18th November 2024 > > BTC adoption where ever you look.

tl;dr

Pennsylvania goes all-in on BTC. The US will start buying by the second quarter of 2025. Two more companies announce that BTC will be added as a Treasury Reserve to the balance sheet.

Market Snap

Market Wrap

Meme coins are taking centre-stage. DOGE is heading back to all-time highs, SHIB is not far behind, PEPE has already got there, whilst BONK (a core part of any meme coin portfolio according to the CC Treasury investment team) has doubled in the last week. With a market cap of just 10% or so of the biggest meme coins, BONK might become the standout performer of this rally.

Curious Cryptos’ Commentary – Pennsylvania & the US

Lawmakers in Pennsylvania House recently passed “The Bitcoin Rights Bill” with almost unanimous and bi-partisan support with a 176-26 vote. I probably don’t need to tell you which party the naysayers hail from. This bill enshrines into law the right to self-custody, it enables BTC as a payment rail, and sets out guidelines for taxing crypto transactions. The Satoshi Action Fund played a key role in shaping this legislation which has now been passed by twenty different states.

But that’s not the end of Pennsylvania’s adoption of cryptos. A new bill has been introduced that would direct the state treasury to buy and hold BTC on its balance sheet as a reserve asset. Mike Cabell, Pennsylvania Representative explains the motivation:

"The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state’s financial future. By integrating Bitcoin into our reserves, we’re not only protecting Pennsylvania from inflation’s relentless impact but also positioning our state as a leader in financial resilience and innovation."

…

You will recall that Senator Cynthia Lummis introduced a bill that would establish a Strategic Bitcoin Reserve at the federal level to the tune of 5mm BTC over five years, to be held for at least twenty years:

https://www.congress.gov/bill/118th-congress/senate-bill/4912/text

That would be nearly 5% of all BTC that could ever exist. You know what will happen to the price when a big buyer turns up with a very clear plan of action.

Following the election results, Cynthia has made public her ambition that this bill is passed within the first 100 days of the new administration taking over, so by mid-April at the latest. With the guaranteed support of both houses, this bill is a given. The direction of travel has never been so clearly signposted. Exciting times, my friends, exciting times.

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Another thought occurs to me.

We know that the Trump government will spend even more dollars than any other government in history. The deficit will grow, and the debt pile will become ever more onerous. Annual interest payments on that debt pile are already greater than the amount spent on defence.

The Fed will be forced to restart QE to keep long end rates anchored lower than they would otherwise be, in order to try to manage the cost of those interest payments, and to recycle those interest payments back to the government. It is a twisted concept borrowing money from yourself to finance spending, but somehow that is the world we now live in. We know that this ramping up of money printing will not cause inflation in an open economy, though the caveat to that is the extent and size of the tariffs proposed by Trump.

Once individual States and the government itself own BTC, turning on the printing press and boosting the dollar value of all hard assets will actually lead to an improvement in the government’s finances, as the price of BTC rises.

By owning BTC, the government gives the Fed a get-out clause to print as many dollars as they want. That money printing press will be working very hard very soon.

Curious Cryptos’ Commentary – Genius Group & Thumzup

Genius Group, an A.I. focussed firm, has announced it is adopting BTC as its Primary Treasury Reserve asset:

https://ir.geniusgroup.net/news-events/press-releases/detail/156/genius-group-adopts-bitcoin-treasury-reserve-strategy

This is what the strategy looks like:

“1. To commit 90% or more of our current and future reserves to be held in Bitcoin

2. Commence utilizing our $150 million ATM1to acquire an initial target of $120 million in Bitcoin, to be held for the long term as its primary treasury reserve asset

3. Launch our Web3 Wealth Renaissance education series for students to accelerate their understanding of Bitcoin, Cryptocurrency and Blockchain with Genius Group’s AI-powered guides.

4. Enable Bitcoin payments globally on the Company’s Edtech platform.”

Thomas Power, Genius Group Director explains:

“We believe with our Bitcoin-first strategy, we will be among the first NYSE American listed companies to fully embrace Microstrategy’s (sic) Bitcoin strategy, for the benefit of our shareholders.”

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Thumzup Media Corporation has made a similar, though smaller, announcement:

https://www.globenewswire.com/news-release/2024/11/15/2981922/0/en/Thumzup-Board-of-Directors-Approves-Bitcoin-as-Treasury-Reserve-Asset.html

Robert Steele, CEO, tells it as it is:

“As demand for Bitcoin increases and it gains recognition as a leading asset class, we believe it will serve as a robust reserve asset for our treasury. With the newly sanctioned Bitcoin ETFs and growing backing from institutional investors, Bitcoin presents a strong addition to our treasury approach. Its finite supply and inflation-resistant qualities enhance its role as a reliable asset for preserving value."

The initial allocation will be just $1mm, but I suspect that won’t be the end of its investment into BTC.

…

The number of companies adding BTC to the balance sheet keeps on growing.

What was I saying about how clearly the direction of travel has been signposted for us?