Exclusive: Tether whale Heka thinks MicroStrategy is expensive
In 2023, Protos interviewed Fabio Frontini, the fund manager of Malta-based Heka Funds. Heka is one of the biggest Tether whales, and with its Elysium Global Arbitrage Fund, it arbitrages tether (USDT) by buying and selling around its intended $1 peg. Protos recently interviewed Frontini again, this time about the latest developments in crypto, including the effect of MicroStrategy’s (MSTR) historic acquisition spree of 447,470 bitcoins (BTC) – 2.2% of the world’s circulating supply. We began by asking Frontini whether he thinks MicroStrategy poses a structural risk to the BTC market. “That is a very good question!” he said. “We are trying to dig into MicroStrategy to understand if an arbitrage is possible given the MSTR shares look particularly expensive compared to the value of the underlying BTC but at the moment it is not a clear-cut trade.” He added, “Generally speaking, their position is very significant indeed. However, in the past,...