MicroStrategy Bitcoin Acquisition Strategy: A Game Changer for 2025?
Analysts at market-making firm Wintermute predict that the trend of corporates adding Bitcoin to their balance sheets will continue till 2025.
I think that is now going to be quite a big driver next year when you get the corporates coming in on top of the institutions, and their own institutional base of listed companies that are trying to get exposure. You’re likely to see the SMEs (small and medium-sized enterprises) come in as well.
Wintermute OTC trader Jake Ostrovskis
How Does MicroStrategy’s Bitcoin Acquisition Strategy Impact Other Companies?
In recent years, MicroStrategy has invested $10 billion in Bitcoin and intends to use its stock to purchase an additional $42 billion. As examples of organizations that are imitating MicroStrategy by issuing convertible notes to purchase additional bitcoin, Ostrovskis cited Riot and Mara, two bitcoin mining companies. In order to speed up bitcoin purchases, Metaplanet also said earlier this week that it will issue bonds totaling $31.8 million. These actions are based on the fundamental premise that they can increase a company’s stock price and balance sheet. Refer to it as the MicroStrategy approach.
People at the moment are talking about the impact of ETFs and the real driver of that is that you can now have like pension funds and sovereign wealth funds putting cash in. But actually there’s this whole other pool of capital in corporates, which is arguably a little bit freer and probably faster moving than waiting for pension funds to come and buy Bitcoin ETFs.
Ostrovskis
According to Ostrovskis, some companies will use Ether in place of MicroStrategy.
It’s probably only a matter of time until someone does the equivalent and turns themselves into like an Ethereum investment vehicle. At that point, you turn into the MicroStrategy of that world.
Ostrovskis
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