Bitcoin as a treasury reserve asset
The last few weeks have seen an accelerated adoption of Bitcoin as a corporate treasury reserve asset.
This is remarkable but not surprising. More and more companies are waking up to the fact that Bitcoin is likely to be a better store of value than many alternatives and that the last few regulatory hurdles to its adoption will be removed later this year.
Since then:
- Microstrategy (MSTR) has continued to pursue its extraordinary Bitcoin adoption strategy, increasing its market cap more than 5x as a result, bringing it close to adoption to the S&P500.
- Block (SQ), a $40Bn market cap company announced in its latest earnings call that it will invest a percentage of gross earnings from certain products in Bitcoin going forward.
- Tesla (TSLA) continues to hold over $800M in Bitcoin with additional Bitcoin held by Elon Musk’s other venture SpaceX.
- Semler Scientific (SMLR) has been the most recent NASDAQ listed company to adopt a Bitcoin standard. The stock is up more than 100% since the announcement
- Metaplanet, a Japan listed company, acquired 118 Bitcoin in April. Its stock is up more than 300% since
- DeFi Technologies, a Canada listed company, is the latest company to follow, announcing an acquisition of 110 Bitcoin. Its stock climbed 23% in one day.
It is remarkable that these are companies of various sizes and geographies. Bitcoin is a global phenomenon and so is the issue of government debt.
However, the truly extraordinary part of this evolving story is how positively the market has reacted in each case, often immediately on the day of the announcement. Some will call this pure speculation. Others see in this a speculative attack on Fiat money, with each new participant being instantly rewarded.
The more frequently this playbook is repeated successfully, the more CFOs will take note. And there will still only ever be 21 Million Bitcoin.
