In the past three months, a major trend worth noting is that large companies have converted most of their holdings into Bitcoin. In August of this year, the software intelligence company MicroStrategy announced that it had purchased 0.1% of the total Bitcoin supply. The payment giant Square, which has been providing bitcoin transactions to users of its mobile payment platform, also spent $50 million in its assets to buy bitcoin in early October this year. On October 22, British financial technology company Mode also took out 10% of its cash reserves to purchase Bitcoin as its assets.
To compile this trend into a simple and easy to understand database, Coinkite’s Rodolfo Novak, also known as NVK, created bitcointreasuries.org. The website lists those companies that have transformed to hold Bitcoin as an asset, as well as their market value, the comparison of the base price of the investment with the current value, the number of Bitcoins they hold, and the Bitcoin acquired by each company Percentage of total currency. According to statistics, the share listed on the website is as high as 3.74% of all future bitcoins.
Novak explained to Bitcoin Magazine: “I have always hoped that there is such a place, which can be incomplete, but needs to show a list of big Bitcoin players other than individuals.” “Especially listed companies, because all their accounts are public. And they are all audited. But I didn’t find anything, but I like to buy domain names, so I set up bitcointreasures.org, hoping that it can create more FOMO sentiment for other companies.”
Source: Partial list of website data
This form mainly includes companies that focus on blockchain. These companies have invested in BTC some time ago and regarded it as part of a larger business mission. For example, the gradation Trust (Grayscale Trust), the highest ratio of credits held by the bit, 2.17% of the total supply.
However, many of the BTC acquisitions or filings listed on the website occurred this year . Novak explained that although on the surface it seems that many companies have adopted Plan B at the same time, it is very likely that these recent acquisitions have been planned for a long time, and this is also the currency party’s understanding of assets.
Novak said: “Corporate governance is often slow, especially those listed companies.” “So there must be some ready-made mechanisms, like a template, which can be used to guide. And this will take several years, because Bitcoin has Ups and downs. If you haven’t entered this field for 10 years, it’s hard to understand that Bitcoin will rise again after falling.”
However, the reasons for the company’s shift to focus on Bitcoin assets should be clear, especially in recent months.
Novak said: ” Once you have a store of value, everything will serve the store of value. ” “Also, the reason for holding a store of value is because you still want to be able to get out of trouble 30 years later… It’s like,’Hey, my bank There is cash in it, but the result will be terrible, I need to find a solution.’ And the golden pet stone is not the solution to the problem.”
What does this mean for Bitcoin?
Because the supply of Bitcoin is limited (only slightly less than 21 million Bitcoins will be released and enter circulation), if any entity grabs a large amount of Bitcoin, it will affect everyone else who wants to Someone who gets a portion of Bitcoin. Moreover, since the main value proposition of Bitcoin is such scarcity, the purchase of these companies will also affect the price of Bitcoin relative to legal tender.
As a Bitcoiner, Novak is optimistic about this trend.
“Bitcoin is good for everything, right?” he asked. “Bitcoin’s scarcity comes from people’s purchases, and it has a supply cap. So, the more these big companies buy, the price of Bitcoin in other people’s hands will rise.”
He also pointed out that as more and more types of entities begin to hold Bitcoin, the entire network will also benefit more.
“You would want your enemies and your competitors to hold Bitcoin.” He said, “Because the more people with different preferences and different incentives, the safer the entire network… If Kim Jong-un holds Bitcoin Bitcoin, the United States, and China also hold Bitcoin, so Bitcoin will serve everyone’s interests, right?” Because if one person wants a change that is good for him, then others will also want it. Therefore, this is a good incentive mechanism. “
Some retail investors may see this trend as a warning, but Novak pointed out that although the number of users of the bitcointreasuries.org website is increasing, there is still a great opportunity to buy Bitcoin assets ahead of most companies.
He said: “Retail investors still have a chance to be ahead of Berkshire Hathaway (an American insurance company),” “You can even spend $10 a week for DCA or whatever, and you can buy it before they buy it. People shouldn’t waste this. Second chance, because at the moment, if you don’t buy Bitcoin, it’s a crime.”
When asked about the trend of BTC allocation by companies, Novak believes that bitcointreasuries.org will cease to exist within ten years, because “every listed company will have financial asset management, not just dollars, but they will also be exposed to some bitcoin.”
This seems to be an inevitable Bitcoinization problem, but in the short term, it may help some organizations already on this list announce their approach to Bitcoin. For example, Square released a white paper detailing its investment. Novak found that other interested organizations will also follow this in Plan B.
He explained: “The cases of these large companies have created a template for some other listed companies in the United States to follow.” “As long as the template is followed, the company can purchase bitcoin through transfers.”
The bull market in the near future may also prompt more companies to follow Square’s approach. But its ultimate driving force is Bitcoin after all. Companies that are already ranked on bitcointreasury.org have already done so, and if necessary, they can opt out of the traditional financial system. And other companies also want to join this ranks.
Novak explained: “These companies now have the BTC tool and can transfer it away at any time.” “If the United States fails, they can directly transfer these BTC assets without any approval.”