Weekly Insights #6: Bitcoin deserves an emoji
A coalition of over 20 bitcoin companies is advocating for an official bitcoin emoji and calling on the community to sign a petition. According to the coalition, bitcoin, the symbol of financial freedom and technological innovation, deserves an emoji. Signing the petition could potentially lead to the addition of the emoji to all digital keyboards. In this weekly insights, we focus on this, as well as on the Grayscale Bitcoin Mini Trust, Michael Saylor's desire to buy more bitcoin, and Adopting Bitcoin Arnhem.
Bitcoin deserves an emoji
Why does bitcoin deserve an emoji now? After 15 years of growing adoption and an estimated 400 million users, it's high time for an emoji. Also, the bitcoin halving is approaching. This is an excellent opportunity to give bitcoin the recognition it deserves.
The petition 'Bitcoin Deserves an Emoji' aims to integrate bitcoin into our daily communication by adding the emoji to all digital keyboards.
It's not just about an emoji; it's a mass movement. The new, widespread initiative for a bitcoin emoji, previously rejected in 2020, demonstrates how significant bitcoin has become in our daily lives, according to the initiators.
According to Unicode, 92% of internet users worldwide use emojis in their digital communication. Originating from Japan in the 1990s, emojis have evolved from simple icons to essential communication elements that reflect our values and times.
Sign the petition: bitcoinemoji.org.
Grayscale Bitcoin Mini Trust
On Tuesday, Grayscale, the issuer of the Grayscale Bitcoin Trust ETF (GBTC), announced their intention to launch a new version of the ETF called the Grayscale Bitcoin Mini Trust ETF (BTC) with lower costs. With annual management fees of 1.5%, GBTC is relatively expensive compared to other spot bitcoin ETFs, such as BlackRock's (IBIT) with 0.25% and VanEck's (HODL) with 0.20%.
Grayscale has requested permission from the U.S. Securities and Exchange Commission (SEC) to split off a portion of GBTC and launch the new product BTC on the NYSE Arca.
If approved, existing GBTC investors would benefit from lower total costs and would not have to pay capital gains tax when transitioning to the new fund.
Although the exact costs are not yet known, they are expected to be competitive with some of the cheaper bitcoin ETFs on the market, according to a source at Grayscale.
Despite outflows of over $10 billion from GBTC since the approval of spot bitcoin ETFs in January, the fund has maintained its value thanks to the rising bitcoin price. Nevertheless, costs remain a significant factor.
This strategic move by Grayscale could potentially reduce or halt the outflow from GBTC. Meanwhile, Grayscale has made substantial profits with GBTC, which could be beneficial for the Digital Currency Group (DCG), the holding of Grayscale, especially given the bankruptcy of Genesis, a subsidiary of the group.
Michael Saylor wants to buy more bitcoin
Michael Saylor, the American entrepreneur who began buying bitcoin on behalf of his company MicroStrategy in 2020, has recently expressed his desire to buy even more bitcoin. Recently, the company raised a whopping $800 million by issuing convertible notes with a coupon rate of 0.625%, maturing in 2030.
These convertible notes offer investors the opportunity to convert them into cash, MicroStrategy shares, or a combination of both. With the proceeds from this issuance, MicroStrategy purchased an additional 12,000 bitcoins worth $821.7 million.
A few days later, Michael Saylor decided to make a similar move again, with MicroStrategy planning to issue another $525 million in convertible notes, this time with a coupon rate of 0.875% and a maturity date in 2031.
The company currently holds 205,000 bitcoins on its balance sheet, but it is likely that this number will continue to increase in the future. If so, MicroStrategy will have 1% of the total amount of bitcoin in circulation in the near future.
Interestingly, the publicly traded exchange Coinbase now seems to be following a similar strategy to Michael Saylor, by also issuing convertible notes worth $1 billion.
Instead of diluting shares, the company opts to offer notes. With the proceeds from this issuance, Coinbase plans to pay off debts, cover any hedged call options, and potentially acquire other companies.
Adopting Bitcoin Arnhem
Arnhem is known as the bitcoin city of the Netherlands. Ten years ago, companies such as the supermarket Spar and the fast food restaurant Burger King embraced bitcoin as a payment method. To celebrate the tenth anniversary of Arnhem Bitcoinstad, Adopting Bitcoin Arnhem will be held on May 25th, naturally in Arnhem.
The mastermind behind this groundbreaking event is Patrick van der Meijde, the visionary force behind Arnhem Bitcoinstad and former chairman of the United Bitcoin Companies the Netherlands (VBNL).
Adopting Bitcoin Arnhem will be entirely dedicated to stimulating the practical use of bitcoin. The event will take place at Luxor Live, a well-known venue in Arnhem. The lineup of speakers is impressive, featuring names like Aaron van Wirdum, Peter Todd, and Giacomo Zucco.
In addition to the main program, numerous side events are planned to show visitors from abroad more of Arnhem than just the city center.
Want to know more about Adopting Bitcoin Arnhem? Listen to episode #315 B of the Cryptocast (Dutch) and order tickets at: adoptingbitcoinarnhem.com.
