PLUS: These 15 states are racing to create $BTC reserves 🏃♂️➡️
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GM. This is Milk Road, the newsletter that digs through quarterly reports and delivers you the gems!
Here’s what we got for you today:
- ✍️ MicroStrategy reports Q4 earnings
- ✍️ These 15 states are racing to create $BTC reserves
- 🥛 PRO “Where are we in the cycle?” indicators
- 🎙️ The Milk Road Show: Hyperliquid to Join Solana, Ethereum & Bitcoin as the Next Major w/ Zeneca
- 🍪 Memecoin holders are in pain
Prices as of 2:00 PM ET. Click here for our Fear & Greed Index.
EVERYTHING YOU MISSED IN MICROSTRATEGY’S Q4 EARNINGS REPORT 💰
MicroStrategy just reported its Q4 earnings, and there is A LOT to cover!
So let’s skip the niceties and get right into it. Ready? Good – let’s go!
1/ MicroStrategy has rebranded to ‘Strategy’ (or ‘Strategy₿’)
The $MSTR ticker will remain the same, but the company will now go by Strategy – or ‘Strategy₿’ if you’re buying the merch.
2/ $MSTR will adopt the FASB ‘fair value’ accounting as of this quarter (Q1 2025)
The Financial Accounting Standards Board (FASB) has introduced a new rule that significantly changes how companies like Strategy report their Bitcoin holdings!
The old way: $MSTR had to report Bitcoin at its lowest price since purchase, even if the current value was much higher.
The new way: $MSTR will report Bitcoin at its current fair market value.
The result: Strategy’s balance sheet is about to look a whole lot better.
And as an added bonus? This should help to coax other companies into adopting $BTC. 👇
3/ Strategy’s $BTC yield came in at 74.3% for 2024!
Ok, that sounds cool – but what the hell does it mean?? (Bitcoin doesn’t have yield).
Basically, it represents how much $BTC is held for every share of $MSTR stock.
An increase in $BTC yield means that each share of $MSTR stock now represents ownership of more Bitcoin than it did previously ($MSTR takes on debt to buy $BTC → Bitcoin yield goes up).
4/ $MSTR is diluting its shares
Ok, so that yield we just covered? It might be about to take a hit (in the short term).
In late December, $MSTR gave itself permission to create a whole bunch of new shares (like 30x more than before) – a dilution that has since begun, and will continue to roll out over time.
In the short term, this could mean the ratio of Bitcoin held to $MSTR shares will go down, lowering the $BTC yield.
But guess what they’re going to do with the money earned from selling those new shares? Yuh. Buy Bitcoin hand over fist.
Which, depending on what price they’re buying $BTC at (and how much new debt they’re taking on) could/should lead to greater $BTC yields down the line.
And so far, shareholders appear relatively unfazed by the dilution announcement.
5/ $STRK Nasdaq launch
On top of the $MSTR share dilutions, Strategy has announced the launch of $STRK on the Nasdaq.
Here’s how $STRK works:
People can buy $STRK at launch for $80 per share → Strategy promises to pay them 8% per year in dividends → these can be paid in cash, regular $MSTR stock, or a mix of both.
(The more $STRK shares are sold by Strategy, the more $BTC can be bought).
It’s set to launch today, and so far, the rumors are that investors are excited about it…
6/ $MSTR is cranking up its leverage ratio
Leverage ratio = the percentage of Bitcoin that $MSTR has essentially bought using borrowed money.
Right now, that ratio is sitting at around 18% – but the company is looking to juice those numbers up to 20-30% (which should help the overall $BTC yield numbers).
7/ As of the end of Q4 2024, $MSTR holds a total of 471,107 $BTC
That’s roughly 2.37% of all the Bitcoin that will ever exist! And get this – they bought nearly half of that in Q4 of 2024 (218,887 $BTC)!
8/ But how well has this ‘Bitcoin Strategy’ been working over time?
Answer: so far, ridiculously well. Strategy’s outperformance over the past ~4 years has been insane! 👇
Alright, that’s everything you need to know.
Take a breather and we’ll see you in the next article!
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COTD: 15 STATES RACING TO CREATE BITCOIN RESERVES 📊
That first article was a doozy, and we’re all about quick daily reads – so let’s keep this one short n’ sweet!
Everyone is waiting with bated breath to see whether or not the US will create a Bitcoin Strategic Reserve (BSR if you’re nasty)…
But what a lot of Crypto Twitter is missing is the fact that many US states are quickly moving through the required motions to enact the very same thing!
Hell – Arizona and Utah are already at step 4/5 of making BSRs a thing in their states. 👇
Remember how we covered game theory in last Thursday’s edition?
This is the same thing, playing out on a state-by-state basis.
(The more that join the race → the more that those on the sidelines will fear they’re missing out).
We love to see it!
PRO “WHERE ARE WE IN THE CYCLE?” INDICATORS 🤔
Oooft!
Over the last 30 days, crypto’s top 30 tokens are down ~22%, the crypto AI sector is down ~47%, and memecoins are down ~41%.
…so should we be worried?
Best not to leave this sort of thing up to guesswork — instead, let’s check in and see where we are in the current cycle.
ICYMI: crypto moves in cycles, and knowing where we are in the current cycle is crucial for capturing the best opportunities.
The goal is to spot the bull market peak before the inevitable bear market hits your bags hard.
Since timing the top perfectly is almost impossible, we use various indicators to give us a better shot at taking profits before it's too late.
Below are the 6 indicators we track, with a color-coded system to show how close they are to signalling the market peak:
🟢 Plenty of room to run 🏄
🟡 Getting closer to the top signal, but haven’t yet reached the mark ⚠️
🔴 We’ve hit the market top indicator 🚨
Every Thursday, we update these 6 indicators exclusively for PRO members.
Our advice? Don't wait for all of them to hit 🔴. It's better to take profits as they get closer to that point.
Let's dive in and see if we're anywhere near the top of this bull market. 👇
Already a PRO member? Log in here.
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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.
