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Bitcoin Company Steadiness Sheet Watch Month-to-month Replace: February

03/07/2021

All through February, companies introduced large bitcoin buys in a sequence of more and more bullish speculative assaults on the greenback.

What began out as a gradual trickle of institutional funding pouring into the bitcoin market is growing into a gentle stream that can, in time, flip into an all out flood. Let the sport concept begin!

Previous to 2020, institutional and company curiosity in bitcoin was slightly inconsequential. Although it began as a grassroots phenomenon, led principally by “retail” for the primary 11 years of its historical past, the rubicon was positively crossed for bitcoin in 2020 with the COVID-19 pandemic and subsequent financial recession led to file ranges of financial growth globally. Because of this, institutional and company curiosity in bitcoin as a financial asset has exploded. Whereas buyers like Paul Tudor Jones, Stanley Druckenmiller and others have come out as bullish on bitcoin, publicly-traded firms which have turned to BTC would be the focus of this text.

The First Domino: The Saylor Impact

On August 11, 2020, Michael Saylor, CEO of MicroStrategy, fired a shot heard throughout the Bitcoin business and the legacy monetary system. He introduced that his firm had shifted its treasury reserve technique to a Bitcoin commonplace (you will discover the unique press launch right here).

“We simply had the terrible realization that we had been sitting on prime of a $500 million ice dice that’s melting. This isn’t a hypothesis, neither is it a hedge” stated Saylor. “This was a deliberate company technique to undertake a bitcoin commonplace.”

Following the transfer in August, Saylor spent the next months seemingly taking on almost each interview and podcast invite that was thrown his technique to describe his firm’s choice. In January 2021, Saylor introduced that MicroStrategy was conducting a web-based seminar open for all to attend, “Bitcoin for Firms,” throughout which his workforce open-sourced its thesis and playbook in order that different companies may observe in its footsteps.

The end result: An explosion within the worth and curiosity in bitcoin as a treasury reserve asset. Bitcoin opened 2021 at a worth of $29,150, and, on the time of this writing, it’s buying and selling at $47,900.

Listed below are the opposite institutional bitcoin adoption highlights from February:

February 8: Tesla, Inc. (TSLA) Purchases $1.5 Billion Of BTC (Official BTC Quantity Stays Undisclosed).

“In January 2021, we up to date our funding coverage to offer us with extra flexibility to additional diversify and maximize returns on our money that isn’t required to take care of sufficient working liquidity. As a part of the coverage, we could make investments a portion of such money in sure specified different reserve property. Thereafter, we invested an mixture $1.50 billion in bitcoin underneath this coverage.”

-Tesla’s Type 10-Ok Submitting

This transfer by Tesla and CEO Elon Musk was large for the acceptance of bitcoin as a hedge in opposition to fiat debasement, and not directly gave each S&P 500 investor partial bitcoin publicity — a mark within the sand for bitcoin in public markets with an endorsement by the world’s largest automaker by market cap, led by (on the time) the world’s richest man.

February 19: MicroStrategy Completes $1.05 Billion Providing Of Convertible Notes At 0 % Curiosity, With Plans To Purchase Extra BTC As Per The Firm’s Treasury Reserve Coverage.

Saylor continued to indicate his playing cards to the remainder of the world by executing one other speculative assault on the greenback at 0 p.c curiosity.

February 23: Sq. (SQ) Purchases 3,318 BTC For $170 Million Of Bitcoin, Placing Its Stack At A Whole Of 8,027 BTC.

Outspoken Bitcoin proponent and Sq. CEO Jack Dorsey doubled down on his BTC wager, upping Sq.’s stake to about 5 p.c of its liquid money.

February 24: MicroStrategy Purchases 19,452 BTC For $1.026 Billion In Money At An Common Worth Of $52,765 Per BTC.

For an up to date file of Bitcoin on company stability sheets, go to https://bitcointreasuries.org.