23rd December 2024 > > Corporate adoption.

tl;dr

Not quite Dickens I am the first to admit, but a very festive Christmas tale nonetheless.

Market Snap

Market Wrap

A minorly irritating start to the week for BTC, whilst most alts are really struggling. Loads of techies are getting excited about this drop from the recent ATH at $108k, with some wild predictions of a precipitous fall to $70k. It is true that previous bull-markets have seen 30%-40% drawdowns before the run extends, but I just don’t see that as being of any relevance today. The spot BTC ETFs and growing institutional involvement will dampen such wild swings. I could be wrong of course.

Curious Cryptos’ Commentary – A heartwarming Christmas tale

This is a lovely Christmas tale that you will want to regale to your children and other family members on Christmas Eve, as the light from the roaring log fire flickers gently on their excited, upturned faces. Yes, we have a blockbuster story of crypto adoption that will warm the cockles of even the most cold-hearted anti-libertarians to ever walk this earth. You know we are looking at you, Senator Elizabeth Warren.

…

A remarkable development has been taking place just very recently. There has been a dramatically rapid increase in the number of corporations who are now adding BTC to their balance sheet. Let’s look at a rollcall of the great and the gilded. BTC holdings are valued at $100k per BTC for simplicity.

1. MicroStrategy (MSTR) is the Daddy of them all with a grand total of 439,002 as of 16th December 2024 valued at a whopping $43.9bn. Michael Saylor has no intention of stopping there. MSTR’s stash already accounts for over 2% of all BTC that will ever be in existence. If we exclude the 3.8mm BTC assumed to have been lost, that percentage climbs to 2.6%.

2. Marathon Digital Holdings (MARA) is a BTC mining firm that is adding debt-fuelled BTC purchases to its balance sheet to the tune of 44,394 BTC valued at $4.4bn, a minnow compared to MSTR, but a significant holding nonetheless.

3. Riot Platforms Inc. (RIOT), another mining firm, is keeping hold of 17.429 BTC worth $1.7bn.

4. Hut 8 Mining Corp (HUT 8), yep, another miner, holds 10,096 BTC as of three days ago, with a market value of $1bn.

5. CleanSpark, Inc. (CLSK) is – you guessed it – a BTC miner with 9,297 BTC which would clear at around $900mm.

So far, so good. Those companies alone account for 3% of the adjusted BTC supply and, to the best of my knowledge, all are of the intent to keep growing their stash. You won’t be surprised to hear that all five are significant holdings within the stock portion of the CC Treasury portfolio. Their potential to dominate any other stock returns over the next three years is a most exciting prospect.

To cheer ourselves up even more, to really put the festive spirit into things, we can look outside of this obviously BTC-centric group of companies to find others who are in disparate industries that are using either new debt to buy BTC, or are using existing treasury funds to pivot into BTC for their reserves. Ready?

Readers already know that Semler Scientific (SMLR) started buying BTC a little while back, now with a total of 2,084 BTC. SMLR is a wannabe mini-MSTR though it has not gone quite as leveraged as Michael’s baby. Metaplanet Inc. follows the same trail. Its share price has rocketed 2,283% in the last year. It is unfortunately not available to UK investors, as the UK regulator the FCA actively works against the interests of UK investors. It is no coincidence that the current incompetent governor of the Bank of England, Andrew Bailey, was head of the FCA during its very worst years, a time from which it can never recover. Metaplanet issued a bond on 17th December to buy 300 more BTC, and then came back to the markets just three days later to buy another 330 BTC or so, bringing its haul to nearly 1,800 coins. That storyline is far from ending.

On 20th November,2024, Solidion, Nano Labs., and Cosmos Health all announced that BTC would form part of their reserves. On 26th November, 2024, the board of Jiva Technologies approved an initial purchase of 10 BTC. Rumble – in whom Tether has just taken a minority stake – is getting involved with an initial purchase of 200 BTC. I am quietly confident that with Tether’s backing, Rumble has grander ambitions for its ownership of BTC. Genius Group announced that it owns 110 BTC on 18th November, 2024 and has adopted a policy of putting 90% of its Treasury reserves into BTC. That’s a number I have respect for.

I could go on, but I think the direction of travel is plain for all to see. BTC demand is simply growing by the day.

You can dig deeper here:

https://bitcointreasuries.net/