愚木混株 cdd20/Unsplash modified by Blockworks
More companies are hoarding bitcoin for their treasuries — a tactic made famous by Michael Saylor-led MicroStrategy.
Industry watchers predict that these moves will become more common as BTC gains momentum in an environment of elevated inflation.
DeFi Technologies is the latest company to announce such a move. It now uses Monday BTC as its currency. “primary treasury reserve asset.” The company purchased 110 bitcoins and noted that the asset is “a reasonable hedge against inflation and a safe haven from monetary debasement.”
Stock prices for the company rose by roughly 13% Monday, before falling about 7% Tuesday. The stock price was up by 46% over the past five business days, and 180% for the year as of yesterday.
Metaplanet wanted to be a new company “Asia’s first MicroStrategy” Jason Fang, a board member of the company, said this in an X posting in April. The Japanese investment firm put 1 billion JPY (about $6.6 million) into bitcoin — its “strategic treasury reserve asset” — and revealed Tuesday it bought 23.3 more BTC.
Semler Scientific, a medical technology company, purchased BTC worth $40 million in May. Semler Scientific bought 247 BTC last week for an additional $17 million.
Metaplanet’s and Semler Scientific’s shares were up by 197% and 74% respectively from the close of Tuesday.
These firms may be looking to mimic MicroStrategy or use a gimmick in order to boost their stock price, but the macro landscape has changed the way they make decisions.
MSTR’s Success, A Changing Landscape
MicroStrategy has been a huge success for companies in recent years. Industry watchers say they’re not just copying MicroStrategy.
Saylor’s company, a business intelligence firm, began storing bitcoin in 2020. Its pile grew to 214,400 BTC as of April 26 — worth $14.3 billion on Tuesday morning.
Tesla bought $1.5 billion worth of Bitcoin in 2021 “more flexibility to further diversify and maximize returns on our cash,” In a SEC document, it was stated. As of March 31, the company’s balance sheet showed digital assets worth $184 million.
MicroStrategy’s stock has risen 118% this year and more than 1,000% over the past five years.
You can also find out more about this by clicking here. “wildly successful” Sam Callahan is an analyst at Swan Bitcoin research. He noted that proof of concept had shown other investors it could be a prudent method to return value to their shareholders.
There are also the new FASB Accounting Rules, which allow corporations to include bitcoins on their balance sheet.
“I expect this strategy to become popular as inflation continues to erode the purchasing power of cash and cash-like equivalents, leading corporations to seek alternatives,” Callahan stated.
David Tawil, president of ProChain Capital, said that some shareholders might prefer dividends or a buyback to companies buying BTC. The potential share price increase from BTC purchases can also be attractive.
“I wouldn’t knock anyone or not take a company seriously saying we need to hold something other than US dollars in treasury,” He explained. “I would have respect for that type of forethought, especially since bitcoin is a tried and true commodity or store of value at this point and has gained worldwide acceptance.”
Tawil said he didn’t believe firms like Semler and DeFi Technologies were necessarily seeking to be a “MicroStrategy junior” — noting there likely isn’t room in the market for that.
He thinks that BTC is used by companies to increase their valuation or [to attract] Shareholders that find their stock appealing.
The early adopters may have had less to lose. The question is: When? “serious” player jumps aboard — touting that BTC is a good treasury investment and diversifier — “we’re off to the races,” Tawil Blockworks.
Bitcoin ETF adoption is creating a BTC price surge, and pension fund managers are interested.
“You couple it with corporate adoption of this as a treasury asset… the upside-downside skew on the price of bitcoin is ridiculous,” He added. “You’d have to be an idiot to bet against bitcoin at that point.”
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
