Crypto Compass by BitcoinWalletSG #94

Hello Fam,

As we pen this newsletter, Bitcoin is nearing its all-time high, igniting widespread anticipation across the crypto community. This momentum underscores growing institutional interest, with giants like Microsoft recently placing Bitcoin investment as a key voting item in their upcoming shareholder meeting.

Although Microsoft’s board recommends against it, the proposal itself signals Bitcoin’s shifting position from a niche asset to a consideration within the world’s largest corporations. Could we be witnessing the beginning of an institutional trend, with more corporate giants eyeing BTC for long-term strategies? This evolving dynamic sets a powerful tone as we move into the week’s developments.

Microsoft Considers Bitcoin Investment as Shareholder Vote Looms

Microsoft shareholders are set to vote on a proposal to invest in Bitcoin, which was initiated by the National Center for Public Policy Research. Microsoft’s board, however, recommends a “No” vote, stating its Global Treasury team has already reviewed Bitcoin as part of broader asset assessments. With a $3.157 trillion market cap, Microsoft's entry into Bitcoin could see it surpass MicroStrategy and Tesla as the largest publicly traded Bitcoin holder. The outcome of the vote will be announced at the upcoming shareholder meeting on December 10.

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Coinbase Envisions AI Agents Fueling Growth Through Crypto Transactions

Coinbase Ventures shared its vision for a future where artificial intelligence (AI) combines with crypto to reshape the digital economy. The firm highlights an "Agentic Web," where AI agents utilize blockchain to drive economic activity, enabling automated transactions and creating onchain applications. Recent moves, like Coinbase CEO Brian Armstrong’s wallet offer to the AI millionaire bot Truth Terminal, reflect Coinbase's commitment to merging AI and blockchain. The exchange sees crypto’s borderless capabilities as a crucial tool for the AI-driven economy.

Analysts Say MicroStrategy Unlikely to Sell Bitcoin Holdings Despite Debt

BitMEX Research analysts assert that MicroStrategy's significant Bitcoin holdings are unlikely to be sold to cover debt, given its current debt structure and substantial cash flow. With 252,220 BTC worth over $17 billion, MicroStrategy's stock enjoys a premium, driven by what some analysts describe as "intelligent leverage." Despite high volatility, MicroStrategy’s cash flow from its software business could meet interest obligations without liquidating its Bitcoin assets. However, if the firm’s stock premium diminishes or debt pressures rise, selling BTC may become viable, raising concerns about future liquidation risk.

Happenings of the week

• Solana hits all-time high TVL, revenue, volume and more

• Hong Kong plans crypto tax incentives for private funds

• Polymarket CEO highlights the non-partisan nature of their platform

• US gov recovers $19.3M from hacker’s crypto wallet

Calls for SEC Chair Gary Gensler’s Replacement Grow Among Lawmakers

U.S. Representative French Hill (R-AR) has publicly criticized SEC Chair Gary Gensler’s approach to crypto regulation, calling for new leadership at the SEC in 2025. Hill, alongside other lawmakers, argues that Gensler’s approach is overly restrictive and stifles innovation. Ripple CEO Brad Garlinghouse similarly suggested that Gensler's position may be untenable, predicting his departure regardless of the election outcome. As the U.S. experiences increasing cryptocurrency adoption, industry leaders and some policymakers are advocating for more flexible, innovation-friendly regulatory frameworks.

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