Sat, September 07, 2024 at 19:39

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some intriguing news about US companies and their increasing interest in Bitcoin.

  • 
• Annie

  • Oh, really?

  • That sounds fascinating!😊 Can you tell me more about it?

  
• 

  Kang-hoon

  • Certainly.

  • A new report suggests that US companies are expected to purchase $10.3 billion worth of Bitcoin over the next 18 months.

  • This is part of a growing trend in corporate treasury strategies.

• Annie

  • Wow, that's a significant amount!

  • Why are companies doing this?

  
• ADward

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• 

  Kang-hoon

  • The main reason is to preserve their wealth amid inflation concerns.

  • Traditional corporate treasury management, which focuses on cash and cash-like instruments, tends to lose value in the long run due to inflation.

• Annie

  • I see.

  • So, even big companies are affected by this?

  
• 

  Kang-hoon

  • Yes, indeed.

  • For instance, Apple has lost about $15 billion over the past ten years as inflation reduced the value of its treasury holdings.

  • 
• Annie

  • That's quite a loss!

  • How are companies like MicroStrategy handling this?

  
• 

  Kang-hoon

  • MicroStrategy, led by Michael Saylor, has been using Bitcoin as a hedge against inflation.

  • Saylor refers to this strategy as a path to economic immortality because of Bitcoin's fixed supply and low risk compared to traditional assets.

• Annie

  • Economic immortality?

  • That's a bold statement.

  • How has MicroStrategy performed with this strategy?

  
• 

  Kang-hoon

  • Quite well, actually.

  • After adopting Bitcoin as its primary treasury reserve, MicroStrategy's share price increased by over 1,000%.

  • In contrast, Berkshire Hathaway's share price increased by only 104.75%.

• Annie

  • That's impressive!

  • How much Bitcoin does MicroStrategy currently hold?

  
• 

  Kang-hoon

  • As of Q2 2024, MicroStrategy holds 226,500 BTC, valued at approximately $14.7 billion.

  • In June 2024, they even issued debt securities worth $800 million to purchase an additional 11,931 BTC.

• Annie

  • Wow, they are really committed to this strategy.

  • Do you think this trend will continue?

  
• 

  Kang-hoon

  • Yes, I believe so.

  • The report indicates that more US companies will follow this trend, purchasing $10.3 billion worth of Bitcoin over the next 18 months.

• Annie

  • That's a lot of investment in Bitcoin.

  • Do you think this is good news for the market?

  
• 

  Kang-hoon

  • Absolutely.

  • This is a positive development.

  • As more companies adopt Bitcoin for their treasury reserves, it will likely drive up demand and stabilize the market, making Bitcoin a more mainstream financial asset.

• Annie

  • Thank you, Kang-hoon.

  • This has been very enlightening!😊

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • I'm glad I could help.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.