<SOLV/Micro Strategy Clearing>10th issue made by Pepper Sichuan Pepper strategy Solv Tl‘dr 1. The micro strategy is not promoting value but volatility, and its strength lies in its financing ability. In the previous cycle, it was self owned funds+bond issuance, and in this cycle, it is convertible bonds+ATM selling stocks 2. Micro strategy 3: 3=Low leverage ->Low premium, borrow to buy BTC ->Increase leverage ->Market implied BTC position premium greater than 100% ->ATM secondary market sell ->Stock price drop 📉 -> Premium decline ->leverage 📉 (Premium arbitrage issuance game) 3. Solv Chain Doll Micro Strategy=Institutional BRO Convertible Bond Investment in Solv BTC ->Lock BTC to Obtain Future Solv Tokens ->BTC Price Rise ->Solv Bitcoin Reserve Yield Increase ->SOLV Pledge Yield Increase ->SOLV Token Price Rise ->Attracting More Funds into Bitcoin Reserves and Benefitting Solv (Retail Perspective Below) 4. The core of micro strategy is financing ability, and Solv's core ability is wealth management on behalf of clients (acting as a pimp to bring in BTC from institutions) 🌟 Project Introduction and Core Comparison MicroStrategy MicroStrategy is a publicly traded company founded in 1989 in the United States, initially known for its enterprise analytics software business. Michael Saylor, who was originally a near bankrupt accountant, jumped to become the new godfather of BTC because he led the company to shift its treasury assets to Bitcoin, transforming it into the world's largest corporate Bitcoin holder As of March 19, 2025, MicroStrategy holds approximately 499226 bitcoins, with a total value of approximately $41.3 billion based on the current bitcoin price (approximately $83000 per coin), and its market capitalization reaches $77 billion Bitcoin accumulation method: By issuing convertible bonds (such as zero interest or low interest bonds) and ATM (over-the-counter) stock sales, centralized purchase of Bitcoin is achieved to complete the original basic accumulation Revenue generation: He mainly earns the premium premium between BTC and stocks Financing methods: In the early stages, convertible bonds and self owned funds were used, followed by ATM sales of stocks. For example, in March 2025, preferred stock sales were used to raise funds Risk management: This set of flywheel has no risk, we'll talk about it later Institutional participation: Institutional participation is aimed at "leveraging" the BTC premium, which is known as arbitrage trading There are several misconceptions here Why do institutions buy micro strategies instead of directly buying BTC ETFs Not all laws are pushed so quickly, aren't there many state governments in the United States that do not approve BTC national doping? South Korean pension funds can only take a detour to buy BTC by first buying micro strategies. The legal framework limits the standards for investment targets, and often it takes a long time to push a bill to pass. That's why buying strategies is temporarily better than buying BTC ETFs, because currently you have no choice (please stick to any micro strategies for Hong Kong stocks). Thank you Why is micro strategy the best BTC leverage? Why should you buy Micro Strategy if you can buy IBIT? This is because of price leverage. If you want to pursue returns, you need to find the right leverage. There is no need for margin calls or liquidation in micro strategies. Additionally, if you say you want to invest in options, you should check the depth of the options pool. All stocks related to IBIT combined are not as traded as micro strategies. The higher the volatility, the more significant the wealth effect, and similarly, the higher the volatility, the higher the option value 🌟 Solv Protocol Solv Protocol aims to unlock the liquidity and revenue potential of Bitcoin through its core product SolvBTC. Users can lock their Bitcoin on the platform, obtain Solv tokens, and earn profits through staking or providing liquidity As of January 2025, Solv Protocol's Bitcoin reserves exceeded 25000, attracting over 597000 users to participate -Bitcoin Accumulation Method: Through Bitcoin Reserve Products (BRO) -Revenue generation: Generate active revenue through staking (such as SolvBTC. Babylon's PoS staking) and DeFi activities, rather than relying solely on price appreciation -Financing method: Issuing Solv tokens and attracting institutional investment through BRO, with users locking their Bitcoin positions in exchange for replacement coins. -Institutional Participation: Introducing Large Funds from Institutions into the Bitcoin Ecosystem -Retail dividend: The profits from Bitcoin reserves are distributed to SOLV stakers, allowing retail investors to benefit from this BRO institutional mutual aid platform Explain several misconceptions Where exactly is the source of income? All users/institutions' BTC needs to go through SAL (Pledge Standardization Process), which means that by pledging BTC SolBTC and integrating it into multiple DeFi protocols to earn profits, such as Babylon, coreDAO, Etherna, etc., the yield of native BTC can be absorbed by multiple dividend split disks. Solve does this much better than Babylon How long can chain nesting dolls last? Friends who are familiar with Defi know that there are two pools in Defi. Similarly, Babylon sees Defi as one pool, while Solve can be seen as a platform that provides single coin staking mining. His business pressure is only on how to find more TO B cooperation, and the To c part is actually not very important (of course, it is also important) This type of chain nesting doll is different from traditional protocol nesting dolls in that it has a larger operational range and is less likely to die. From the perspective of selling stocks, its hook is stable BTC appreciation+an additional 10-15% of other profits, which is very popular. Finding mines (projects) is much simpler than finding users 🌟 MicroStrategy's flywheel mechanism Micro strategy 3: 3=Low leverage ->Low premium, borrow to buy BTC ->Increase leverage ->Market implied BTC position premium greater than 100% ->ATM secondary market sell ->Stock price drop 📉 -> Premium decline ->leverage 📉 (Premium arbitrage issuance game) 1. Low leverage start: The initial debt to equity ratio is approximately 0.39 2. Debt financing to purchase Bitcoin: issuing convertible bonds or low interest debt to raise funds to purchase Bitcoin and increase leverage 3. Market premium manifestation: Stock prices have risen due to an increase in Bitcoin holdings, with market capitalization ($77 billion) far exceeding Bitcoin's value ($41.3 billion), resulting in an implicit premium formation 4. ATM stock sales: raising more funds by selling stocks at high prices through over-the-counter trading. 5. Stock price adjustment: Stock sales increase circulation, leading to a price decline and a reduction in premium. If it is less than 100%, then it is possible to buy at the bottom 6. Leverage adjustment: After the premium is reduced, the company adjusts its debt level to prepare for the next round of financing 7. Loop repetition: Use new funds to purchase more Bitcoin, driving further growth in holdings and stock prices. This flywheel relies on the long-term upward trend of Bitcoin prices and market recognition of MicroStrategy as a "Bitcoin agent," but if Bitcoin prices fall or premiums disappear, it may lead to debt pressure. However, the recent debt is 28 years old, so there have been no issues in recent years 🌟 Solv's flywheel mechanism Solv Chain Doll Micro Strategy=Institutional BRO Convertible Bond Investment in Solv BTC ->Lock BTC to Get Future Solv Tokens ->BTC Price Rise ->Solv Bitcoin Reserve Returns Increase ->SOLV Pledge Returns Increase ->SOLV Token Price Rise ->Attract More Funds into Bitcoin Reserves, Also Beneficial for Solv 1. Institutional investment in BRO: Institutions invest in Bitcoin through Bitcoin Reserve Products (BRO) 2. Bitcoin Price Rise: As the value of Bitcoin increases, the total reserve value also increases 3. Revenue Enhancement: Reserves can generate higher returns through staking (such as SolvBTC. Babylon) or DeFi activities, benefiting Solv token holders 4. Attract more funds: Higher returns attract more institutions and individuals to lock up Bitcoin and expand reserve scale 5. Continuous cycle: Reserve growth further enhances returns and token value, forming a positive feedback effect 🌟 Optimal Strategy Analysis retail investor MicroStrategy： Purchasing MSTR stocks can provide leverage exposure for the appreciation of Bitcoin prices, while also enjoying potential returns from market premiums. However, be careful as if the hidden premium rate exceeds 200%, you may need to reduce your holdings Solv Protocol： Pledge, suitable for P young players who can't control it anymore. If you can't control it, lock it up and let others manage it for you. You can also enjoy premium and defi income institutional investor MicroStrategy： Suitable for institutions with low risk appetite and high compliance requirements, buying is better than missing out Solv Protocol： Investing in Bitcoin reserves through BRO, exchanging some SolvBTC to earn some DeFi returns, and even if the first tier fund loses money, it's easy to make up for it through the BTC ecosystem MicroStrategy and Solv Protocol represent two completely different paths for Bitcoin investment, one is the premium arbitrage market and the other is the mutual dividend market, both of which revolve around the core asset BTC. In theory, the scarcity of BTC will become increasingly expensive year by year, and the market is neither good nor bad, only looking at the long-term