Latest news with #Bitcoi
Mint
28-05-2025
- Business
- Mint
Wall Street Can't Beat Michael Saylor's Runaway Crypto Engine
(Bloomberg) -- Wall Street keeps inventing new ways to ride the digital-currency boom — from amped-up ETFs and tokenized funds to structured products — and crypto competitors keep circling. But the trade still delivering the biggest rewards belongs to Michael Saylor. His firm, now branded as Strategy, formerly known as MicroStrategy Inc., pioneered the original capital-markets hack in this era of retail speculation. The playbook? Sell stock and debt. Use the proceeds to buy Bitcoin. Watch the market rip. Then do it all over again. After huge gains last year, his capital-market machine keeps running — for now. Strategy shares are up about 26% this year, beating Bitcoin's 16% gain, and currently rank as one of the best-performers in the Nasdaq 100. Traders are still lavishing a hefty premium on Saylor's stock — well above the value of the firm's Bitcoin holdings — a dynamic no ETF can match. 'Saylor was the first, he was the earliest and he's got the most leverage,' said Matt Maley, chief market strategist at Miller Tabak Co. 'He's not just playing Bitcoin, but also his own stock and the stock market to his advantage — and using leverage at the right times.' That premium acts like rocket fuel in up markets, helping Strategy eclipse the returns of not just Bitcoin, but the ETFs designed to keep up with it. It's outpacing all 74 crypto ETFs in the US bar one. It's even outgunning double-leveraged ETFs tracking the firm itself. MSTX and MSTU — designed to deliver two times the stock's underlying returns — are each down about 1% for the year. These funds reset their exposure every trading day, so even in an uptrend, choppy price action can degrade longer-term returns — known as the volatility drag. Strategy, by contrast, is a self-reinforcing crypto engine. As its stock rallies, it unlocks more balance-sheet firepower, turning market momentum into more crypto accumulation. As Bitcoin has hit records this month, the trade keeps spinning. Wall Street is churning out more diversified products, and the number of Strategy competitors is growing with President Donald Trump's media company the latest to join the fray with a $2.5 billion Bitcoin treasury deal. Still, what's proving hard to replicate is the sheer belief system surrounding Saylor himself. His firm isn't merely a Bitcoin proxy, it's a vehicle for crypto maximalists to express conviction in their faith — a vehicle that's reflexive, levered and narrative-driven. In other words, the stock doesn't just move with Bitcoin, it feeds off it. For retail believers, the premium is the point, and that's put Strategy in a unique category. That means despite the arrival of cheaper, institutional-grade Bitcoin offerings like BlackRock's IBIT, Strategy remains a market story that no ETF can match. The company's market cap has surged from around $1 billion to over $100 billion over the past five years — ever since Saylor first revealed his Bitcoin-buying program. Strategy now holds more than $60 billion of Bitcoin, by far the most of any of its copycats. It has also laid out plans to raise $84 billion to buy more, by selling a combination of shares and fixed-income instruments. The trade cuts both ways, of course. When Bitcoin slumped in 2022, Strategy plunged more. And that was before it leaned even harder into leverage. If the crypto rally reverses, the dynamic that lifts Saylor's stock in the good times could fuel declines in the bad. For now, though, the success has sparked a wave of imitators, with at least 30 publicly listed companies in the US doing so. Meanwhile Bernstein analysts project that the digital currency could see $330 billion in inflows via corporate treasuries before 2030. Saylor has welcomed the trend. 'It's a phenomenal story — for Bitcoiners, it's a huge bull thesis,' said Strahinja Savic, head of data and analytics at FRNT Financial. 'If I had to list off the top three reasons why I'm bullish Bitcoin, the corporate adoption is up there.' --With assistance from Dave Liedtka. More stories like this are available on
Yahoo
12-04-2025
- Business
- Yahoo
Bitcoin Outlook: Key Levels You Need to Watch Amid Economic Uncertainty
The optimism that swept through the crypto space following President Donald Trump's election win has quickly collided with market reality. Once hailed as a champion of digital assets—vowing to make the U.S. the 'crypto capital of the planet'—Trump's recent rollout of broad global tariffs has shaken investor confidence, sending shockwaves through both traditional and crypto markets. Bitcoin, which surged to a record high of nearly $110,000 during the inauguration hype in January, has since retraced sharply, dropping over 10% to fall below the $78,000 mark. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Often viewed as both a hedge against traditional finance and a speculative asset sensitive to liquidity flows, BTC now sits at a critical juncture. The charts are beginning to reflect the tension, with key technical levels taking shape that could dictate the next major move. In this piece, we'll break down the most important areas to watch on the Bitcoin chart and what they might tell us in the days and weeks ahead. Monthly Chart Zooming out is always important, as it provides a clearer picture of the overall direction of a market by reducing short-term noise. From the lows of November 2022 to the highs reached in January, Bitcoin surged by an impressive 611%. Source: TradingView (User & Screenshot – NoticeTrades) Trending: BlackRock is calling 2025 the year of alternative assets. What's important on the monthly chart is the current structure that has been forming since the 2022 bottom. The market has consistently maintained a higher low trend relative to previous swing lows. Bitcoin is currently trading at $80,200 as of Tuesday, which is a crucial level to hold. This level represents the 50% retracement of $79,500 from the previous swing low to the all-time high. It serves as a natural support level where, as an investor or trader, you'd want to see demand. Weekly Chart Zooming in a little closer to the weekly timeframe, we can see more detail regarding the structure that formed the monthly swings. As of the current price action, BTC is holding well above the 50 EMA, which aligns with the 50% retracement level of the overall trading range. Source: TradingView (User & Screenshot – NoticeTrades) Areas to watch on the weekly chart include the 50 EMA and the strength around the current swing. For any continuation in the short to mid-term, price would need to form a higher low here. If the price starts falling below the 50 EMA and continues the overall daily trend, which I will discuss in the next section, we can expect a move down towards the November low. If the price starts falling below the 50 EMA and continues the overall daily trend, which I will discuss in the next section, we can expect a move down towards the November Chart Since mid-January, Bitcoin has been in a bearish market—characterized by the market attacking lows and leaving behind protected highs, which are lower highs. On Sunday, Bitcoin made a run toward the swing low around $76,500 but failed to close below it, which could be a potential sign of strength or demand. Source: TradingView (User & Screenshot – NoticeTrades) What is key to watch here on the daily chart? Since the trend is still bearish, the first detail to look for is a break above a lower high to indicate a potential shift in trend. That level is currently at $88,000. You would want to see price move above the range highs and not reject, as the market did during the inauguration. The potential bull case still stands in my view as long as Bitcoin continues to show relative strength above the Election/November low. However, as mentioned, if the price breaks below the 50 EMA on the weekly, I'd expect that to be the next downside target before any sort of high-time-frame bounce. Read Next: Have $200K saved? Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Bitcoin Outlook: Key Levels You Need to Watch Amid Economic Uncertainty originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Forbes
26-03-2025
- Business
- Forbes
Bitcoin: Digital Gold Or Fool's Gold? Why BTC And Gold Are Breaking Up
Gold is on the rise, and Bitcoin on the decline. (Photo credit should read JUNG YEON-JE/AFP via ... More Getty Images) I called my dad the other night, and we found ourselves discussing investments, as we often do. He surprised me by confidently declaring, 'You should've invested in gold instead of Bitcoin.' His comment wasn't just casual financial advice; it echoed a broader sentiment that's growing among investors lately. Why are gold and Bitcoin, both once seen as safe-haven assets, now moving in distinctly different directions? This divergence is becoming more pronounced and meaningful, affecting investor decisions, regulatory outlooks, and market strategies. Gold, long revered as a safe-haven asset, typically moves inversely to economic optimism. When geopolitical tensions rise, inflation fears spike, or market confidence dwindles, investors rush to gold. This behavior has been consistent throughout economic downturns, including the financial crisis of 2008, where gold prices soared in response to uncertainty. During the 2008 financial crisis, gold prices surged nearly 25% from $870 per ounce in January 2008 to over $1,080 per ounce by December 2009. Bitcoin, while also touted as an inflation hedge, behaves differently. Its movements are heavily influenced by market sentiment, regulatory developments, technological adoption, and liquidity flows, rather than solely economic indicators. Recently, the cryptocurrency market has been particularly impacted by regulatory crackdowns, advancements in blockchain technology, and growing institutional adoption. These factors often drive Bitcoin's volatility independent of traditional market pressures. One of the primary reasons gold and Bitcoin are diverging lies in investor perception and asset functionality. Gold maintains a consistent perception as a stable store of value, underpinned by centuries of human consensus. Central banks hold significant gold reserves, reinforcing its global monetary role. Gold's limited use cases—primarily jewelry, investment, and limited industrial applications—protect its demand profile from rapid technological or regulatory shifts. Bitcoin continues to be volatile. (Photo by) In contrast, BTC had a 42% annualized volatility of daily price movements in 2023 alone, influenced by regulatory shifts and technological updates. For instance, regulatory decisions in major economies, such as the United States, China, and Europe, can trigger sudden and dramatic price swings. Additionally, technological advancements, blockchain scalability issues, or innovations in competing cryptocurrencies can significantly affect Bitcoin's value. The recent divergence can also be attributed to differing investor behaviors in response to macroeconomic environments. Amid rising interest rates and fluctuating inflation rates, investors looking for stability lean towards gold. Gold's tangible nature and its long-standing role in monetary policy provide psychological comfort and confidence. Bitcoin investors often represent a different demographic and risk profile, typically younger investors and tech-savvy institutions drawn to innovation and higher risk-return potentials. The digital asset appeals as both a speculative instrument and a future-oriented investment tied to blockchain innovation. Thus, in periods of uncertainty or technological optimism, Bitcoin can experience swings contrary to gold. The institutional narrative around Bitcoin has evolved rapidly, adding another layer of complexity. Institutional investors, hedge funds, and even some conservative asset managers have increasingly added Bitcoin to their portfolios. Institutional investors. (Photo by Robert Rosamilio/NY Daily News Archive via Getty Images) Institutional investors now hold approximately 7% of Bitcoin's total circulating supply, up from under 1% just three years ago. While this adds legitimacy, it also makes Bitcoin susceptible to large-scale liquidity shifts driven by institutional buying or selling. Gold, by contrast, has long been embedded within institutional investment frameworks, offering a predictable and less volatile profile. Regulatory clarity in gold trading, storage, and investment is well-established, ensuring consistent institutional participation without sudden disruptions. Furthermore, recent regulatory moves have uniquely impacted Bitcoin. Regulatory actions in the United States in 2023 alone caused short-term declines of up to 15% in Bitcoin's market value following announcements by the SEC. Authorities worldwide have begun defining clearer frameworks around cryptocurrencies. Regulatory tightening in the U.S., outright bans in certain jurisdictions, or favorable regulatory environments elsewhere can all influence Bitcoin drastically, reinforcing its divergence from gold. In chatting with Mati Greenspan, CEO of Quantum Economics, during his livestream, he commented, "The divergence we're witnessing between gold and Bitcoin reflects deeper shifts in investor psychology and market structure. While gold continues to offer predictability during uncertain economic times, Bitcoin's volatility highlights its role as both a speculative asset and a bet on digital transformation. Investors must recognize these distinct characteristics to effectively navigate and diversify their portfolios." Mati Greenspan, CEO of Quantum Economics, hosting his weekly livestream. Understanding the divergence between gold and Bitcoin matters significantly for investors, policymakers, and the broader market for several reasons. Firstly, this divergence underscores the reality that Bitcoin, despite comparisons, is fundamentally different from traditional commodities like gold. Investors relying on Bitcoin purely as an inflation hedge may misjudge the asset's behavior, resulting in unanticipated risks. Thus, portfolio diversification strategies must account for Bitcoin's unique characteristics rather than treating it as a direct substitute for gold. Secondly, regulators must recognize that traditional regulatory frameworks suitable for gold and other commodities may not directly apply to cryptocurrencies like Bitcoin. Regulatory clarity tailored to crypto-specific characteristics is essential to stabilize market dynamics and protect investor interests. Lastly, from a market standpoint, the divergence highlights shifts in global economic and investment paradigms. As markets transition towards digitalization and decentralization, assets like Bitcoin may increasingly decouple from traditional market behaviors, driven instead by technology adoption cycles and digital infrastructure developments. This trend could redefine the benchmarks and metrics investors use to evaluate asset performance. Looking ahead, the relationship between gold and Bitcoin is likely to remain complex and divergent. While gold will continue to offer stability, predictability, and traditional safe-haven characteristics, Bitcoin will likely embody risk, innovation, and digital transformation. Both assets will likely coexist, serving different investor needs and preferences. As digital assets become increasingly mainstream, Bitcoin's correlation with technology sectors, particularly blockchain and fintech, might strengthen, further distancing itself from gold. Meanwhile, gold may become even more appealing during periods of intense technological disruption or geopolitical instability. The current divergence between gold and Bitcoin serves as a critical reminder to investors, regulators, and the financial market about the importance of clearly understanding the distinct roles and behaviors of diverse asset classes. Rather than seeing Bitcoin purely as digital gold, recognizing its unique dynamics can guide better investment strategies, regulatory policies, and market analysis. Ultimately, embracing these differences between Bitcoin and Gold rather than oversimplifying them could help investors harness both assets more effectively, achieving balanced portfolios that thrive across traditional stability and innovative volatility.
Yahoo
06-03-2025
- Business
- Yahoo
Trumps Tariffs: 1 Canadian Stock to Dump and 1 to Buy Immediately
Written by Amy Legate-Wolfe at The Motley Fool Canada Oh, tariffs. Those pesky tools of trade wars keep economists and investors on their toes. With the spectre of Trump's tariffs looming once again, it's time to reassess our portfolios. Let's dive into two Canadian mid-cap stocks: Linamar (TSX:LNR) and Hut 8 (TSX:HUT). We'll explore why you might want to part ways with one and cozy up to the other. Linamar is a heavyweight in the auto parts manufacturing sector, supplying components to major automakers. Many of which are based in the United States. In the third quarter (Q3) of 2024, Linamar reported sales of $2.64 billion, marking an 8.3% increase from the previous year. The Industrial segment saw a 24% rise, largely due to MacDon's market share growth and the Bourgault acquisition. Net earnings were $144.6 million, a 6.1% increase from Q3 2023, with an earnings per share (EPS) of $2.35, up by 6.3%. Free cash flow was notably strong at $270 million, a significant improvement over previous years. However, the company's heavy reliance on U.S. customers could spell trouble if tariffs are reinstated. Increased costs and potential shifts in demand could put the brakes on Linamar's growth trajectory. Investors should keep a close eye on trade developments and consider whether Linamar's U.S. exposure aligns with their risk tolerance. On the flip side, Hut 8 offers a compelling case for investment in these uncertain times. As a leading cryptocurrency mining company, Hut 8 is less tethered to traditional trade channels and more aligned with the burgeoning digital economy. In Q4 2024, Hut 8 reported revenue of $43.7 million and net income of $0.9 million. Plus, it reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $5.6 million. The company mined 234 Bitcoin at a weighted average revenue per Bitcoin mined of $61,025. That's compared to a cost to mine of $31,482. Hut 8 held 9,106 Bitcoin in reserve with a market value of $576.5 million as of Sept. 30, 2024. For the full year 2024, Hut 8 reported revenue of $162.4 million, net income of $331.4 million, and adjusted EBITDA of $555.7 million. The company also achieved a 30% reduction in energy costs per megawatt-hour in Q4 2024 compared to the same period in 2023. While Linamar's strong financial performance is commendable, the looming threat of tariffs introduces a layer of uncertainty that could impact its U.S.-centric operations. The auto sector is going to face some serious challenges both in Canada and the United States. And until those challenges are addressed, investors may want to look elsewhere. Conversely, Hut 8's focus on digital assets and impressive financial results position it as a resilient choice in the face of trade tensions. Investors seeking to navigate the choppy waters of potential tariffs might consider reallocating resources from traditional manufacturing to the digital frontier represented by Hut 8, especially as the company expands its Bitcoin reserve and reduces its costs. In these unpredictable times, staying informed and agile is key. As always, conduct thorough research and consult with financial advisors to ensure your investment decisions align with your financial goals and risk tolerance. The post Trumps Tariffs: 1 Canadian Stock to Dump and 1 to Buy Immediately appeared first on The Motley Fool Canada. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $50 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now. Claim your FREE 5-stock report now! More reading 10 Stocks Every Canadian Should Own in 2024 [PREMIUM PICKS] It's Time to Buy: 1 Canadian Stock That Hasn't Been This Cheap in Years Where to Invest Your $7,000 TFSA Contribution 3 No-Brainer TSX Stocks to Buy With $300 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Bitcoin and Linamar. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
Associated Press
31-01-2025
- Business
- Associated Press
VanEck Announces HODL Share Split
NEW YORK--(BUSINESS WIRE)--Jan 31, 2025-- VanEck is pleased to announce a 4-for-1 forward stock split for the VanEck Bitcoin ETF (Cboe: HODL). Shares of the Fund will begin trading on the split-adjusted basis at market open on February 14, 2025. The Fund will retain the same CUSIP and continue to trade on The Cboe Exchange under the same ticker symbol, as set forth below. There will be no impact on the overall value of the ETP. The Depository Trust Company ('DTC'), the registered owner of all Fund shares, has been notified of the split and has been instructed to adjust each shareholder's investment accordingly. 2/12/2025 2/13/2025 2/14/2025 VanEck periodically assesses its ETP lineup to determine when and where share splits would most benefit investors. A number of factors are considered, including ETP market price, bid-ask spread and trading volume. About VanEck VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm's drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry. Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of December 31, 2024, VanEck managed approximately $113.8 billion in assets, including mutual funds, ETFs and institutional accounts. The firm's capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck's passive strategies. Since our founding in 1955, putting our clients' interests first, in all market environments, has been at the heart of the firm's mission. Important Disclosures This material must be preceded or accompanied by a prospectus. An investment in the VanEck Bitcoin ETF ('HODL' or the 'Trust') may not be suitable for all investors. Before investing you should carefully consider the Trust's investment objectives, risks, charges and expenses. Investing involves significant risk, and you could lose money on an investment in the Trust. The value of Bitcoin is highly volatile, and the value of the Trust's shares could decline rapidly, including to zero. You could lose your entire principal investment. For a more complete discussion of the risk factors relative to the Trust, carefully read the prospectus. The Trust's investment objective is to reflect the performance of the price of Bitcoin less the expenses of the Trust's operations. The Trust is a passive investment vehicle that does not seek to generate returns beyond tracking the price of Bitcoin. The Trust is not an investment company registered under the Investment Company Act of 1940 ('1940 Act') or a commodity pool for the purposes of the Commodity Exchange Act ('CEA'). Shares of the Trust are not subject to the same regulatory requirements as mutual funds. As a result, shareholders of HODL do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA. An investment in the Trust is subject to risks which include, but are not limited to, the historically and potentially future extreme volatility of bitcoin, various potential factors that may adversely affect the liquidity of Trust shares, the limited history of the Index from which the value of bitcoin and hence the value of Trust shares will be determined, potential threats to the Trust's bitcoin custodian, and the unregulated nature and lack of transparency surrounding the operations of bitcoin trading platforms, all of which may ultimately adversely affect the value of shares of the Trust. Please note that this is not an exhaustive list of risks pertaining to the Trust. Please read carefully the prospectus for a complete list of potential risks. Because shares of the Trust are intended to reflect the price of the Bitcoin held in the Trust, the market price of the shares is subject to fluctuations similar to those affecting Bitcoin prices. Additionally, shares of the Trust are bought and sold at market price, not at net asset value ('NAV'). Brokerage commissions will reduce returns. Trust shares trade like stocks, are subject to investment risk and will fluctuate in market value. The value of Trust shares relates directly to the value of the Bitcoin held by the Trust (less its expenses), and fluctuations in the price of Bitcoin could materially and adversely affect an investment in the shares. The price received upon the sale of the shares, which trade at market price, may be more or less than the value of the Bitcoin represented by them. The Trust does not generate any income, and as the Trust regularly issues shares to pay for the Sponsor's ongoing expenses, the amount of Bitcoin represented by each Share will decline over time. This content is published in the United States for residents of specified countries. Investors are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this content. Nothing in this content should be considered a solicitation to buy or an offer to sell shares of any investment in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction, nor is it intended as investment, tax, financial, or legal advice. Investors should seek such professional advice for their particular situation and jurisdiction. The Sponsor of the Trust is VanEck Digital Assets, LLC. The Marketing Agent for the Trust is Van Eck Securities Corporation. VanEck Digital Assets, LLC., and Van Eck Securities Corporation are wholly-owned subsidiaries of Van Eck Associates Corporation. Craft & Capital SOURCE: VanEck Copyright Business Wire 2025. PUB: 01/31/2025 06:08 PM/DISC: 01/31/2025 06:09 PM
