Solv launches ‘onchain micro strategy’
Solv is preparing to launch an “onchain MicroStrategy” to bring Bitcoin (BTC) stock to decentralized finance (DeFi), which will produce the Solv protocol, Ryan Chow, co-founder of Solv, said in a post on November 29.
“We are building our first On-Chain Micro Strategy – a platform that transforms transparently permissionless Bitcoin from a functional financial powerhouse,” Chow said.
According to Chow, Solv aims to build a strategically managed “Bitcoin reserve that not only preserves wealth, but also generates yield and expands profits.”
Solv has not explained exactly how it intends to achieve this goal.
Solv is a Bitcoin staking platform that offers multiple profit strategies on over half a dozen blockchain networks.
It creates a product that puts BTC to Bitcoin Layer-2s, including Babylon and Corechain, as well as DeFi protocols like Jupiter and Etena.
Solv currently controls more than $3 billion in total value locked (TVL), according to Defillama.
Source: Solv Protocol
Microstrategy Bitcoin buying speed
MicroStrategy is a business intelligence firm that is part of the BBC's hedge fund, when its chairman, Michael Saylor, launched a big BTC buying strategy in 2020.
One of the best-performing stocks in 2024, MSTR shares are up more than 450% year-to-date, according to data from Google Finance.
During its August 1st earnings call, MicroStrategy doubled down on BTC purchases based on a unique performance measure: Bitcoin yield.
Bitcoin yield measures the ratio of BTC holdings to outstanding shares and effectively positions BTC-per-share as a lodestar for corporate performance.
Source: Microstrategy
MicroStrategy aims to leverage its balance sheet—specifically by borrowing or issuing shares—to benefit shareholders by gradually increasing the BTC-per-share ratio of Bitcoin.
On October 30, MicroStrategy announced plans to raise $21 billion in equity and another $21 billion in debt for a three-year, multibillion-dollar BTC purchase dubbed the “21/21 Plan.”
Benchmark analyst Mark Palmer predicts that MicroStrategy will generate a 12.7% Bitcoin yield by 2025.
Microstrategy has “turned Bitcoin into more than a reserve—it's a catalyst for explosive growth,” Chow said.
He added that the success “illustrates what is possible for institutional bitcoin stocks.”
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