{"id":117063,"date":"2020-11-21T12:21:00","date_gmt":"2020-11-21T09:21:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/corporate-bitcoin-treasuries-are-here-which-can-only-mean-good-things\/"},"modified":"2020-11-21T12:21:00","modified_gmt":"2020-11-21T09:21:00","slug":"corporate-bitcoin-treasuries-are-here-which-can-only-mean-good-things","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/corporate-bitcoin-treasuries-are-here-which-can-only-mean-good-things\/","title":{"rendered":"# Corporate Bitcoin treasuries are here, which can only mean good things"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3be7e5120f4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3be7e5120f4\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/corporate-bitcoin-treasuries-are-here-which-can-only-mean-good-things\/#Crypto_as_a_treasury_holdings\" >Crypto as a treasury holdings<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Corporate Bitcoin treasuries are here, which can only mean good things <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTEvOGQ2YWFlNzctNTMwMy00YmMzLTk0MDQtOGUyMTYxYTE3ZDk0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>Holding Bitcoin (BTC) in treasury will soon become a corporate standard. Wall Street firm MicroStrategy recently made headlines when it decided to allocate a large portion of its treasury to Bitcoin, buying over 21,000 BTC in August and almost 17,000 more in September, making its CEO, Michael Saylor, seem quite prescient already. MicroStrategy stock rallied just like BTC as well \u2014 by 50%. According to Saylor, Bitcoin was the best inflation hedge and store of value, and in his <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/cash-is-trash-so-lets-bet-425-million-on-bitcoin-11604070071\">words<\/a>, \u201cCash is trash.\u201d His wager has, so far, been handsomely rewarding.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>MicroStrategy buying Bitcoin shows institutional investors seek to de-risk<\/em><\/strong><\/p>\n<p>Technically speaking, Bitcoin is, in fact, a worldwide store of value. BTC is not just a United States or an Asian phenomenon \u2014 it is held and exchanged around the world via myriad local exchanges, making the available liquidity pool both global and capillary in granularity.<\/p>\n<p>There are many technical reasons for calling Bitcoin an inflation hedge. BTC is a numerus-clausus asset class, meaning that there is a finite number in circulation (a maximum of 21 million coins) much like gold, high-end real estate and fine art. Furthermore, there is a dwindling new supply of Bitcoin \u2014 after the BTC mining halving \u2014 and a culture of long-term holding among most crypto participants. All of this spells a small supply. Historically, BTC seems to replay its past bull run waves post-halvings. This is the third halving, and it doesn\u2019t dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>oint. On the demand side, the picture is expanding.<\/p>\n<p>The world\u2019s economies are entering strong expansionary monetary phases \u2014 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ized <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.investopedia.com\/terms\/q\/quantitative-easing.asp\">quantitative easing<\/a>, so to speak \u2014 as a reaction to the COVID-19 pandemic. Bitcoin, so far, has outperformed every asset class throughout the crisis, spurring new demand and earning its wings as a global store of value. The fact that it is ethereal and not tied to real economic cash flows \u2014 unlike, say, stocks or real estate \u2014 plays to its advantage when the world\u2019s economies sputter about.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>What the COVID-19 pandemic means for blockchain and crypto<\/em><\/strong><\/p>\n<p>Bitcoin provides an alternative, digital safe haven. Demand, then, is materializing on pure monetary considerations, and Bitcoin is, technically speaking, a natural inflation hedge in that regard. It will soon be a corporate standard like owning treasury notes is.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Crypto_as_a_treasury_holdings\"><\/span>Crypto as a treasury holdings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There is also a slight ideological bent to the current corporate moves. For savvy chief financial officers, having a portion of the treasury held in digital currency provides a measure of regulatory hedge and arbitrage. No one controls the Bitcoin blockchain, and no government can hack it and seize operational funds. This added safety valve, a feature of most blockchains (censorship resistance), is in fact one of the main raisons d\u2019etre of BTC. This feature may be a deterrent for most central banks, as they want to run their own currencies and blockchains, not Bitcoin\u2019s, and they certainly want to control issuance, unlike Bitcoin\u2019s programmatic and nondiscretionary issuance. And it is, in fact, why Bitcoin will find favor with many chief financial officers, ironically both conservative and avant-garde ones.<\/p>\n<p>What is surprising in the case of Saylor and MicroStrategy is the size of the bet. With a market capitalization of <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/finance.yahoo.com\/quote\/MSTR\/\">around<\/a> $2 billion, a $425 million wager seems very consequential to the business. So far, it has paid off \u2014 dramatically. While waging everything may seem foolhardy, not waging anything is worse.<\/p>\n<p>What may seem foolhardy or extreme will seem run of the mill. With about a rough estimate of $10 trillion of corporate treasury worldwide, even a 3% allocation instead of cash represents $300 billion, which is about the aggregate value of Bitcoin, in liquid cash. These orders of magnitude say that BTC\u2019s new wave has arrived. The demand number gets big, and the supply gets smaller. Soon, every chief financial officer will be calmly asking not if the corporation needs exposure to the digital asset class but how to do it well and who to trust in the management of its digital assets.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Marc Fleury<\/strong> is the CEO and co-founder of Two Prime, a financial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> company that focuses on the financial application of crypto to the real economy. Building upon his financial expertise spanning from his role advising private equity firms to his academic pursuits in modern monetary and banking theories, he provides the strategic direction for core-vision investment strategy and partnerships for the firm.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/corporate-bitcoin-treasuries-are-here-which-can-only-mean-good-things\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Corporate Bitcoin treasuries are here, which can only mean good things &#8221; Holding Bitcoin (BTC) in treasury will soon become a corporate standard. Wall Street firm MicroStrategy recently made headlines when it decided to allocate a large portion of its treasury to Bitcoin, buying over 21,000 BTC in August and almost 17,000 more in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":117064,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/8d6aae77-5303-4bc3-9404-8e2161a17d94.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74863,75356,73711,4965],"class_list":["post-117063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-cryptocurrencies","tag-future-of-money","tag-investments","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/117063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=117063"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/117063\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/117064"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=117063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=117063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=117063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}