Gemini Tokenizes Saylor’s Strategy Stock — A New Gateway for Bitcoin Investors?

Crypto exchange Gemini has rolled out a tokenized version of Michael Saylor’s Strategy (MSTR) stock for European Union investors, marking a new way for crypto users to gain exposure to Bitcoin.

Key Takeaways:

• Gemini has launched tokenized Strategy stock for EU investors.
• The service promises 24/7 trading, lower fees, and easier access compared to traditional stock markets.
• Platforms like Robinhood, Kraken, and Coinbase are also moving to offer tokenized US equities.

The launch was announced on Friday, with Gemini touting tokenized stocks as a solution to the limitations of traditional equity markets.

“Traditional financial rails are hard to access and in need of modernization,” Gemini said in its statement.

Tokenized Stocks Offer 24/7 Trading, Lower Fees for Global Investors

“Tokenized stocks solve this problem by giving investors greater access with fewer restrictions,” the company added, highlighting benefits like 24/7 trading and reduced fees for international investors.

The platform said its onchain trading system lets users hold both crypto and equities seamlessly without switching between different platforms.

Gemini is working with US securities provider Dinari to power the tokenization model.

The exchange said the service offers investors the same economic rights as the underlying shares where permitted, along with greater liquidity and transparency.

While MSTR is the first tokenized stock available on Gemini, the company plans to add more tokenized equities and ETFs in the coming days.

Shares of Strategy, a company known for amassing over 200,000 BTC on its balance sheet, have climbed 3.84% over the past month, trading at $383.88 according to Google Finance.

Gemini’s move comes as other crypto platforms race to bring tokenized US stocks to European investors.

Earlier in May, reports emerged that Robinhood is developing a blockchain network to enable European retail trading of US equities.

Kraken announced plans soon after to offer tokenized US stocks to non-US customers.

Meanwhile, Coinbase is exploring similar services in the US, with chief legal officer Paul Grewal confirming the exchange is seeking approval from the SEC to offer tokenized equities.

Industry figures like STOKR CEO Arnab Naskar see the sector’s potential as a “bigger trillion-dollar market,” underscoring the growing enthusiasm for bridging crypto and traditional finance through tokenization.

MSTR Has High Chance of Qualifying for S&P 500

Financial analyst Jeff Walton noted this week that MSTR has a high chance of qualifying for the S&P 500 if Bitcoin remains above $95,240 through the end of Q2.

Strategy has posted losses in the last three quarters, and with its massive Bitcoin holdings, currently 592,345 BTC, its earnings for Q2 heavily depend on the crypto asset’s fair market value.

Strategy adopted new accounting standards (ASU 2023-08) at the start of 2024, allowing unrealized gains and losses on its Bitcoin stash to be reflected in net income.

The change significantly impacts its financial statements and S&P 500 eligibility.

In May, Walton also said Strategy may one day rise to become the top publicly traded company in the world.

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