Disclosure: The author of this story owns shares in Strategy (MSTR).

When executive chairman Michael Saylor confirmed on Strategy’s (MSTR) Q1 2026 earnings call on May 6 that the company was prepared to sell bitcoin, it appeared to mark a shift for the world’s largest publicly traded corporate holder of the cryptocurrency. But the move would not be unprecedented. In December 2022, Strategy sold bitcoin for tax-loss harvesting purposes — the same rationale the company now appears to be signaling to the market once again.

On Dec. 22, 2022, Strategy sold 704 bitcoin for approximately $11.8 million at $16,776 per coin, but immediately repurchased 810 bitcoin two days later.
The sale was designed to carry back capital losses against previous gains and generate a tax benefit. A tax loss harvesting event.

“MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carrybacks are available under the federal income tax laws currently in effect, which may generate a tax benefit”.

Bitcoin fell 23% in Q1 2026, from $87,500 to $67,700. Under FASB fair value accounting rules adopted Jan 1, 2025, Strategy marks its entire bitcoin holdings to market every quarter, in Q1 posted a $12.54 billion loss which pushed unrealized losses directly through the income statement and generating a $2.2 billion deferred tax asset across its higher cost basis holdings.

According to the MSTR earnings call, assuming an $80,000 bitcoin price, Strategy has purchased over 434,000 BTC above $80,000 generating a $7.6 billion unrealized loss and a $2.2 billion deferred tax asset at a 29% tax rate.

If bitcoin recovers and Strategy sells appreciated bitcoins, that $2.2 billion tax can offsets future gains.

The primary goal for the company is to increase “bitcoin per share” which is the ratio of Strategy’s total bitcoin holdings divided by its total diluted shares outstanding.

The use of proceeds from the bitcoin sale is to retire the $8.2 billion in convertible debt, purchase MSTR common stock when the multiple to net asset value falls below 1.22x or fund $1.5 billion in annual dividend obligations from its perpetual preferred stock Stretch (STRC).

MSTR is up 1% in pre-market trading, while bitcoin trades above $81,000.

• The Osmosis crypto price has surged on extreme trading volume and liquidity inflows.
• Cosmos governance rejection kept Osmosis independent and stable.
• Price now hinges on holding $0.065 and breaking $1 resistance.

The price of the Osmosis (OSMO) crypto has jumped sharply by nearly 200% in 24 hours, moving from a low near $0.03383 to around $1.

This sudden rally has placed the token among the strongest performers in the crypto market today, with trading activity and ecosystem developments both playing a major role in the move.

Notably, the price surge came alongside an extreme spike in trading activity, a shift in altcoin market flows, and a key governance outcome within the Cosmos ecosystem that removed uncertainty around Osmosis’s future structure.

Forces behind the Osmosis crypto price surge

One of the biggest drivers behind the sudden Osmosis crypto price surge is the dramatic rise in trading activity on the Osmosis decentralised exchange.

On-chain data shows a surge in 24-hour trading volume of more than 7,000%, reaching roughly $173.892 million, according to Coingecko data, at press time.

This level of activity is unusually high compared to the token’s typical liquidity profile and signals a sudden inflow of speculative capital.

This spike suggests that traders were actively rotating funds into Osmosis liquidity pools, likely driven by momentum strategies and short-term positioning.

When volume expands this rapidly relative to available liquidity, even moderate buying pressure can produce outsized price movements, which helps explain the sharp upward acceleration.

Another important factor is the broader market environment.

The Altcoin Season Index has risen to around 51, reflecting a mild shift in capital from major assets like Bitcoin into higher-risk altcoins.

In such an environment, mid-cap tokens tied to active ecosystems tend to experience amplified moves, and Osmosis has clearly benefited from this rotation.

The rally was also reinforced by a governance vote within the Cosmos ecosystem.

On April 17, 2026, a proposal to integrate Osmosis more directly into the Cosmos Hub narrowly failed.

While some market participants initially viewed integration as a potential long-term structural upgrade, the failure of the proposal removed uncertainty around Osmosis’s independence.

Following the vote, the Osmosis team confirmed that the network would continue operating independently, maintaining its current structure and focusing on profitability and user security.

The Cosmos Hub proposal to integrate Osmosis narrowly did not pass governance.

While this is not the outcome we thought was best for Cosmos, we want to thank the community, validators, and everyone who engaged deeply with the discussion.

Osmosis continues to operate as an…

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— Osmosis 🧪 (@osmosis) April 17, 2026

This clarity appears to have reduced governance-related uncertainty and contributed to improved short-term sentiment.

At the same time, market conditions were already supportive.

The token was trading in a highly reactive range, and once momentum began building, price action accelerated quickly.

The combination of rising volume, altcoin inflows, and narrative confirmation created the conditions for a sharp upward breakout.

OSMO price outlook

From a technical perspective, the move in OSMO has the characteristics of a momentum-driven expansion phase.

The price nearly doubled in a single day, which is typically associated with speculative trading rather than gradual accumulation.

Eyes are not on the support near $0.065, which is an important level for the altcoin to maintain the bullish momentum.

If the token holds above $0.065, it could indicate consolidation after the initial spike.

A break above $1 and sustained trading above this level would suggest continuation of momentum, especially if trading volume remains elevated.

However, volume will play a decisive role in the next phase.

The same surge that pushed the Osmosis crypto upward could also reverse quickly if activity begins to fade.

A drop in trading volume below roughly $100 million would signal weakening participation and could increase the likelihood of a pullback.

If selling pressure increases, a breakdown below $0.055 would be an important bearish trigger.

Such a move would likely indicate that short-term traders are exiting positions after the sharp rally, potentially leading to a deeper retracement toward lower liquidity zones.

The cryptocurrency industry often appears mysterious to newcomers. Many assume blockchain protocols simply “print money” whenever prices rise or new tokens are launched. In reality, sustainable crypto projects operate much more like businesses than people realize. Behind every decentralized exchange, lending protocol, or blockchain network is a system designed to generate revenue, manage expenses, and incentivize growth.

Understanding how crypto projects make money is essential for evaluating whether a protocol has long-term potential or is simply surviving on hype.

The Difference Between Revenue and Token Price

One of the biggest misconceptions in crypto is the belief that a rising token price automatically means a project is successful.

In traditional business, a company’s value is often linked to its revenue and profitability. In crypto, however, token prices can rise purely because of speculation, trends, or market sentiment.

A protocol may have:

• A rapidly increasing token price, but very little real revenue
• Strong revenue generation while its token remains undervalued
• Massive user activity with weak treasury management
• Sustainable cash flow despite bearish market conditions

This distinction matters because long-term survival depends more on actual economic activity than temporary token speculation.

A healthy crypto project usually combines:

1. Real protocol usage
2. Sustainable revenue streams
3. Effective treasury management
4. Incentives aligned with long-term growth

Trading Fees: The Core Revenue Engine

For many crypto protocols, trading fees are the primary source of income.

This model is especially common among decentralized exchanges (DEXs) such as:

• Uniswap
• PancakeSwap
• Hyperliquid

Every time users swap tokens, open leveraged positions, or provide liquidity, the protocol collects a percentage-based fee.

For example:

• A DEX may charge 0.3% per trade
• Perpetual futures platforms collect trading and funding fees
• Lending protocols charge interest spreads between borrowers and lenders

When millions or even billions of dollars move through these systems daily, small fees can add up to substantial revenue.

This is similar to how traditional financial exchanges operate. The difference is that blockchain activity is transparent, allowing users to publicly track protocol revenue.

Treasury Management: The Protocol’s Financial Backbone

Most serious crypto projects maintain a treasury, which functions similarly to a corporate reserve fund.

Treasuries may contain:

• Native tokens
• Stablecoins
• Bitcoin
• Ethereum
• Yield-generating assets
• Venture investments

Effective treasury management is critical because crypto markets are highly volatile. A project holding only its own token may struggle during bear markets if the token loses significant value.

Well-managed treasuries help projects:

• Fund development
• Pay contributors
• Support ecosystem grants
• Maintain liquidity
• Survive prolonged downturns

Some protocols also generate income by deploying treasury assets into staking systems or decentralized finance strategies.

Projects with strong treasury discipline are generally viewed as more resilient during market cycles.

Staking: Incentives and Network Security

Staking is another major economic mechanism in crypto.

In Proof-of-Stake ecosystems, users lock tokens to help secure the network and validate transactions. In return, they receive rewards.

Popular staking ecosystems include:

Staking serves multiple purposes:

• Secures the blockchain
• Encourages long-term holding
• Reduces circulating supply
• Aligns users with network growth

However, staking rewards are often misunderstood.

Many beginners see high APY percentages and assume guaranteed profits. In reality:

• Rewards may come from token inflation
• Token prices can fall faster than rewards accumulate
• Unsustainable yields often collapse during weak market conditions

The most sustainable staking systems are backed by real network usage and fee generation rather than excessive token emissions.

Token Models: Utility vs Speculation

A token model, or tokenomics structure, determines how a project distributes value across its ecosystem.

Crypto projects use tokens for different reasons:

• Governance voting
• Transaction fees
• Staking access
• Liquidity incentives
• Revenue sharing
• Ecosystem participation

Strong token models attempt to balance:

• User incentives
• Network growth
• Supply control
• Long-term sustainability

Weak token models often rely heavily on inflation. In these cases, new tokens are constantly issued to attract users, but demand eventually weakens.

This creates a cycle where:

1. Rewards attract liquidity
2. Token supply expands rapidly
3. Selling pressure increases
4. Token prices decline
5. User participation falls

This pattern has caused many short-lived DeFi projects to disappear after initial hype faded.

Revenue-Sharing Models

Some crypto projects distribute protocol revenue directly to token holders or stakers.

This approach is becoming increasingly popular because it creates clearer economic alignment between users and the protocol itself.

Revenue-sharing can include:

• Buyback-and-burn mechanisms
• Staking rewards funded by fees
• Dividend-like distributions
• Fee rebates for active users

Projects pursuing this model aim to connect actual protocol usage with token demand.

However, regulations surrounding revenue-sharing tokens continue to evolve globally, making compliance an ongoing challenge for many teams.

Why Some Projects Fail Despite Huge Hype

Crypto history is filled with projects that reached multi-billion-dollar valuations without sustainable revenue.

Common failure patterns include:

• Excessive token inflation
• Unsustainable staking rewards
• Poor treasury management
• Weak product-market fit
• Dependency on constant user growth
• Speculative demand without utility

When market sentiment weakens, projects without real economic foundations often struggle to maintain activity.

This is why experienced investors increasingly analyze:

• Protocol fees
• Treasury size
• Active users
• Revenue consistency
• Token supply dynamics

rather than relying solely on price charts.

The Future of Crypto Business Models

The industry is gradually shifting from speculation-driven growth toward sustainable financial infrastructure.

Modern crypto projects are increasingly focused on:

• Real revenue generation
• Long-term treasury stability
• Product utility
• Institutional adoption
• Transparent on-chain economics

As the market matures, projects with strong fundamentals are more likely to survive beyond short-term hype cycles.

In many ways, crypto protocols are evolving into digitally native financial businesses — powered by blockchain technology but governed by the same economic realities that affect every industry.

Final Thoughts

Crypto projects do not generate value magically. Behind every successful protocol is an economic system designed to attract users, generate activity, and sustain operations over time.

Trading fees, staking systems, treasury management, and carefully designed token models all play a role in determining whether a project can survive market cycles and continue growing.

For beginners entering the space, understanding these mechanics is one of the most important steps toward separating sustainable innovation from temporary speculation.

Digital Asset Holdings, the company behind the Canton Network blockchain used by several major banks and trading firms, is seeking $300 million from investors including Andreessen Horowitz’s a16z crypto at a roughly $2 billion valuation, according to Bloomberg.

The funding round is expected to close in the next few weeks, and the amount raised could vary, people familiar with the matter told Bloomberg.

The sources said investment banking company FT Partners is consulting Digital Asset on the funding round.

Digital Asset Holding, Canton Network and a16z crypto did not respond to a CoinDesk request for comment and confirmation.

The Canton Network is a privacy-enabled blockchain infrastructure whose purpose is to connect financial institutions and their tokenized assets across interoperable, permissioned applications.

In February, it revealed that a group of global financial firms completed the first cross-border, intraday repurchase agreement using tokenized British government bonds on its blockchain. The transaction was the first time digital versions of gilts, a $2 trillion market, had been used in an intraday repo across borders.

Digital Asset received backing estimated at about $50 million in late 2025 from investors, including Bank of New York Mellon and Nasdaq. Existing backers also include DRW and Citadel Securities.

For Andreessen Horowitz, participation in this fundraising round could be its first since raising $2.2 billion a week ago for its latest crypto fund, taking its total capital dedicated to the sector to just shy of $10 billion across five funds.

Macro investor and former hedge fund manager Jordi Visser said he recently bought Ether as he sees the “tokenization reality” starting this year, with tokenized assets powering agentic AI payments.

“I don’t think enough people are talking about tokenization and what’s happening,” Visser told Anthony Pompliano on a podcast on Saturday, predicting that tokenization and AI will be intertwined. 

AI agents cannot access banking services or credit, so their primary method of transacting online autonomously will be digital assets such as Ether or stablecoins, which do not require bank accounts, logins or human approval.

“AI agents are with us,” he said. “They need food, and that food is not physical food. It is tokens,” he added. “There’s been a shortage,” which could lead to a supply and demand issue, he continued. 

Autonomous online payments have surged this year, recording more than $24 million in transaction volume over the past month on the Coinbase x402 standard, according to x402.org. 

Meanwhile, crypto protocols are racing to implement agentic AI payment protocols into their blockchains. The Algorand Foundation is one of the more recent, announcing on Saturday support for agentic commerce via a partnership with Google on the AP2 Agentic Payments Protocol. 

Tokenization is needed for price discovery

Ethereum is a major blockchain for real-world asset tokenization, commanding more than 60% market share of tokenized assets, including layer-2 networks, according to RWA.xyz.

He also connected tokenization to a broader need for price discovery in illiquid assets, arguing that tokenization isn’t just a crypto story but a structural necessity for unlocking capital trapped in dormant assets such as private credit, private equity and venture capital. 

Related: Agentic AI commerce may spell the end of internet ads: a16z Crypto

He argued that markets are entering a period where transparency and liquidity are “becoming critical” because a lot of money is stuck in these dormant assets.

“So tokenization is actually needed for no other reason than price discovery for a lot of these things that they’re trapped in.”

Source: YouTube

The head AI macro at 22V Research and a former hedge fund manager, however, cautioned about rising inflation, stating that he wanted to be in gold and silver and has also bought Bitcoin (BTC) as a hedge.

Magazine: Strategy reveals why they would sell BTC, Trump Media posts loss: Hodler’s Digest

Bitcoin (BTC) has climbed roughly 40% from its February lows, bringing the price back to a critical resistance zone that could determine whether the bear market continues or finally ends.

Key takeaways:

• Bitcoin fell 2.25% to around $80,500 after failing once again to break above its 200-day EMA resistance.
• Previous rejections from the same technical level triggered Bitcoin declines of 25% and 36%.

Bitcoin bulls must decisively break key trend line

As of Monday, BTC/USD was down 2.25% near $80,500, erasing its overnight gains as buyers once again failed to clear the 200-day exponential moving average (200-day EMA, blue line).

The level has capped Bitcoin’s rebound attempts since November 2025. Each rejection from the 200-day EMA has preceded steep drawdowns of 25% and 36%, respectively, putting the average decline near 30%.

BTC/USD daily chart. Source: TradingView

In his Monday post, analyst Brett said breaking above the 200-day EMA, currently near $82,580, could be “the end of the bears.” But given Bitcoin’s ongoing pullback, the prospects of BTC falling further in the coming sessions appear higher.

BTC’s price could fall toward $56,600 from current levels if it repeats its average 30% drawdown from the 200-day EMA rejection zone.

BTC price “lifetime support” model shows $56,000 floor

The $56,600 level aligns closely with Bitcoin’s broader macro support range.

A new Bitcoin Lifetime Support Model, highlighted by analyst PlanC, places BTC’s long-term upper support band near $57,110. The lower support was roughly around the $46,760 level.

Bitcoin lifetime support model. Source: Coin Metrics/PlanC

The model averages Bitcoin’s lifetime simple moving average with its single-, double-, triple- and quadruple-EMAs, then plots a 10% band around the result.

Historically, similar lifetime support zones have acted as macro bear-market floors. That means Bitcoin’s immediate setup remains bearish, but a decline toward the mid-$50,000s would still place BTC near a major long-term support area.

Bitcoin’s still unresolved bear flag pattern also hints at a potential drop below $60,000 in the coming weeks, as shown below.

BTC/USD daily chart. Source: TradingView

Bitcoin’s 2026 rebound mirrors past cycle bottoms

Despite the near-term bearish setup, Bitcoin’s latest rebound from the 200-week simple moving average (200-week SMA, blue line) is flashing a historically bullish signal.

BTC bounced by over 38% after testing the 200-week SMA near $61,000. This blue level closely aligns with major cycle bottoms seen in 2018 and during the March 2020 crash.

BTC/USD weekly chart. Source: TradingView

In both prior instances, Bitcoin briefly dipped toward or below the 200-week SMA before staging a sustained recovery toward the 50-week SMA (red).

Related: Analyst says Bitcoin’s $60K bottom signals weaken bear-market forecast

Bitcoin’s next upside target could be near $94,700, up roughly 17% from current price levels, if the fractal continues to play out. A move that high could support Brett’s view that the bear market is nearing its end.

The bullish outlook is also backed by strong fundamentals, including aggressive whale accumulation that recently absorbed nearly 500% of Bitcoin’s newly issued supply.