MicroStrategy Redeems Debt Amid Bitcoin Gains Taxation

MicroStrategy has announced the redemption of its $1.05 billion tranche of 2027 convertible senior notes. Noteholders have until February 24 to redeem their securities at 100% of the principal amount or convert them into MicroStrategy stock at $142 per share.

This decision follows reports that the company may face taxes on $19 billion in unrealized Bitcoin gains under the Corporate Alternative Minimum Tax (CAMT) introduced by the Inflation Reduction Act. MicroStrategy, along with Coinbase, has urged the IRS to exempt unrealized crypto gains.

The companies argued in a joint letter from January 3 that “CAMT imposes a 15% minimum tax... creating unjust and unintended tax consequences.”

MicroStrategy holds 461,000 BTC worth approximately $49 billion, making it the largest corporate Bitcoin holder globally. Co-founder Michael Saylor posted the Bitcoin tracker for the 12th week in a row, indicating an impending Bitcoin purchase on January 27.

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Trump Signs Executive Orders for Crypto, Banning CBDCs

President Donald Trump signed two executive orders on January 23 to reshape US crypto policy. One order bans the creation and use of central bank digital currencies (CBDCs), while the other establishes the President’s Working Group on Digital Asset Markets, led by crypto czar David Sacks.

The working group will explore regulations for stablecoins and the development of a national digital asset stockpile. In a televised address, Sacks stated the group aims to “make America the world capital in crypto.”

The CBDC ban was positioned as a safeguard for financial stability and individual privacy, signaling support for existing cryptocurrencies like Bitcoin. Blockchain adviser Anndy Lian said, “Trump is betting on the existing crypto market rather than creating government-backed digital dollars.”

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THORChain Halts Withdrawals During $200M Insolvency

THORChain has paused withdrawals from its Lending and Savers products due to a $200 million liability gap in BTC and ETH. Its lending model, which converts collateral into RUNE and burns it, relies heavily on RUNE outperforming BTC and ETH. Recent RUNE price declines have forced the protocol to mint more tokens for loan repayments, creating inflationary pressure and further eroding RUNE's value.

RUNE’s price has dropped 44% in a week, intensifying fears of insolvency. “The situation unfolding with THORChain is eerily similar to what happened with Terra/Luna,” noted Osmosis co-founder Sunny Aggarwal. The co-founder of THORChain has proposed using protocol revenue to compensate lenders over a 2-3 month restructuring plan, but whether this will stabilize the system remains uncertain.

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Jupiter Token Jumps Amid Buyback and Burn Announcement

Jupiter’s JUP token surged 40% after its founder, “Meow,” announced a $3 billion token burn and a new plan to allocate 50% of platform fee revenue for token buybacks. At the “Catstanbul 2025” event, Meow emphasized these steps to strengthen JUP’s value while showcasing the team’s commitment to long-term growth. "JUP is not for expenses; JUP is for alignment," Meow said.

The event also highlighted Jupiter’s strategic expansions, including acquiring a majority stake in memecoin launchpad Moonshot and launching a $10 million AI fund. With these developments, Jupiter aims to position itself as a leader in decentralized exchange innovation. The announcements have boosted investor confidence, reinforcing JUP’s role on Solana.

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Data of the Day

US spot Bitcoin ETFs recorded a cumulative inflow of nearly $40 billion since their launch, with a 7-day streak pushing total net asset value to $123 billion. BlackRock’s iShares Bitcoin Trust led last week’s activity, drawing $1.32 billion of the $1.76 billion total inflows, now holding 2.7% of the total BTC supply. Fidelity ($202.2 million) and ARKB ($172.6 million) also saw significant investments.

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More Breaking News

• Polymarket upsets users by resolving a TikTok ban prediction market to "Yes," raising manipulation allegations and questions about its dispute resolution process.
• Elon Musk explores crypto adoption for government efficiency, with his D.O.G.E. reportedly in talks to use blockchain for tracking spending and payments.
• Nasdaq seeks to amend BlackRock’s iShares Bitcoin Trust (IBIT for in-kind redemptions, aiming to boost efficiency for spot Bitcoin ETF trading.
• The EU is pushing for a digital euro to counter Trump’s promotion of US-backed stablecoins. ECB warns stablecoins could “disintermediate banks” globally.
• Pump.fun sets a single-day revenue record of $15.5 million, fueled by its viral memecoins and continued high transaction volumes.
• Coinbase CEO calls for a token listing overhaul, citing an unsustainable pace of new token creation after backlash over TRUMP and MELANIA tokens.

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