BlackRock Faces Record BTC Outflows 📉

Welcome back to the Daily Coinsauce Newsletter! Let’s dive into today’s updates—there’s a lot to unpack!

📅 Today

BlackRock Faces Record BTC Outflows 📉 

BlackRock’s Bitcoin ETF faces record outflows, losing $1.5B in 4 days.

IBIT by BlackRock experienced its largest-ever single-day outflow of $188.7 million yesterday, surpassing the previous record of $72.7 million set just days earlier on Dec. 20.

This marks the fourth consecutive day of outflows, with Bitcoin funds losing over $1.5 billion during this period.

BTC overall is looking a little weak from the demand side :

• Low volumes on support bounces

• Spot ETF outflows rising

• MSTR BTC buys having no speculative impact on price

• Price Discovery Week 7 corrective seasonality in play

BTC needs to surpass $98,500 on a daily close to show some bullish strength, until which the bias remains a little bearish.

Solana Metrics On The Rise 🙏 

Data from Artemis indicates that the Solana network processed 72.8 million transactions on December 23, surpassing the combined total of other major blockchains and setting a new historical record.

Solana has hit over 70M daily transactions, dwarfing Ethereum, Polygon PoS, and others with flat activity.

Since mid-2023, Solana’s growth has skyrocketed, leaving rivals like Base and Arbitrum in the dust.

• Weekly on-chain insights.

• 3-5 altcoin chart setups.

• In-depth Bitcoin price updates.

• Occasional in-depth reports on altcoin gems.

• VC funding roundups.

• Market cycle insights.

• Premium Telegram trading group, and more.

🌎 Other News

• Coinbase Witnesses Total Trading Volume Of $119 Billion. Read more

• Binance to Remove 11 Spot Trading Pairs in Year-End Review. Read more

• Telegram Hits Profitability for The First Time. Read more 

• Forbes releases 7 major predictions for crypto in 2025. Read more

• El Salvador touts Bitcoin success in talks with China. Read more 

📕 Educational

Michael Saylor is going all-in!

MicroStrategy, $MSTR, just said that they want to raise authorized share count by 10 BILLION.

They currently have 330 million shares outstanding, meaning this could increase share count by 3,000%.

What does this mean? Let us explain.

Here's the filing MicroStrategy just made with the SEC.

Total share could would rise from 330 million to 10.33 BILLION if it is approved.

Many are calling this dilutive while others are saying this is the start of a major run for $MSTR.

Let's break it all down here.

First, MicroStrategy's 21/21 plan that was announced in October 2024 is a crucial part of why they are doing this.

The plan was to raise $42 billion by 2027 to finance more #Bitcoin purchases.

It has since achieved that goal, now holding 444,262 BTC worth ~$41.8 billion.

The bullish argument is that this proposal allows MicroStrategy the ability to issue more shares in the future.

This proposal will allow 10 billion shares to be issued, but this does NOT mean 10 billion shares are coming at once.

They can uses these issuances to buy Bitcoin

Currently, MicroStrategy is capped at 330 million shares of common stock with 225 million outstanding.

A 10-1 stock split (non-dilutive) would bring share count to 3.3 billion.

This proposal gives $MSTR flexibility to do future ATMs, convertible note offerings and stock-splits.

Why do they need the ability to do this? Because it's their entire "business model:"

1. Borrow money through 0% convertible notes

2. Buy Bitcoin and drive price higher

3. Sell new shares at premium and buy more bitcoin

4. Repeat

Bears will say this is unsustainable.

The bearish argument is that issuing more shares will objectively be dilutive to shareholders.

In an already levered #Bitcoin play, MicroStrategy is adding dilution and the ability for raise much more debt.

Bears say the company itself it built on unsustainable debt.

After all, the company has negative net income, losing -$340 million during Q3 2024.

They also posted negative cash flows from operating activities and the business itself is declining.

Bears argue that in the wake of a #Bitcoin downturn, $MSTR cannot service this debt.

However, bulls will say that the recent run in MicroStrategy's stock has NOTHING to do with its underlying business.

The underlying business has effectively been in a linear decline for a decade now.

$MSTR is no longer a business, it is a levered proxy for #Bitcoin.

It is worth noting that many large companies have north of 10 billion shares outstanding.

Apple has ~15.2 billion shares outstanding.

Microsoft and Amazon currently have ~7.5 billion and ~10.5 billion shares outstanding.

But, these are fundamentally different companies

For $MSTR to continue buying #Bitcoin, this proposal would need to pass.

Their 330M Class A shares will be tapped out after they finish the current ATM and max out the $21B in convertible bonds.

Of course, MicroStrategy's entire strategy revolves around these issuances.

Now for the million dollar question: will this proposal pass?

The answer is that it will VERY LIKELY pass. Why?

Because Michael Saylor himself currently holds 46.8% of the voting power.

If just ~4% of remaining shareholders approve, then it will pass which is highly likely.

In summary, bulls will call this the next big thing for $MSTR while bears will call this 97% share dilution.

If $MSTR wants to continue raising capital, they will need this to pass.

Which camp are you in?

Source : The Kobeissi Newsletter

📊 Stat of the day

🤣 Meme of the day

That concludes our update for today!

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Disclaimer: None of the content shared in the newsletter is financial advice. Always do your own research and analysis before investing.