Dex-Trade News Digest: Germany's Bitcoin Strategy and MicroStrategy's Stock Split
Germany Government Maintains Active Bitcoin Transfer Strategy, Holdings Deplete
Germany has been actively moving Bitcoin to centralized exchanges, including Bitstamp, Kraken, and Coinbase, in recent days. According to Arkham Intelligence, a government-managed wallet transferred 10,567 BTC, valued at over $600 million, across several batches to various crypto exchanges and service providers.
Germany's Bitcoin Holdings
The German authorities now hold roughly 9,090 BTC, worth about $517 million, a significant decrease from the initial 50,000 BTC, valued at nearly $3 billion, seized in January 2024 from the Movie2k.to website during a major crackdown on illegal activities.
Fire Sale Nearing Completion
Analysts predict that Germany's Bitcoin fire sale is nearing its end, potentially concluding by early next week. This massive selloff, which began in June with 900 Bitcoins and has continued steadily, has significantly impacted the market.
Market Impact
The ongoing selloff has contributed to Bitcoin's price fluctuations, with values swinging between $54,000 and $59,000. As of July 12th, 4:40 UTC, Bitcoin was trading around $56,855. The selloff coincides with other major events, such as Mt. Gox starting Bitcoin repayments and the looming US elections, raising concerns about further market volatility.
Billionaire Michael Saylor Announces 10-for-1 MicroStrategy Stock Split – How Will Bitcoin React?
Michael Saylor, CEO of MicroStrategy, announced a 10-for-1 stock split for his Bitcoin development and business intelligence software company. This move aims to make MicroStrategy's high-valued shares more accessible to smaller investors.
Details of the Stock Split
The stock split will be effected through a stock dividend to holders of record of MicroStrategy’s Class A and Class B common stock as of August 1, 2024. Each investor will receive nine additional shares for every one share they own. The split will occur after trading closes on August 7, with split-adjusted trading starting on August 8.
Impact on Investors
While the stock split doesn't change the overall value of an investor's holdings, it significantly dilutes the value of individual shares. However, it makes the shares more accessible to a broader range of investors, potentially increasing market activity. Following the announcement, MSTR stock rose 5% in pre-market trading to $1364.
MSTR's Performance and Bitcoin Holdings
MicroStrategy's stock has surged 216% over the past year, serving as a leveraged alternative to direct Bitcoin investment. The company holds 226,331 BTC ($13.33 billion) on its balance sheet, with a market cap of $23.16 billion. Despite Kerrisdale Capital's call for a 50% drawdown in MSTR stock value relative to its Bitcoin holdings, the company continues to trade at a considerable premium.
