How much did MicroStrategy spend on BTC in the past two months?

Author: David Canellis, Blockworks; Translator: Tao Zhu, Golden Finance

As the debate rages over whether Saylor is a once-in-a-generation financial genius or just another over-leveraged trader, stablecoins are bringing more liquidity to cryptocurrencies.

At least, that’s in terms of the raw dollar value currently being injected into the space.

In the past two months alone, MSTR has spent $17.5 billion on Bitcoin, as shown in the orange area of ​​the chart below.

Most of the cash came from buyers of zero-interest convertible bonds.

MicroStrategy’s purchase can be simply viewed as one hand accepting dollars and the other exchanging them for Bitcoin.

MicroStrategy’s purchase can be viewed simply as one hand accepting dollars and the other exchanging them for Bitcoin.

MicroStrategy’s purchase can be viewed ... Fast and cheap liquidity in exchange for exposure.

Over the same period, U.S.-based Bitcoin ETFs saw net inflows increase by $16.5 billion. ETH ETFs saw net inflows of $3 billion, with those flows shown in blue on the chart.

ETFs follow much the same process as MicroStrategy, but without the bonds. They use investors’ cash to buy an equivalent amount of Bitcoin or Ethereum, pass the exposure on to shareholders, and net of fees.

Stablecoins, MicroStrategy's Bitcoin purchases, and ETF inflows converged in November

Then there are stablecoins. Since mid-October, stablecoin issuers have minted a total of $30.8 billion in tokens. More than 92% of that went to USDT and USDC.

Aside from Sky’s USDS and the more exotic alternatives that have emerged, such as Ethena’s USDe and Usual’s USD0, stablecoin managers typically take dollars, buy short-term Treasuries and other cash equivalents, and then issue an equal amount of new tokens to anyone who wires them cash.

Obviously, stablecoin flows aren’t actually the same as ETF inflows or MSTR’s cash pipeline.

But they do represent something similar: a general rush to enter the cryptocurrency market through multiple avenues.

Liquidity has reached nearly $68 billion in the past nine weeks — easily the largest wave of liquidity on record.