Feb 5, 2021
Bitcoin for Corporations Conference Reinvigorates Price Action
Don’t wait to buy BTC, buy BTC and wait.
That’s right — the best Bitcoin conference ever (in my opinion) is happening right now thanks to the host, MicroStrategy. The best part is you can enjoy it from the comfort of your own home (or, in my case while catching some rays by the pool — please don’t hate me)! Bitcoin/crypto conferences are fun and all but they can be difficult to navigate if you are there for business or to learn. For a curious new entrant to Bitcoin, it is tough to find any objectivity amidst a sea of confirmation bias.
I’ll highlight some of the key takeaways from the conference here later in this article.
What we saw at the desk
Oddly enough, this week actually felt pretty short relative to most others. Maybe it was because we were extra busy or maybe because I’ve finally adjusted to time in the Pacific, probably a little bit of both.
Bitcoin started picking up momentum after a healthy consolidation to the low 30s to kick off the week. As we moved into Wednesday, Bitcoin and the broader crypto market got a nice lift with Bitcoin touching a high of $38,200.
It was a mixed bag of tokens traded this week but the King still led the way. ETH followed quite closely as it uppercutted its way through all time highs pushing up the Ethereum-based tokens along the way.
The DeFi space has been on an absolute tear this year and this week was no different. Personally, I’ve tossed some moon bags (insignificant amounts of money) across a handful of DeFi tokens that a monkey could’ve picked and each one has at minimum 2x’d over the past month or so.
To give you an idea of the current state of euphoria the DeFi space: yesterday, the king of DeFi, yearn.finance (YFI) was exploited and $11.1m was drained from its vault — the attacker got away $2.8m. YFI quickly dropped a few points but it bounced right back up to where it was pre-hack…incredible display of resilience.
We felt the elevated levels of enthusiasm at the desk the entire week. There was also a ton of positive sentiment off the back of the MicroStrategy conference which started Wednesday. It sort of reminded me of back in the day when there was a popular annual crypto conference based in NYC called Consensus that always had a huge price impact on the market. It’s funny to think how thousands of amped up conference goers tipsy off of the Kool-Aid were able to move the market — I’ve said it before but I will repeat: this time is different…but for different reasons.
Bitcoin macro strategy…from MicroStrategy
Back to the best Bitcoin conference ever. Before I crack on, you can find a link to check out the recorded segments here.
As I’m sure you’re all aware, MicroStrategy made history last summer when it decided to move its ~$600m in cash reserves to Bitcoin. That was followed by a raise of $650m via convertible note offering which flowed into BTC. Then, just last week they purchased an additional $10m worth of BTC. The company now owns 70,784 Bitcoin worth around $2.68 billion. It’s safe to say that MicroStrategy is all-in on Bitcoin.
MicroStrategy isn’t the only corporation thinking about Bitcoin and their now famous CEO Michael Saylor knows that all too well. So, he decided to host a conference where he would open up his playbook for corporations looking to plug into the new technology. Thousands of corporate executives have been in attendance this week including execs from SpaceX — go on Elon!
I had the conference on in the background while I was working this week and missed so many amazing soundbites that I would’ve loved to include here but I plan to go back and listen to all segments again this weekend. They are very important. If you’re reading this right now it’s either because you’re invested in Bitcoin, interested in Bitcoin, or find my attempt at journalism comical — if it’s anything but the last reason then I urge you to do the same.
It is no longer a question as to whether or not the infrastructure is in place to support institutional money — we’re there. I feel like I’ve said it more than a few times recently but we’re a relatively small shop and we’re seeing institutional flow. We’ve been working with hedge funds, family offices, and private and publicly traded companies who are moving parts of their treasury to Bitcoin. I can’t even imagine what some of these larger desks in the US are seeing. Ross Stevens, Founder of New York Digital Investment Group (NYDIG), currently manages over $6bn of Bitcoin for institutions and has $25bn in Bitcoin on its order books which he expects to have under management by the end of the year.
The chart above is from ARK Invest’s Big Ideas 2021 where they spell out the ramifications for Bitcoin price increases if corporations on the S&P 500 put 1% and 10% into Bitcoin. I’m not saying that it’s going to happen but there are now case studies showing what happens if they decide to plug their treasury into Bitcoin — the public markets love it and so do Bitcoin investors. The game: quietly build your position, announce it, instill added levels of confidence, and watch the price of Bitcoin and the subsequent value of your company increase.
If this conference taught us anything it’s that the actionable items behind the corporate decision making process are cumbersome to say the least. However, you better believe that for every MicroStrategy, Square, MassMutal, Ruffer, etc., there are many corporations *globally* thinking about, or are in the process of, including Bitcoin in their treasury. Now, thanks to MicroStrategy they have the complete Bitcoin corporate playbook.
Watch this:
The institutional herd isn’t coming, it’s already here.
In case you missed it…
- Visa Reveals Bitcoin and Crypto Banking Roadmap
https://finance.yahoo.com/news/visa-expands-crypto-footprint-first-144828078.html - *Fidelity: 2020 Bitcoin Retrospective https://www.fidelitydigitalassets.com/articles/2020-bitcoin-retrospective
- *MicroStrategy and Bitcoin: the Mother of All Fat Tails?https://millervalue.com/4q20-income-strategy-letter/
- Why India Should Buy Bitcoin
https://balajis.com/why-india-should-buy-bitcoin/#10-india-should-buy-bitcoin-build-a-stockchain-attract-crypto-and-encourage-decentralization - Yearn Finance DAI Vault ‘Has Suffered an Exploit’; $11M Drained https://www.coindesk.com/yearn-finance-dai-vault-exploit
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