Michael Sailor and strategy once again sold some stock to raise more cash for all of their dividends and preferred instruments and obligations. Meanwhile, Morgan Stanley finally launching Bitcoin, Ethereum and Solana spot trading services and a lot more. We're going to dive into all of that right now on the Daily Wolf. Let's go.
What is up everybody? Welcome to the Daily Wolf on Yahoo Finance. I am your host Scott Melker, also known as The Wolf of All Streets. As you can see, we are not in the studio. We are on location. It's going to be an exciting week. We're going to be at some conferences, doing some incredible interviews with Robin Hood, Coinbase and other that will be presented for you right here on the Daily Wolf. But today, we are going to once again dig into the news of the day as usual and you know, repetitively on Monday, I guess we have to say that our biggest story is whatever Michael Sailor and strategy do, but luckily it's becoming a smaller story. Here it is right here.
Strategy increases USD reserve by 225 million, now holds Bitcoin reserve of 843,775 and USD reserve of 3.2 billion dollars. So listen, we know that the market has been trying to price what strategy will do. As some of my guests have said in the in the past, at this point, I think people just wanted to know that Sailor and strategy were not irrational actors, and clearly they're proving that to the market right now by raising enough cash to cover all of their obligations. This now puts 22 months of payments covered by a 3.2 billion dollar cash reserve. Now listen, if we're being honest, like the man obviously said that cash was trash for years. $3.2 billion is quite a sizable recycling bin. But the fact is, this is what the market wanted to see. He is now basically out of the market as a Bitcoin buyer. Nobody's expecting him to buy Bitcoin anymore and the price has still continued to float up, which I think is a very positive narrative because obviously bears were saying that he was the only buyer in the market, that the floor at 60,000 was going to drop right out if he stopped buying.
Now nobody expects him to buy anymore. Now the question obviously is what does this mean for micro strategy shareholders because this is by any metric, very slight dilution to sell shares to raise cash. But right now, Michael Sailor has ceased to be the main character in the market, which in my humble opinion is very, very good news. As I continue to say, over the coming weeks, I do not think that we will be talking much about Sailor and the greatest cure for all these problems is if the Bitcoin bull market commences. If Bitcoin's trading at 70, 75, 80, 85, $100,000, STRC will likely float to par, strategy stock will go up, all of their obligations will effectively go down and we won't be talking about this anymore. So let's hope that that will be the case. Now,
the next story is an interesting one because I think it's been largely missed. I'll just show you what it says right here. US regulators missed GENIUS Act's one-year deadline for final stable coin rules. So obviously, the only thing people have been talking about on Capitol Hill when it comes to crypto is the CLARITY Act. Now this is the GENIUS act that passed a year ago. And for those who were paying attention, there was a one-year deadline in the GENIUS Act that said that the regulators and agencies had to come together and offer the rules. So we didn't get that.
Nobody actually submitted anything. We still have all of the rules out to lunch and we have no idea what they actually are. This is an extremely bad situation for stable coin issuers who still don't have the clarity that was supposed to come with the GENIUS act on what they can and cannot do. So the GENIUS Act got a first birthday cake, but apparently the rules are still baking in the oven. But so what happens? Treasury, OCC, Federal Reserve, FDIC, NCU NCUA, none of them
have given their final regulations for implementation of the GENIUS Act. Now, for a lot of companies it probably doesn't matter. I'd imagine that right now Circle has the clarity that they want, but you remember that the largest stable coin issue in the world, which is Tether and their token, USDT, they're still waiting for these rules to figure out how they can operate compliantly in the United States. Now they had Bo Hein come in as the head of Tether in the United States, who used to be at the White House, and they've discussed even launching a compliant stable coin in the United States, but right now they are still in a massive legislative and regulatory gray zone and a lot of questions as to how they will proceed. Obviously, for others looking to launch stable coins, for open USD, the other one that we've seen floated, nobody really knowing what this is going to mean. So
there's an interesting nuance here with the clarity act coming to the finish line, a finish line that I think it's going to drunkenly stumble on its fat face before it even gets there. But let's say that it does cross the finish line. We know that GENIUS actually had some unintended negative consequences for the banks because of the way that it allowed stable coin yield by second parties. So the issuers like Tether and Circle are not allowed to offer or pass on the yield. But Coinbase, the exchange right now can. Jamie Diamond has been going absolutely buck wild about this saying that the banks will fight it. They actually needed the clarity act to close some loopholes in the GENIUS Act.
So, imagine how confusing this is now for everybody. We have the GENIUS act, but we don't have the clear rules from the GENIUS Act and we now have the CLARITY Act and confusion as to whether that will close loopholes from the GENIUS Act or what will happen moving forward. It is a predictable and massive mess on Capitol Hill and we're just going to continue to talk about it and cover it with time and see where it all shakes out. Now this next story to me is just huge, right? We have Morgan Stanley's e-trade rolls out crypto trading, Wall Street's push into digital assets continues. So listen, while we talk about markets and what Sailor does and trying to figure out what's happening with legislation and regulation, the pipes are being laid by the biggest platforms on planet Earth to allow everyone access to crypto assets. So, we talked about the fact that this would be happening in the past. So we knew that this was coming, but it now has been launched. I have an e-trade account. I got the, I got the little alert that said you can now buy and sell Bitcoin, Ethereum and Solana on the platform.
This is through a partnership with zero hash and I believe it'll be 50 bips fees on these trades. So 0.5% on all of these trades. So what does this mean? So listen, Morgan Stanley was largely out of the crypto space for a very, very long time and I think made a splash a few months ago when they announced that they were launching a Bitcoin spot ETF because generally they are not an ETF issuer, but as I've told you on this show before, what Morgan Stanley was interested in was keeping the walls closed and not having capital flight out of their accounts. So why would they want to send their customers to buy a BlackRock spot ETF and pass that money on to BlackRock if they can do it themselves. They have tens of thousands of advisors and sales people out on the streets who even if they didn't capture retail interest, they would be able to get the Morgan Stanley customers to stay within Morgan Stanley, buy that ETF, collect the fees and not pass them on. But interestingly, you'll remember that they came in with extremely low fees undercutting the entire market, meaning that they also wanted to compete for retail if the market ever ramped up again massively, which I think everybody in crypto believes it will do.
Well, now they're following through with more plans here, relatively low fees for trading and making sure that those Morgan Stanley customers don't exit and send their money over to Coinbase because we know that that money never comes back. So yes, it's only Bitcoin, Ethereum and Solana, but we can assume that this is the beginning of a much broader trend of companies like this, we've seen it with Schwab that formerly did not offer crypto to their customers, wholesale offering crypto to their customers. Now, interestingly, you cannot deposit and withdraw from the platform. So this is a very small ecosystem where you're going to keep your assets, you know, they will be in a separate account, not FDIC insured from the securities that are in these accounts. So there are a lot of things here still to work through as to how it's going to actually work. But really, really big news. I think that the entire world now, if they didn't have access before, they are getting access through all the accounts and platforms that they're familiar with to be able to trade our beloved crypto assets. So the next story that we have here, let me pull this up.
Crypto.com announces $400 million strategic investment from Citadel Securities. I mean, this is wild. This is crypto.com's first institutional funding round ever and it's coming 10 years after they've existed. Now this we've, you know, we've got the crypto.com arena, we've got crypto.com all over F1. But I think a lot of people, uh, still, you know, looking at these platforms, choosing exchanges and wondering which one to go to. Well, this is probably a big point for crypto.com. So what does this mean? Citadel Securities obviously has multiple branches. This is not the hedge fund side. This is the much bigger market making and security clearance side and this is a massive, massive investment that values now crypto.com at $20 billion. So Citadel has done investments like this before. I believe they invested in some of Kraken's infrastructure, but this is going this money is going to allow expansion for crypto.com into tokenized securities, derivatives, prediction markets and other traditional asset classes. But of course, more importantly, it gives them access to everybody
that Citadel Securities has access to. Once again, this is, you know, Ken Griffin, this is the largest market making firm on planet Earth and really plugs them into the legacy system. So I don't know that this is a story as much about crypto.com individually. I think it's more a story about the institutionalization of the asset class and the different way that institutions are looking to participate. You don't see Citadel talking about buying an a liquid token. You're seeing them invest in the actual infrastructure that's likely to benefit into the future and to build out that infrastructure in a way that they can later be profitable, right? I mean, we saw obviously the New York Stock Exchange parent Ice investing in OKX. We've seen a number of stories like this where the biggest exchanges and platforms on the planet are coming in wholesale to crypto to participate. So I I would say that this is something we're going to see a whole lot of in the future, uh, and that this is just the beginning of these stories. So now, you know, we love to do a great segment on this show. You guys have heard us do it before and it is called how not to invest. Let's hit it.
How not to invest. How not to invest.
So this how not to invest is once again about our good friend Donald Trump. Okay, so here's the story in case you missed it. Trump media to sell instant access to market moving social posts. I'm old enough to remember when inside trading was illegal or certainly if you were going to inside trade that you certainly were not going to charge the world for that inside information very publicly uh and having articles written about it all over the world. So I would say how not to invest if you're wondering why that, this is probably how to invest if you are a large institution and if you are trying to make money in milliseconds on Trump tweets, the how not to invest is the part where retail once again will get rinsed because they will attempt to trade on tweets when the institutions and insiders already have all of the information and have already front run them. So what does this mean? So what they're offering here effectively by reports is a $100,000 a month subscription for large institutions that do high frequency trading for them to be able to get early access, reportedly only milliseconds to Trump's true social post. Now we've seen that Trump's true social posts have moved markets repeatedly in the past. And now that we have access to his disclosures, we can see that he was also actively trading on those. So why not sell that access to his friends and make a massive profit? If he knows that he's going to say Nvidia is a great American company in a Truth social post, he can front run it by buying and now he's giving high frequency traders who spend hundreds of millions of dollars to have the fastest information, the fastest internet, who pay for this kind of access, they'll be able to trade on it in milliseconds before those messages hit and before we get access. Now,
proponents for this or supporters will say, hey, people buy a $32,000 Bloomberg terminal and that gives them the fastest access in the world to news and that's the reason that they pay for it and he's just offering that exact same thing. But this is entirely different. This is a much more reflective of the Trump grift that we've seen in crypto and of course, is going to be one more massive story that leans into Democrats not wanting to support anything Trump related when it comes to markets, which could include the clarity act because, of course, of the ethics clause. So listen, if you think you're going to massively profit from Trump tweets, you can just know that you are going to be front run and you're going to be buying into the people ahead of you who got the information, who have the massive capital and who are selling into your information. So listen, the crypto market continues to do what the crypto market does. You know that I kind of believed that we really started to form a bottom in February, nothing about that has really changed in my humble opinion. What has changed is that we have governments, institutions, all really starting to get their feet wet and participate massively in this industry. I think that that will continue into the not so distant future. I'll be back from the conference tomorrow with some great interviews. That's it for the Daily Wolf today. Peace.