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The creation of reserves in Bitcoin is promoted by Michael Saylor and American politics
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Currently, only 0.01% of publicly traded companies hold bitcoin.
During the almost-ended month of November, a total of 10 companies announced the creation of their own strategic reserves of bitcoin (BTC). Mostly influenced by US politics, as well as the example set by MicroStrategy. A trend that seems to be torn between being authentic or rather a passing fad.
The companies that announced the creation of their reserves in bitcoin are largely American, although there are cases of companies based in Asia, where fixing BTC as a treasury asset It seems to start to set. Furthermore, they are entities dedicated to different areas, and not only technology.
Rumble, LQR House, Remixpoint, Genius Group, Cosmos Health, Jiva Technologies, Hoth Therapeutics, Thumzup Media Corp, Acurx Pharmaceuticals and SOS are the companies that decided join the trend of bitcoin strategic reserves this monthopenly announcing their moves to diversify their treasuries.
Rumble, for example, is a streaming platform and is YouTube competitor. LQR House is dedicated to electronic commerce in the alcoholic beverages sector. Genius Group focuses on artificial intelligence. Hoth Therapeutics is dedicated to developing biopharmaceutical treatments and Thumzup Media Corp focuses on social media marketing.
Among the objectives that these companies share to create their strategic bitcoin reserves is to strengthen their financial management, diversify their treasuries and obtain profitability. Goals that MicroStrategy has been able to achieve, which recently saw its actions set new all-time highs thanks to his investment in bitcoin, as reported by CriptoNoticias.
A strategy in the incubator
The trend of bitcoin strategic reserves has been maturing for some time. First it was Michael Saylor, who, in 2020, through MicroStrategy, implemented a clear treasury strategy: aggressively buy bitcoin and thus create a reserve in this digital asset, which is nothing less than the most important in the world.
Over the years and after a demonstration of success in MicroStrategy’s BTC-based treasury strategy, which currently accumulates almost 400,000 BTCthe conversation about a strategic bitcoin reserve rose to the political strata.
Initially, with El Salvador announcing, in 2021, its own treasury in bitcoin and marking a milestone in the history of the digital economy, led by the government of Nayib Bukele.
Now, days before 2024 ends, the issue of bitcoin reserves is at its peak. This responds, in addition to the effect of Michael Saylor and MicroStrategy, to the direct influence of American politics.
Donald Trump, president-elect of that country, promised in his campaign create a strategic bitcoin reserve. This would have, first of all, the more than 200,000 BTC that that country already has in custodywhich mostly come from confiscations.
This reserve policy is also supported by the weight of US senators, more precisely Cynthia Lummis, who in July presented a bill so that the US has its own strategic BTC treasury, of at least 1 million coins.
Trump promised during Bitcoin 2024 to create a strategic reserve of BTC if he won the election. Source: Investopedia.
Authentic strategy or fad?
Now, is the trend of bitcoin strategic reserves a true corporate treasury strategy or is it a passing fad among companies that only seek to take advantage of the rise of the digital currency and the enthusiasm for Trump’s return to office? can?
One might think that, like a fad, companies, in a drive to make profits and see profitability in the short term, buy several million dollars in bitcoin during a bullish period and, in case the price of the currency falls (as it usually pass in bear markets), exit your holdings and, with any luck, take profits or recover what was invested.
But everything seems to indicate that this trend is far from being a passing fad, and rather is beginning to emerge as a real, authentic one, that will last over time and become increasingly common.
This is because currently only players with weight in the market are participating in this strategyand it is estimated that this trend will begin to be extrapolated to smaller companies.
The research firm OKG Research indicates that, currently, just 0.01% of all companies listed on the stock exchange have bitcoin. According to that firm, “this is the sole purchasing power of large institutions.”
That analysis company maintains that, “at the tip of the iceberg, the market is still in the ‘elite experimental stage,’” and that, so far, only large institutions lead BTC holdings.
Among these institutions, MicroStrategy logically stands out, as it is the publicly traded entity that has the most BTC holdings. According to the BitcoinTreasuries dataMichael Saylor’s company holds 386,700 BTC, a fortune valued at 37 billion dollars.
MicroStrategy is the publicly traded company that holds the most bitcoin. Source: BitcoinTreasuries.
But this trend is beginning to manifest itself in other companies, as can be seen in the dozen companies that this month alone announced the creation of their own reserves in BTC.
As María Fernanda Juppet, CEO of the Chilean exchange CryptoMKT, sees it, the incorporation of a bitcoin reserve in companies and countries is a significant step towards consolidation of bitcoin as a global financial tool.
“This phenomenon not only validates bitcoin as a safeguard asset against inflation and volatility, but also reinforces confidence in its ability to preserve long-term value,” Juppet told CriptoNoticias.
Strategic reserves will boost bitcoin price
According to OKG Research, based on conservative estimates, around $2.28 trillion will enter the bitcoin market next year, which will positively impact its price and take it to $200,000, “in line with forecasts from financial institutions Bernstein, BCA Research and Standard Chartered,” says the company, which validates the projections of those financial firms.
This billion-dollar entry into the bitcoin market could be driven, in part, for the creation of strategic BTC reserves. But not only by companies and entities. The reserves of States and entire nations will be included, which will also begin to accumulate bitcoin as a treasury asset.
Dennis Porter, American politician and bitcoiner, assures that a bitcoin strategic reserve movement It already started in that country. And, as CriptoNoticias reported, the states of Florida and Pennsylvania They showed clear interest in creating their own bitcoin treasuries. All to protect against inflation and guarantee long-term value.
It is precisely the creation of strategic reserves, both at the corporate and national level, that could catapult the price of BTC up to USD 500,000 next year, as estimated by the CEO of the Galaxy Digital firm, Mike Novogratz.
He believes that if the United States finally creates its strategic BTC reserve as Trump promised, it will force all other countries Follow that trend and start building your bitcoin treasuriespotentially raising the price of the digital asset due to the principle of supply and demand.
The price of BTC is approaching $100,000, and everything points to $200,000 next year. Source: TradingView.
Thus, the strategic reserve of bitcoin in companies, entities and governments is no longer just a plan, and has become an ongoing project. increasingly present among companies of all types who want to protect themselves from the fiat system debacle.
As Juppet, from CryptoMKT, sees it, this trend is already beginning to be felt in Latin America, where there are already companies “exploring innovative strategies to manage their assets and protect themselves from the economic fluctuations typical of the region.”
“The diversification of reserves in bitcoin can act as a shield against the depreciation of local currencies and high inflation rates, frequent in our region. From a strategic perspective, holding reserves in bitcoin allows companies to participate in a globalized digital economy, with immediate access to a liquid and decentralized asset,” Juppet said.
With 2025 already looming, it remains to be seen how strategic BTC reserves are being built in the different strata of the economy and society. It will then be seen how bitcoin will finally fully enter the so-called “real world”, where he will dwell for posterity.
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