Bitcoin Conviction at All-Time High As Corporate Investments Rise

Corporate Bitcoin investors are showing conviction in the asset, as evidenced by the recent wave of BTC purchases. In the last week, MicroStrategy, the largest corporate Bitcoin investor, acquired 21,550 BTC for approximately $2.1 billion, bringing its total BTC holdings to 423,650.

From Dec. 5. to Dec. 6, Bitcoin mining company Mara Holdings acquired 1,423 BTC in four transactions. The latest purchases bring the company’s total BTC holdings to 22,108 BTC, approximately $2.2 billion at current BTC prices.

Healthcare firm Semler Scientific also recently purchased BTC. In its latest press release, the company announced that it had purchased an additional 303 billion, bringing its total BTC holdings to 1,873 BTC worth around $190 million.

The Japanese investment firm Metaplanet Inc. bought 108.8 BTC for 1 billion yen in October, bringing its total BTC holdings to 639.5 BTC, and Canadian fintech firm DeFi Technologies purchased an additional 94.4 BTC in July, taking its BTC holdings to 204.3 BTC.

More recently, Bitcoin mining companies Hut 8 and Riot Platforms have announced plans to raise $500 million through stock repurchase programs and senior convertible note sales for additional BTC purchases and general corporate purposes.

The Bitcoin Reserve Strategy Appeal

Interest in Bitcoin as a reserve asset has grown over the last few months, likely due to the change in perception of the asset. Many more companies have moved to purchase BTC in the last few months, but why?

One reason is long-term value. Bitcoin has the most potential among all assets, as it possesses a natural scarcity effect that ensures its value increases over time. With a $1.92 trillion market cap, it is also one of the fastest-growing assets in the world.

Another reason is the absence of risk. Bitcoin has no default risk, unlike bonds or stocks, which depend on future cash flow and whose value can be easily destroyed or diluted due to physical factors.

Since it is a digital asset, it doesn’t incur taxes either. A company holding BTC will not incur taxes on potential gains until it sells it. But, its price fluctuations will affect the business’s net income.

Michael Saylor’s recent presentation to Microsft shows that Bitcoin has outperformed all other assets, including gold, real estate, the Magnificent 7, and the S&P 500, over the last four years. MicroStrategy’s MSTR stock has grown by 3045% since adopting a bitcoin reserve strategy.

“We are very pleased to report BTC Yield of 78.7%," said Eric Semler, chairman of Semler Scientific.

"In addition, we have requested approval from the options exchanges to allow options trading in our stock as we believe we satisfy their eligibility requirements."