Latest news with #Saylor'sStrategy
Time of India
3 days ago
- Business
- Time of India
Bitcoin power shift has large holders dumping 500,000 coins
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel A silent transfer of control is reshaping the $2.1 trillion Bitcoin market.A steady stream of sales by long-time whales - miners, offshore funds and anonymous wallets - is being matched almost one-for-one by institutional players like ETFs, corporates and asset managers. The result: Bitcoin is struggling to break out of its record high around $110,000, volatility is evaporating, and its place in the investment landscape is being a flurry of bullish headlines - from corporate treasuries embracing Bitcoin to the Trump administration's full-throated crypto endorsement - the largest digital currency has remained stuck in its trading range for months. Underneath the surface, long-dormant whales have been trimming positions just as institutions ramp up their buying. And this switchover is gradually recasting Bitcoin's identity from a high-octane trade to a slow-burn the past year, large holders, or Bitcoin whales, have offloaded more than 500,000 Bitcoin - worth over $50 billion at current prices - according to data compiled by 10x Research. That's roughly equal to the net inflows into the wildly successful US exchange-traded funds since their approval. And it's not far off from the $65 billion amassed over the past five years by crypto treasury pioneer Michael Saylor and his firm, now known as of these whales trace back to Bitcoin's earliest cycles, when it traded far below current levels. In some cases, whales aren't simply selling, they're swapping tokens for deals tied to the stock market, bypassing the open market."What we're seeing is a churning in the base," said Edward Chin, co-founder of Parataxis Capital. "A less covered driver and potential reason for the churn and increasing network activity seems to be driven by whales converting their BTC into equity exposure through in-kind contributions of BTC into financing transactions tied to the public markets."Institutions - from ETFs and Saylor's Strategy to dozens of corporate imitators - now control about a quarter of all Bitcoin in circulation. Back in 2020, researcher Flipside Crypto estimated that about 2% of the anonymous ownership accounts that can be tracked on the cryptocurrency's blockchain controlled 95% of the digital asset. The power dynamic is shifting fast."Crypto is becoming less of an outlier and more established as a legitimate asset class," said Rob Strebel, head of relationship management at the trading firm DRW, which includes crypto-focused arm Cumberland. Alongside that shift, "we expect to see a compression in volatility."That appears to be already taking place, dampening one of the most alluring aspects of Bitcoin to many traders. A closely watched measure of price swings has declined to the lowest level in about two years, according to Deribit's BTC Volatility Index. The gauge monitors the 30-day forward-looking annualized expectations of the whales cut exposure, ETFs, treasury companies and other institutions combined have absorbed nearly 900,000 coins in the past year, according to 10x Research. These players now hold about 4.8 million coins, out of about 20 million Bitcoin in even as institutions bring stability and legitimacy to the asset class, some observers warn they're also providing the long-awaited exit ramp for whales, raising the risk that it's retail and retirement investors left holding the bag if crypto sentiment falters."The goal for a long time has always been to make Bitcoin a palatable asset for institutional investors to provide exit liquidity in volume so the whales could cash out," said Hilary Allen, a law professor at American University's Washington College of Law, a long-time crypto two straight years in which the price more than doubled, Bitcoin is still hovering around levels reached at the start of the year, despite President Donald Trump's pro-crypto analysts now expect Bitcoin's appreciation to be capped at 10% to 20% a year. That's a far cry from 2017's almost 1,400% surge that pushed the token into the mainstream."Bitcoin is probably more like boring dividend stock over time," said Jeff Dorman, chief investment officer at Arca. "On average it goes higher every year, but by less and less amount. It becomes more of an attractive retirement asset."Still, the picture is incomplete. Not all whale activity is visible, and Bitcoin could prove ever-volatile soon enough, especially if a new market catalyst one big risk right now is imbalance: If Bitcoin whales resume selling at scale while institutional flows plateau, the market could tip into steep declines. Outflows of just 2% in 2018 and 9% in 2022 triggered Bitcoin price drops of 74% and 64%, respectively, according to 10x Research."We are nearing a point where the market is hitting its peak," said Fred Thiel, chief executive officer of Bitcoin miner MARA Holdings Inc., which has yet to sell any of its Bitcoin holdings. "My personal belief, however, is we are in a very different market dynamic today."All told, the shift from anonymous whales to institutional allocators may help sustain the current market dynamic for an extended period."This can go on for a long time - years," said Markus Thielen, CEO of 10x Research. "It's more of a slow grind, where Bitcoin becomes more of a 10%-20% asset. The nature of Bitcoin really changes."
Yahoo
6 days ago
- Business
- Yahoo
The Great Bitcoin Power Shift Has Large Holders Dumping 500,000 Coins
(Bloomberg) -- A silent transfer of control is reshaping the $2.1 trillion Bitcoin market. NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds Massachusetts to Follow NYC in Making Landlords Pay Broker Fees What Gothenburg Got Out of Congestion Pricing Foreign Buyers Swoop on Cape Town Homes, Pricing Out Locals A steady stream of sales by long-time whales — miners, offshore funds and anonymous wallets — is being matched almost one-for-one by institutional players like ETFs, corporates and asset managers. The result: Bitcoin is struggling to break out of its record high around $110,000, volatility is evaporating, and its place in the investment landscape is being reshaped. Despite a flurry of bullish headlines — from corporate treasuries embracing Bitcoin to the Trump administration's full-throated crypto endorsement — the largest digital currency has remained stuck in its trading range for months. Underneath the surface, long-dormant whales have been trimming positions just as institutions ramp up their buying. And this switchover is gradually recasting Bitcoin's identity from a high-octane trade to a slow-burn allocation. Over the past year, large holders, or Bitcoin whales, have offloaded more than 500,000 Bitcoin — worth over $50 billion at current prices — according to data compiled by 10x Research. That's roughly equal to the net inflows into the wildly successful US exchange-traded funds since their approval. And it's not far off from the $65 billion amassed over the past five years by crypto treasury pioneer Michael Saylor and his firm, now known as Strategy. Many of these whales trace back to Bitcoin's earliest cycles, when it traded far below current levels. In some cases, whales aren't simply selling, they're swapping tokens for deals tied to the stock market, bypassing the open market. 'What we're seeing is a churning in the base,' said Edward Chin, co-founder of Parataxis Capital. 'A less covered driver and potential reason for the churn and increasing network activity seems to be driven by whales converting their BTC into equity exposure through in-kind contributions of BTC into financing transactions tied to the public markets.' Institutions — from ETFs and Saylor's Strategy to dozens of corporate imitators — now control about a quarter of all Bitcoin in circulation. Back in 2020, researcher Flipside Crypto estimated that about 2% of the anonymous ownership accounts that can be tracked on the cryptocurrency's blockchain controlled 95% of the digital asset. The power dynamic is shifting fast. 'Crypto is becoming less of an outlier and more established as a legitimate asset class,' said Rob Strebel, head of relationship management at the trading firm DRW, which includes crypto-focused arm Cumberland. Alongside that shift, 'we expect to see a compression in volatility.' That appears to be already taking place, dampening one of the most alluring aspects of Bitcoin to many traders. A closely watched measure of price swings has declined to the lowest level in about two years, according to Deribit's BTC Volatility Index. The gauge monitors the 30-day forward-looking annualized expectations of volatility. While the whales cut exposure, ETFs, treasury companies and other institutions combined have absorbed nearly 900,000 coins in the past year, according to 10x Research. These players now hold about 4.8 million coins, out of about 20 million Bitcoin in circulation. But even as institutions bring stability and legitimacy to the asset class, some observers warn they're also providing the long-awaited exit ramp for whales, raising the risk that it's retail and retirement investors left holding the bag if crypto sentiment falters. 'The goal for a long time has always been to make Bitcoin a palatable asset for institutional investors to provide exit liquidity in volume so the whales could cash out,' said Hilary Allen, a law professor at American University's Washington College of Law, a long-time crypto skeptic. After two straight years in which the price more than doubled, Bitcoin is still hovering around levels reached at the start of the year, despite President Donald Trump's pro-crypto agenda. Some analysts now expect Bitcoin's appreciation to be capped at 10% to 20% a year. That's a far cry from 2017's almost 1,400% surge that pushed the token into the mainstream. 'Bitcoin is probably more like boring dividend stock over time,' said Jeff Dorman, chief investment officer at Arca. 'On average it goes higher every year, but by less and less amount. It becomes more of an attractive retirement asset.' Still, the picture is incomplete. Not all whale activity is visible, and Bitcoin could prove ever-volatile soon enough, especially if a new market catalyst emerges. Regardless, one big risk right now is imbalance: If Bitcoin whales resume selling at scale while institutional flows plateau, the market could tip into steep declines. Outflows of just 2% in 2018 and 9% in 2022 triggered Bitcoin price drops of 74% and 64%, respectively, according to 10x Research. 'We are nearing a point where the market is hitting its peak,' said Fred Thiel, chief executive officer of Bitcoin miner MARA Holdings Inc., which has yet to sell any of its Bitcoin holdings. 'My personal belief, however, is we are in a very different market dynamic today.' All told, the shift from anonymous whales to institutional allocators may help sustain the current market dynamic for an extended period. 'This can go on for a long time — years,' said Markus Thielen, CEO of 10x Research. 'It's more of a slow grind, where Bitcoin becomes more of a 10%-20% asset. The nature of Bitcoin really changes.' SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too How to Steal a House America's Top Consumer-Sentiment Economist Is Worried China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P.
Business Insider
09-06-2025
- Business
- Business Insider
Meme Stock GameStop (GME) Is About to Report Q1 Earnings Tomorrow. Here Is What to Expect
Video game retailer GameStop (GME) is set to report its quarterly earnings results tomorrow, June 10. The stock has surged about 32% over the past three months, thanks to meme stock revival and the company's surprise investment in Bitcoin (BTC). This recent momentum comes even as concerns linger over the long-term outlook for GameStop's core gaming operations. Confident Investing Starts Here: Wall Street analysts expect the company to report earnings of $0.08 per share, versus a loss of $0.12 in the year-ago quarter. However, revenues are expected to decline by 15% from the year-ago quarter to $750 million, according to data from the TipRanks Forecast page. Recent Event Ahead of the Q1 2025 print, GameStop invested in Bitcoin, following a strategy similar to Michael Saylor's Strategy (MSTR), a software company that turned into a serial Bitcoin acquirer. In a late-May filing, GameStop revealed it had purchased 4,710 Bitcoins valued at $513 million. The acquisition marked GameStop's first Bitcoin purchase since it unveiled its plans in March to start investing in crypto. As earnings approach, investors will be watching closely for any updates on the company's digital strategy and sales trends in its retail segment. GME's Q4 Shows Profit Surprise In the last reported Q4 quarter, GameStop surprised with an earnings per share (EPS) of $0.30, far ahead of Wall Street's $0.08 estimate. The company posted a full-year profit of $131.3 million in 2024, a sharp turnaround from just $6.7 million the year before, mainly due to aggressive cost-cutting efforts. However, revenue dropped 28.5% year-over-year to $1.28 billion in Q4, missing analyst expectations of $1.48 billion. Full-year revenue came in at $3.82 billion, down from $5.27 billion in 2023. The company continues to see weakness in its core video game hardware and software segments. According to Main Street Data, GME's Hardware and Accessories segment has been on a downward trend, with recent quarters showing significant declines from earlier levels. Options Traders Anticipate a Large Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting an 11.05% move in either direction. Is GME Stock a Buy, Sell, or Hold? GameStop's fundamentals and unpredictable trading patterns have led many Wall Street analysts to take a step back from covering the stock. One of the few analysts still covering this stock is Michael Pachter of Wedbush, who continues to maintain a Sell rating. According to him, he sees more than 54% downside for GameStop based on his price target of $13.5 per share.
