28th December 2024 > > NFK 1 of 9, & treasury reserves.

tl;dr

The first of the nine NFKs. Corporate adoption of BTC goes from strength to strength.

Market Snap

Market Wrap

Another day of heavy outflows from the spot BTC ETFs results in a net loss of $1.5bn over the last six thin trading days Jerome Powell’s ultimately flawed attempt to damage the crypto markets during Biden’s last days is proving temporarily successful.

Occasional Series – Project K: Heads Up. NFK 1 of 9

https://www.curiouscryptos.com/projectk

Curious Cryptos’ meme corner

Curious Cryptos’ Commentary – Corporate crypto adoption

I know we have revisited this topic a few times of late, but for good reason. I had previously made the assumption that corporations adding BTC to the balance sheet would be a slow burner. The preferred option for these entities over the last few decades has been mostly cash, some short to medium-term treasuries, and a few sub one-year corporate bonds, possibly extending out to three years for the more aggressive, or better well-heeled companies.

As we saw just the other day (https://www.curiouscryptos.com/post/23rd-december-2024-corporate-adoption), Corporate Treasurers globally are setting out to prove me wrong on that assumption of mine. Which, frankly, is very much OK by me. I won’t take it personally.

I read today that KULR Technology added nearly 220 BTC to its balance sheet and, rather pleasingly, has announced its intention to follow the lead of Genius Group and put 90% of its reserves into BTC. I say the same to the visionary directors of KULR that I said to their compatriots at Genius – that is a number I have respect for. It is becoming increasingly difficult to keep up with the companies that are making these announcements on an almost daily basis.

But let’s add some even more exciting news into the mix.

Bitwise, issuer of a spot BTC ETF with $2.2bn of fiat inflows now worth a handsome $3.9bn rewarding investors a welcome 77% return in under one year, is launching a product that I would want to buy, if only the UK regulator worked in the best interests of UK investors, rather than the exact opposite.

Bitwise has filed for an ETF to be known as the Bitwise Bitcoin Standard Corporations ETF. The name doesn’t trip off the tongue, I get that. This ETF will invest in those companies that pass certain tests:

- A market cap of $100mm or more.

- At least 1,000 BTC on the balance sheet.

- And some other share liquidity related restrictions which need not concern us here.

The weighting within the fund will be based on the number of BTC held by each company, not on the overall market cap of that company. I am reliably informed that this is a first, and it is an intriguing prospect.

If you do subscribe to a belief in the crypto revolution, and you believe that my ridiculous $1.2mm per BTC price prediction has some legs, however short they may be, this is – or would be unless you are a UK investor – a potentially lucrative means of leveraging your BTC investments with no risk of liquidation, allied with the possibility of using tax-free wrappers.

Corporate adoption of BTC as a treasury asset appears to be increasingly trapped in a virtuous circle.

And that sounds good to me.