“If you take a step back, there have been two distinct Bitcoin bubbles thus far, mostly led by money laundering and retail enthusiasm. While both drivers are still alive and well, the coming Bitcoin super-bubble will be led by institutional demand—only these super-whales have the sort of buying power to move an asset class worth roughly $200 billion.”
The author highlights a recent move by a $1bn market cap to allocate a significant portion of its treasury assets to Bitcoin:
“…last Tuesday, August 11th. MicroStrategy (MSTR – USA) announced that they had purchased 21,454 Bitcoins for a total purchase price of $250 million dollars. The headline says all you need to know “MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset.””
The author quotes from the company’s press release:
“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash… MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.
…Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program—risks that should be addressed proactively…We believe that, together, these and other factors may well have a significant depreciating effect on the long-term real value of fiat currencies and many other conventional asset types, including many of the assets traditionally held as part of corporate treasury operations.
…MicroStrategy believes digital transformation has quickened amid rapidly shifting market requirements. These dynamics have many corporations rethinking their offerings, operations, and systems, as well as their balance sheets and financial strategies.”