Is Ethereum finally taking the driver's seat from Bitcoin? 📉➡️📈
The $ETH / $BTC ratio just surged to a 3-month high of 0.030, driven by a massive +16% monthly performance spread in favor of Ethereum (+24% vs. +8%).
The latest KuCoin blog breaks down the fundamental forces behind the momentum shift:
📊 Reclaiming the 200-Day SMA: The cross-rate has officially reclaimed its 200-day Simple Moving Average for the first time since January, signaling a technical trend reversal.
🌊 ETF Flow Flippening: U.S. Spot Ethereum ETFs recorded $103.9M in weekly net inflows—outpacing Spot Bitcoin ETF inflows by a factor of 3-to-1.
🔒 The Supply Vortex: Public treasury accumulation (Bitmine holding ~4.8% of circulating supply), a zero validator exit queue, and 2.5M ETH waiting in the staking entry queue have squeezed spot liquidity.
⚙️ "Glamsterdam" Horizon: Institutional RWA dominance exceeds $17B on Ethereum, with the H2 2026 "Glamsterdam" upgrade set to introduce parallel processing and slash L1 fees by over 70%.
Is this just a short-term liquidity rebound or the start of a full-scale market rotation? Read the full technical breakdown here:
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💡 This past Thursday, the DSA continued its four-part educational series with students at
@SAES High School, with Professor Charles CY Wang, from
@HarvardHBS, returning to lead the third session.
Following the group's earlier discussion of
@coinbase, this case study turned to
@WellsFargo, examining accountability in traditional banking, the fragility of consumer trust, and what happens to a franchise when that trust is broken.
Students worked through how incentives, culture, and governance shape institutional behavior, and why credibility is one of the hardest assets for a financial institution to rebuild.
One session left in the series! We're excited for the finale and grateful to Professor Wang and the St. Andrew's community for such thoughtful engagement. 📚
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Watch the full recording of our Q2 2026 earnings call.
Prepared Remarks
00:00:00 - Welcome
00:01:20 - 843,775 BTC, 203,683 sats per share, $17B raised year to date, and Strategy’s position as the largest institutional holder of Bitcoin
00:03:27 - Q2 balance sheet: $49.7B of digital assets, $3.75B current USD reserve, lower debt, higher preferred equity, and strong stress-case coverage
00:08:57 - Bitcoin KPIs: 4.5% BTC Yield, 29,997 BTC Gain, and ~3.6x growth in Bitcoin per share since 2020
00:12:47 - Q2 execution: higher Bitcoin holdings, lower debt, larger USD reserves, stronger Bitcoin per share, and active capital management
00:15:03 - Strategy as a net buyer of Bitcoin and net issuer of Digital Credit: 48x more BTC bought than sold and 300x more Digital Credit issued than repurchased
00:18:47 - Returning $STRC to $99–$100 through USD reserves, Bitcoin monetization, repurchases, dividend management, and disciplined issuance
00:24:50 - Bitcoin liquidity: why Strategy’s bitcoin purchases and sales are not material to overall Bitcoin trading volume
00:33:03 - Bitcoin as Digital Capital: website metrics, the 200-week moving average, current headwinds, Bitcoin Dominance, banking adoption, and security coordination
00:44:08 - $STRC as flagship Digital Credit: liquidity, lower volatility, market depth, yield, investor base, path to par, and updated credit metrics
01:05:04 - Equity framework: hurdle rate, breakeven rate, floor rate, market skepticism, $MSTR outperformance, franchise advantages, and Strategy’s long-term ambition
Q&A
01:19:31 - Why Bitcoin-backed borrowing is not currently the preferred path to build USD reserves
01:23:11 - Why Strategy is consolidating around $STRC instead of creating more instruments or selling volatility
01:40:37 - Equitizing, repaying, or refinancing convertible debt
01:43:18 - Covered calls, cash-secured puts, Digital Credit, Bitcoin as money, and marketing products to the 99% outside Bitcoin
01:59:22 - USD reserve minimums and the path to $STRC trading at par
02:00:55 - Amplification, USD/BTC reserve mix, and countercyclical capital management
02:12:04 - Why Strategy does not intend to issue $STRC below par
02:20:34 - Lessons from 2022 and 2026, tokenized securities, Digital Money, and the June 26 dislocation
02:34:54 - Closing remarks
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Over the past few months, the questions we’ve heard from institutional clients have increasingly focused on collateral efficiency, cross-asset risk, liquidity, and how tokenized equities can fit into existing portfolio strategies.
So our institutional team has put our thinking into this rToken playbook for cross-asset capital management.
For institutions exploring how crypto and tokenized equities can work together within one capital framework, this is for you 👇
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