{"id":102135,"date":"2024-11-29T17:34:05","date_gmt":"2024-11-29T21:34:05","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=102135"},"modified":"2024-11-29T17:34:09","modified_gmt":"2024-11-29T21:34:09","slug":"solv-protocol-to-launch-onchain-microstrategy","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/solv-protocol-to-launch-onchain-microstrategy\/","title":{"rendered":"Solv Protocol to Launch \u2018onchain MicroStrategy\u2019"},"content":{"rendered":"\n

In a post on Nov. 29, Ryan Chow, the co-founder of Solv Protocol, announced that the company is launching an “onchain MicroStrategy” to introduce yield-bearing Bitcoin reserves<\/a> to decentralized finance (DeFi).<\/p>\n\n\n\n

\"Solv
Solv Protocol to Launch \u2018onchain MicroStrategy\u2019<\/figcaption><\/figure>\n\n\n\n

“We are developing the first-ever On-Chain MicroStrategy, a transparent, permissionless platform that converts Bitcoin from a passive store of value to an active financial powerhouse,” stated Chow.<\/p>\n\n\n\n

Solv's objective, as per Chow, is to establish a “Bitcoin reserve that is not only strategically managed but also generates yield and enhances returns.”<\/p>\n\n\n\n

He needed to provide a specific method by which Solv intended to accomplish this objective.<\/p>\n\n\n\n

Solv is a Bitcoin staking platform <\/a>that provides a variety of yield strategies across more than half a dozen blockchain networks.<\/p>\n\n\n\n

It generates yield by pledging BTC to Bitcoin layer-2s, including Babylon, CoreChain, and DeFi protocols like Jupiter and Ethena.<\/p>\n\n\n\n

According to DefiLlama, Solv manages over $3 billion in total value locked (TVL).<\/p>\n\n\n\n

\"Source:
Source:\u00a0<\/em>Solv Protocol<\/em>\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/figcaption><\/figure>\n\n\n\n

MicroStrategy's Bitcoin acquisition frenzy<\/p>\n\n\n\n

MicroStrategy, a business intelligence firm, essentially transformed into a Bitcoin hedge fund in 2020 when chairman Michael Saylor implemented an ambitious BTC purchasing strategy.<\/p>\n\n\n\n

According to data from Google Finance, MSTR shares have increased by over 450% year-to-date, making it one of the most successful equities in 2024.<\/p>\n\n\n\n

In its Aug. 1 earnings call, MicroStrategy reiterated its commitment to purchasing Bitcoin by establishing a distinctive performance metric: Bitcoin yield.<\/p>\n\n\n\n

The Bitcoin yield is a metric that quantifies the ratio of outstanding shares to BTC holdings, effectively establishing BTC-per-share as a benchmark for corporate performance.<\/p>\n\n\n\n

\"Source:
Source: MicroStrategy<\/em><\/figcaption><\/figure>\n\n\n\n

MicroStrategy's objective is to progressively increase its BTC-per-share ratio, which will benefit shareholders by leveraging its balance sheet, primarily through issuing shares or borrowing, to accumulate Bitcoin.<\/p>\n\n\n\n

MicroStrategy announced on Oct. 30 that it intended to raise $21 billion in equity and an additional $21 billion in debt to finance a three-year, multibillion-dollar BTC buying binge known as the “21\/21 Plan.”<\/p>\n\n\n\n

A benchmark analyst, Mark Palmer, anticipates that MicroStrategy <\/a>will produce a Bitcoin yield of 12.7% in 2025.<\/p>\n\n\n\n

According to Chow, MicroStrategy has transformed Bitcoin into “more than a reserve\u2014it is a catalyst for explosive growth.”.<\/p>\n\n\n\n

He also stated that its success has “redefined the potential of institutional Bitcoin reserves.”<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

In a post on Nov. 29, Ryan Chow, the co-founder of Solv Protocol, announced that the company is launching an “onchain MicroStrategy” to introduce yield-bearing Bitcoin reserves to decentralized finance (DeFi). “We are developing the first-ever On-Chain MicroStrategy, a transparent, permissionless platform that converts Bitcoin from a passive store of value to an active financial […]<\/p>\n","protected":false},"author":12,"featured_media":102140,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[197,23158,23156],"class_list":["post-102135","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-defi","tag-onchain-microstrategy","tag-sol-protocol"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/11\/solv-protocol.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/102135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=102135"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/102135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/102140"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=102135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=102135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=102135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}