Bitcoin treasury adoption by public companies is leading to a new trend in cryptocurrency investment, according to Adam Back, the co-founder and CEO of Blockstream. He stated that this 'Bitcoin treasury season' might be viewed as the new altcoin season for traders looking to make profitable moves in the market. Back pointed out that companies are increasingly acquiring Bitcoin to enhance their share value, using various methods like convertible note offerings.
The corporate interest in Bitcoin is evident, with the count of public companies holding the asset doubling from 124 to at least 240 since early June, now accounting for approximately 3.96% of the total Bitcoin supply. Back predicts that this growing adoption could present Bitcoin as a $200 trillion market opportunity as firms position themselves ahead of a concept known as hyperbitcoinization, where Bitcoin could potentially replace fiat as the dominant currency.
Despite the bullish outlook, Back also highlighted concerns for shareholders of companies heavily involved in Bitcoin investment. For example, stockholders in the Japanese investment firm Metaplanet recently faced a staggering premium of $596,154 for Bitcoin exposure through their shares.
Yet, Back sees Bitcoin-oriented companies as a potential refuge for investors struggling with altcoins. He suggested that those invested in altcoins consider transitioning to Bitcoin through these firms to recoup their losses. Recent examples of corporate Bitcoin treasuries include Mercurity Fintech Holding, raising $800 million for its own treasury, and The Blockchain Group, which aims to establish a $340 million treasury, further emphasizing the institutional interest in digital currencies. This trend also extends to altcoins, with companies like Interactive Strength planning a treasury for Fetch.ai tokens, showing the broader institutional adoption.
The corporate interest in Bitcoin is evident, with the count of public companies holding the asset doubling from 124 to at least 240 since early June, now accounting for approximately 3.96% of the total Bitcoin supply. Back predicts that this growing adoption could present Bitcoin as a $200 trillion market opportunity as firms position themselves ahead of a concept known as hyperbitcoinization, where Bitcoin could potentially replace fiat as the dominant currency.
Despite the bullish outlook, Back also highlighted concerns for shareholders of companies heavily involved in Bitcoin investment. For example, stockholders in the Japanese investment firm Metaplanet recently faced a staggering premium of $596,154 for Bitcoin exposure through their shares.
Yet, Back sees Bitcoin-oriented companies as a potential refuge for investors struggling with altcoins. He suggested that those invested in altcoins consider transitioning to Bitcoin through these firms to recoup their losses. Recent examples of corporate Bitcoin treasuries include Mercurity Fintech Holding, raising $800 million for its own treasury, and The Blockchain Group, which aims to establish a $340 million treasury, further emphasizing the institutional interest in digital currencies. This trend also extends to altcoins, with companies like Interactive Strength planning a treasury for Fetch.ai tokens, showing the broader institutional adoption.
