What is killing two birds with one stone: The value and prospects of TRON's micro strategy
Recently, everyone knows about the big news that TRON has achieved a reverse merger listing on the US stock market through a partnership with NASDAQ-listed company SRM, while SRM will replicate the 'Bitcoin MicroStrategy' model to launch the 'TRON MicroStrategy', listing TRX as a reserve asset on its balance sheet and starting a coin hoarding mode. After the news broke, SRM's stock price surged 11 times to $12.8.
So, does everyone understand why it’s so crazy?
First, I need to explain what Bitcoin MicroStrategy is, which is a company called MicroStrategy that raises funds by issuing convertible bonds and equity to continuously increase its Bitcoin holdings as a long-term corporate asset reserve.
So how has the outcome of this micro strategy deployment been?
MicroStrategy's first purchase of Bitcoin was in August 2020, when it bought 21,454 Bitcoins for $250 million to initiate its strategic reserve. As of now, MicroStrategy holds a total of 592,345 Bitcoins, valued at $64 billion, with an average cost of $70,681.
It has been almost five years since the initiation of the Bitcoin strategic reserve, and MicroStrategy's stock price has risen from $11.78 to a peak of $543, with the Bitcoins held accounting for about 2.9% of the total supply, resulting in an unrealized gain of $22 billion.
History seems to be repeating itself with SRM and TRX.
Currently, SRM's stock price is about $8.7, which is very close to the stock price when MicroStrategy initiated its Bitcoin strategy, and both have adopted the same model, with Bitcoin MicroStrategy and TRX MicroStrategy targeting two different mainstream tokens.
Over the past five years, MicroStrategy's stock price has increased more than fifty times, reaching a market capitalization of hundreds of billions, while Bitcoin's price has increased tenfold. So, will the smaller market capitalizations of SRM and TRX create an even higher myth of appreciation?
@justinsuntron #TRONEcoStar @trondaoCN