Canaccord Genuity: More companies may follow MicroStrategy's lead in investing in Bitcoin

At the 2024 Digital Assets Seminar held by Canadian investment bank Canaccord Genuity last week, a team of analysts headed by Joseph Vafi stated that since the Bitcoin spot ETF obtained approval from the U.S. SEC in January this year Approval of listing has also boosted market investment demand for spot BTC: It is now increasingly clear that ETFs are driving additional demand for spot BTC, thereby producing a huge exponential effect. Spot BTC is more attractive than ETFs because as Bitcoin matures as an asset class, there may be more ways to hedge risk and generate HODL returns.

More companies may imitate micro-strategies to reserve Bitcoin

Canaccord Genuity continued to point out that in the next few months, the scope of influence of Bitcoin spot ETFs will continue to expand, Some institutions, including certain sovereign funds, may have invested in Bitcoin, and official reports from such investors may be made public soon.

In addition, according to the new FASB accounting standards, coupled with high inflation, it may also prompt more companies to follow MicroStrategy and use Bitcoin as an asset reserve, adding onto its company's balance sheet.

Samir Kerbage, chief investment officer of Hashdex, also believes that the influence of Bitcoin spot ETFs will continue to grow: many banks, endowments and pension funds around the world have just begun the due diligence process and are considering investing in BTC through newly launched ETFs. As these large financial institutions make decisions in the coming months, inflows are likely to increase again, potentially setting a new milestone for one of the most successful ETF launches in U.S. history.

MicroStrategy’s stock price has soared more than 7 times in five years

MicroStrategy, the dominant Bitcoin holding among US listed companies, was founded in 1989. It was originally a company that provided data analysis, software development and cloud computing. technology company, but its revenue capabilities have not been particularly outstanding in recent years. It was not until August 2020 that MicroStrategy announced that it would continue to invest in Bitcoin, thus starting its mighty path of skyrocketing stock prices.

According to Google Finance, MicroStrategy’s share price has soared from US$140 to the current US$1,270 in the past five years, an increase of nearly 750%. And two of the periods of high growth also correspond to Bitcoin’s bull market, one in 2021 and the other this year.

Micro-strategy Bitcoin holdings have a floating profit of 5.806 billion

According to current data from bitcointreasuries, Micro-Strategy has spent US$7.533 billion to purchase 214,246 Bitcoins so far. On Bitcoin When it exceeded US$70,000 again this week, the highest floating profit in the account had reached US$7.647 billion.

Although the current price of Bitcoin has corrected, it still has unrealized profits of US$5.806 billion.

If there is a wave of corporate Bitcoin purchases, how much incremental funds will it bring?

There are successful cases of micro-strategy. The Japanese company Metaplanet also announced this month that it will invest 1 billion yen to buy Bitcoin. Let us just imagine, if companies start a wave of Bitcoin purchases, there will be How much money is being poured into the crypto market?

Based on the current market capitalization of the U.S. stock market of US$51 trillion, if each company uses 1% of its market capitalization to purchase Bitcoin, that is equivalent to US$510 billion in incremental funds. You need to know, The current total market value of Bitcoin is only US$1.22 trillion, which is enough to push the price of Bitcoin to another level.

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