Bitcoin treasury adoption by public companies has been the new altcoin season for cryptocurrency speculators, Adam Back said. Back, co-founder and CEO of blockchain tech firm Blockstream, is the inventor of Hashcash. His premise is that firms focused on Bitcoin specifically can make up the losses incurred from holding altcoins. This strategy has piqued the interest of investors and analysts alike, as firms weigh different options for how to amass Bitcoin.
On May 27, Metaplanet’s Bitcoin premium hit an unbelievable $596,154. This new all time high indicates that Metaplanet stockholders are now paying more than five times as much premium for Bitcoin exposure via Metaplanet shares. This increase is an indicator of the rising demand for Bitcoin treasury strategies.
These moves came after a number of companies, including MicroStrategy, announced recently big plans to set up or increase their Bitcoin reserves. On June 12, Mercurity Fintech Holding announced offerings of $800 million to build a “long-term” Bitcoin treasury reserve. Three days ago, Paris-based cryptocurrency company The Blockchain Group surprised us all with a thrilling announcement. Their official plan is to raise $340 million to build a corporate Bitcoin treasury.
These Bitcoin treasury companies are or have used different funding mechanisms, including convertible note offerings, to raise additional Bitcoin. According to Adam Back, Bitcoin treasury firms are buying BTC "on repeat to increase Bitcoin per share," making them attractive for investors. Genius Group’s $BTC treasury increases by 52% as our goal of 1,000 BTC confirmed.
"Time to dump ALTs into BTC or BTC treasuries" - Adam Back
Recently, Back has been on a mission to convince skeptical investors to go from looking at altcoins back to Bitcoin.
"I was encouraging them to find a way out of alts" - Adam Back
Further, he proposes Bitcoin treasury firms as a way for investors to recoup losses they sustained from altcoins.
"Maybe they can make back their losses by switching to BTC by way of treasury companies" - Adam Back
BitcoinTreasuries.net hopes to see a day when Bitcoin is the world’s largest global reserve currency. It should not substitute for fiat money on account of its crypto inflationary economics. Additionally, a Swedish MP has proposed a Bitcoin reserve to the finance minister, further indicating growing mainstream recognition of Bitcoin's potential.
"is the new ALT SZN for speculators" - Adam Back
