Not rendering correctly? View this email as a web page here.
The Monthly Drop
Covering A to Z with Algoz




If you were forwarded this newsletter and would like to receive it, you may sign up here.


  • A “historic” legislation is set to be passed by the end of Q3
  • A WISE option fit for an institutional investor
  • Which company opted for Bitcoin as its reserve asset 😱

30 DAYS IN 1




Europe’s Crypto Landscape is Getting a Re-haul. The European Union is set to pass its “historic” cryptocurrency legislation in the coming months! The legislation is said to bring much-needed clarification and certainty to the legalities of crypto trading, and thus, will help catalyze the EU/EEA to become an active and robust digital finance (i.e. cryptocurrencies & blockchain technology) hub. Recent updates indicate that all cryptocurrencies will be viewed as financial instruments. The new policy will have very strict, and potentially restrictive, legal parameters when it comes, specifically, to stable coins (blame it on cough*libra*cough), as reported in the June Monthly Drop.



MicroStrategy with a Macro(Impact)Strategy. Publicly traded company, MicroStrategy (Nasdaq: MSTR), has executed its capital allocation strategy and to say that it has left us dumbfounded is the understatement of the century! 21,454 Bitcoins were bought by MicroStrategy with $250 million of its balance sheet capital to make the cryptocurrency the company’s principal reserve asset. In an effort to protect and maximize value for shareholders, this long-term value-adding strategy has come into play at a time where economic and geopolitical events have bought forward the weaknesses of the monetary system and fiat currencies. What these uncertain times and MicroStrategy’s strategy has also managed to do is highlight Bitcoin’s ability to be a great store-of-value, but more so, it has highlighted the potential of the asset to transform from an alternative to the new traditional! It will be interesting to see who follows suit and believe in the pursuit of cryptocurrencies. 



The Wise & the Trusted. The ‘trendiest’ & most popular crypto investment vehicle has been the Grayscale Bitcoin Trust, especially amongst institutional investors, raising over a billion dollars in just the second quarter. A new alternative fund has entered the market that comes with an unbeatable caliber and a name widely recognized! Money manager, Fidelity Investments, through its new founded entity, Fidelity Digital Funds, will be launching a Bitcoin-only fund going by the name, Wise Origin Bitcoin Index Fund I. The fund will be exclusively available to accredited investors willing to purchase a minimum subscription ticket, valued at $100,000.



Square’s Earnings Squared. While Crypto Twitter is brewing with heated debates between HODLERS and speculators, master entrepreneur, Jack Dorsey’s, other enterprise, Square, is reaping major dough from its Cash App. But it is not the fiat transactions that’s adding to the company’s revenues. In Q2 alone, the Cash App generated $875 million in revenues from selling a single cryptocurrency. Despite of crypto’s earning increase by 600% , year-over-year, and multiplying profits by +700%, Square does not include its crypto revenues to its total reported figures. Seems like Dorsey is playing his own tug of war.



What do you prefer? Gold has long been considered the quintessential portfolio diversifier, thanks to its low correlation to other asset classes that usually make an appearance in most investor holdings. The closest asset that can provide similar, if not better, benefits to a portfolio is Bitcoin. Since the March market crash, a surge in Gold-backed ETFs and cryptocurrencies reveals a strong preference by older investors in Gold, while the younger lot seem to want a piece of digital-gold, originally known as Bitcoin.



Research of the Month. The general theme of this month’s newsletter is looking at cryptocurrencies in the macro environment. The decentralized technology’s biggest opponent is central regulatory bodies. Centralized regulatory bodies around the globe are delving into Central Bank Digital Currencies (CBDC). CBDCs are interesting in the sense that they have the potential to be a proponent to our industry or they could completely multi-late the industry. KPMG, Blockset, and HashKey Capital have released a white paper which explores the state of central bank digital currency (CBDC) developments to date.






HONG KONG BLOCKCHAIN WEEK | Hong Kong | SEPT 28 - 30, 2020

TOKEN2049 | Hong Kong | OCT 7 - 8, 2020

AIBC SUMMIT | Malta | NOV 18 - 19, 2020




The Last Drop


Meme of the Month-1







The Monthly Drop

A monthly newsletter by Algoz

© 2020 Algoz | All Rights Reserved


Let's get in touch!
contact us