Increase in BTC Company Holding
The CEO of Microstrategy was one of the few entrepreneurs who saw the potential in BTC as a store of value as its company’s shares skyrocketed following the coin’s surge past $100K. Now, other advocates are following suit and advising companies to reconsider this coin as it can help them prepare for the future.
The CEO of Strive Asset Management, Matt Cole, sees BTC as a growing opportunity for any business. He recently advised GameStop, the beloved meme-stonk of 2020, to invest in this digital coin. The reason for that is he believes Bitcoin will become a standard asset for major corporations.
Not only that, but he sees Bitcoin as a better performer in the market compared to other types of investments. In the next decade, Bitcoin has the potential to become a new norm as adoption is set to increase. With that, as he stated, “zombie companies,” who are less likely to perform in the current climate, can prepare for the future by investing in Bitcoin and beating the crowds.
In a recent letter to GameStop, Cole stated: “We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier Bitcoin treasury company in the gaming sector.” Even though his stake in GameStop is unknown, his approach might be unorthodox but can be seen as innovative.
A Broader Trend with BTC
GameStop isn’t alone in being urged to adopt this digital currency. In the past 4-5 years, data has shown that over 80 publicly traded companies, including Tesla and Reddit, have added BTC to their balance sheets. Most notable is Tesla’s early 2021 adoption, which helped kickstart the 2021 bull run.
Public institutions are also joining the trend. For example, 20 U.S. states, including Texas and Massachusetts, are pushing initiatives to create Bitcoin reserves. On a global level, Bhutan has introduced BTC mining, El Salvador made Bitcoin legal tender, and President Trump recently discussed plans for a U.S. strategic crypto reserve.
The Argument for Acting Quickly
Even with growing interest in BTC and other digital coin assets, some investors are cautious about acting too quickly. While Cole and other industry advocates emphasize timing as a key decision factor to take advantage of the moment, others see adoption as taking time. Timing isn’t as important as getting in at the right time.
Dan Ives, Global Head of Technology Research at Wedbush Securities, believes “every public company will have to strongly consider going down that path” and acknowledges that digital assets are transforming payments and the financial sector.
The Next Era of Financial Strategy
The push for BTC in corporate balance sheets represents a paradigm shift in how businesses manage their resources. It’s a gamble that could redefine financial strategies in the years to come.
If activist investors like Cole succeed, BTC could move from being a niche investment to a central player in the world of corporate finance. For now, all eyes are on companies like GameStop to sethey’lley’ll take the plunge.
NFT Gaming Specialist
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Vlad has been active in the crypto space since early 2013 with a hands-on approach since late 2017. His focus has always been being able to showcase the value crypto brings to our digital landscape. That’s why he tried almost every possible category from mining to NFT and ICOs – back in the day. In short, he enjoys every part of the blockchain space, from the community to the nitty gritty technological details.
