Bitcoin’s Safe-Haven Status Confirmed by BlackRock

Happy Monday Bitcoiners, it's Bam here with another Bitcoin update!

Each week, our team at Bitcoin News saves you time by curating the most impactful events into a concise, easy-to-read update.

Notable events this week include:

• MicroStrategy acquires an additional 7,420 Bitcoin.

• Trump becomes the first former president to make a Bitcoin payment.

• The Kingdom of Bhutan quietly accumulates $800 million worth of BTC.

Let’s dive in! ⚡

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LATEST NEWS 📰

🙌 ADOPTION

• First-ever Ark payments were made on the Bitcoin mainnet this Friday, marking the debut of a viable alternative to Lightning for a Bitcoin L2 solution.

• Louisiana becomes the first state to accept Bitcoin payments for government services.

• Fold is now enabling Bitcoin deposits, allowing users to bypass fiat entirely and use Bitcoin directly to pay their bills while continuing to earn Bitcoin rewards.

⚖️ LEGAL

• The SEC approves the listing and trading of options for BlackRock’s spot Bitcoin ETF, $IBIT.

• BNY Mellon, the largest custodian bank in the U.S., has received SEC approval to custody Bitcoin.

• River implements Proof of Reserves, demonstrating that they hold more Bitcoin than the total of their clients’ deposits, and allowing all users on the platform to independently verify it.

📈 MARKETS

• MicroStrategy raises $1.01 billion via convertible notes, buys 7,420 Bitcoin, and redeems higher-interest notes. The company holds 252,220 BTC at an average of ~$39,266 per Bitcoin.

• Federal Reserve cuts interest rates by 50bps for the first time since 2020.

• Tether reports a record-breaking $5.2B profit for the first half of 2024. With $97.6B in U.S. Treasurys, Tether ranks among the top global holders of U.S. debt, surpassing countries like Germany and Australia.

⛏️ MINING

• Cathedra Bitcoin Inc announces a shift from bitcoin mining to data center development. They plan to use Bitcoin as their primary treasury reserve and aim to maximize Bitcoin per share moving forward.

• Bhutan, a small Himalayan nation, has quietly mined nearly 13,011 Bitcoin, now worth $800 million, using renewable energy.

• Five Coinbase rewards, totaling 250 Bitcoin ($16M), were moved this week for the first time since being mined in January/February 2009, when Bitcoin was just 20 days old.

🗳️ POLITICS

• Former US President Donald Trump becomes the first US president to complete a Bitcoin transaction, buying burgers and cokes at NYC's PubKey bar ahead of a campaign rally.

• Samson Mow, JAN3’s CEO, met with Japan's Parliamentary Vice-Minister Junichi Kanda to discuss Bitcoin adoption, nation-state strategies, and US Bitcoin reserves.

• Geyser Fund is removing projects in conflict zones, such as Palestine and Ukraine, to comply with new EU regulations like MiCAR.

BAMS 2 SATS 🧢

This week was packed with positive developments, making it hard to pick a standout. Interest rates were cut by 0.5%, MicroStrategy raised ~$1 billion at 0.6% to pay off higher-interest debt and added 7,420 Bitcoin to its balance sheet. ETFs saw positive inflows as Bitcoin surged to $63,000, and BlackRock received approval to trade options on its Bitcoin ETF.

But one highlight for me was BlackRock’s newly released report, Bitcoin: A Unique Diversifier, where they outline three key reasons why Bitcoin matters:

1. Bitcoin’s hard-coded supply cap of 21 million ensures it cannot be easily debased.

2. Its global, digital nature allows for near-instant, low-cost transfers across borders, eliminating traditional frictions in moving value internationally.

3. Its decentralized, permissionless structure makes it the world’s first truly open-access monetary system.

In the report, they begin by outlining Bitcoin’s long-term value proposition, but what stood out to me was its framing as a “flight to safety,” emphasizing how it has outperformed other asset classes during major geopolitical events.

People often criticize Bitcoin’s immediate volatile response to global events. Since it trades 24/7, it reacts quickly to crises like pandemics and wars. Its high liquidity often causes sharp initial drops, which grab attention. However, what’s less discussed is how swiftly Bitcoin recovers and ultimately outperforms all other assets.

We are yet to see what the 60-day return shows for the Yen Carry Trade unwinding, but so far, Bitcoin has proven to be a better performer than the S&P and gold following major geopolitical events since 2020. It also seems to have performed greatly after the previous U.S. elections in 2020, and with upcoming elections this fall, will history repeat or even rhyme? We will see that soon.

Keep on stacking!
Bam

The NEXT Bitcoin President?

In this week’s exclusive interview, we speak with Danny Baer, Director of Wealth & Asset Management at Meanwhile, the world’s first Bitcoin-denominated life insurance company.

Discover how Meanwhile is revolutionizing future financial planning by offering tax-free loans against Bitcoin-denominated life insurance policies.