Bitcoin: "Thousands Of Companies" About To Cross The Rubicon

An avalanche of companies is about to make bitcoin their primary treasury asset and push bitcoin to new highs.

The Bitcoin Strategy

Not a day goes by without a new company making bitcoin their primary treasury asset. This trend is expected to accelerate according to Matt Hougan, director at Bitwise Asset Management, who anticipates BTC at $200,000.

Mr. Hougan stated on CNBC that the race has just begun and that thousands of companies will soon adopt bitcoin for their treasury. Today, 131 publicly traded companies collectively hold 819,000 bitcoins, nearly 4% of circulating BTC (88 billion $).

Most of these companies are North American, but not only. China, Japan, Singapore, Germany, Korea, Brazil, and England are also involved. And even in France, with only one representative: Blockchain Group.

There are 35 private companies holding nearly 300,000 bitcoins. Examples include Block, Tether, SpaceX, etc.

Matt Hougan attributes this “megatrend” to growing concerns about the value of the dollar threatened by growing deficits and geopolitical confrontations.

For him, bitcoin is seen as a superior option to protect corporate wealth from monetary devaluation. “Companies that took the bold initiative to add bitcoin to their balance sheets are rewarded.”

Pioneers have already benefited from bitcoin’s rise from under $40,000 in January 2024 to $70,000 in June 2024. And now over $107,000.

For example, the 8,027 bitcoins purchased by Block between 2020 and 2024 are now worth 864 million dollars, a 300% increase. Conversely, the dollar has only appreciated by 2%.

Companies Have No More Choice

There will never be more than 21 million bitcoins and 19.87 million are already in circulation, as shown in real time by this specialized dashboard. A striking contrast to the unlimited expansion of national currencies.

Ultimately, everything stems from the difficulty of growing the economy (due to energy constraints). Without growth, the system is forced to incur ever more debt to honor political promises (e.g., pensions). The result is inflation.

Thus, without drastic productivity increases, wages and pensions cannot keep pace. Debt/GDP ratios deteriorate, forcing central banks to buy back debt to neutralize the exponential effect of interest.

On this topic, don’t miss our article: French Debt Interest Explodes.

Granted, AI offers prospects to boost productivity. But transport is (and will remain) the limiting factor for economic growth. Yet, 95% of transport runs on oil, whose supply is becoming increasingly uncertain, as highlighted in the Shift Project report on oil peak and shale oil.

Here is a very interesting thread of five short videos on the subject (for English speakers):

States are aware of the consequences of this physical bottleneck on currency value. The giant fund Fidelity reminds in this study that the IMF publishes articles affirming central banks have no choice but to print money to artificially reduce the weight of national debts.

But companies are not states. Participating in the public debt Ponzi scheme is not mandatory. Bitcoin offers for the first time a simple, solid, and liquid alternative. It has never been easier for a company to place its treasury in bitcoin thanks to ETFs.

This booming treasury revolution suggests that $200,000 for one bitcoin is just around the corner.