Cryptocurrency analyst Fred Krueger has suggested a potential link between the recent minting of $2 billion worth of Tether (USDT) and MicroStrategy (MSTR), a business intelligence firm known for its substantial Bitcoin holdings. In a statement released following a discussion on social media, Krueger outlined a scenario where MicroStrategy could be leveraging the newly minted USDT for a significant Bitcoin acquisition spree.
According to Krueger, the $2 billion Tether mint occurred around 2 PM PST. He posits that MicroStrategy is the likely source of the funds, pointing to the company’s history of using USDT to purchase Bitcoin on various exchanges, including Binance. Krueger observed a subsequent rise in Bitcoin’s price, from $97,300 to $98,300, attributing the movement to MicroStrategy’s buying bots coming online.
However, Krueger believes this $2 billion investment is just the tip of the iceberg. He points to MicroStrategy’s recent fundraising activities, including a $3 billion convertible note offering and potentially between $2 billion and $9 billion raised through its at-the-market (ATM) facility. This suggests a potential war chest of up to $12 billion that MicroStrategy could deploy for further Bitcoin purchases.
Krueger anticipates this substantial investment will be deployed before Wednesday, possibly even by Monday, and expects an 8-K filing to follow, revealing the extent of MicroStrategy’s latest Bitcoin acquisition. He estimates the company could acquire up to 120,000 new Bitcoins, potentially impacting its net asset value (mnav), reducing it from 3.3 to 2.6 based on a share price of $426.
Furthermore, Krueger speculates on the potential market implications of this massive Bitcoin buy. He anticipates no trading on Thursday, followed by the possibility of MicroStrategy’s inclusion in the Invesco QQQ Trust (QQQ) on Friday, driven by a projected jump in the company’s share price to over $500.
