigenLayer, making it appealing in a risk-off market.
GENIUS Act: A New Era for Stablecoin Regulation in the U.S.
Sid predicts big banks like JPMorgan and Citi will lead in stablecoin issuer approvals, with fintechs like Visa and Mastercard also in the mix. He notes, "The GENIUS Act aligns with UK regulations," focusing on reserves and oversight. Sid highlights the bill's balance of ambition and practicality, though political challenges remain.