Standard Chartered reports that the Bitcoin reserve strategy has resulted in at least 61 corporate treasuries holding a total of 3.2% all Bitcoins ever created.
Sixty-three,897 Bitcoin have now been acquired by companies listed on public markets around the globe.BTCGeoff Kendrick’s report, published by Cointelegraph on 3 June, stated that Standard Chartered is the global leader of research for digital assets.
Kendrick’s report focused on Bitcoin’s increasing popularity as an asset for treasury, and warned about the potential risks that could arise from corporate adoption.
“Bitcoin treasuries are adding to Bitcoin buying pressure for now, but we see a risk that this may reverse over time,” Analyst said:
Bitcoin Treasury Bonds as an alternative to price decline
The report shows that 58 of the 61 corporate Treasurys analyzed have multiples of net asset value above 1. This means their value is higher than their net assets.
“For now, we think this is justified by market inefficiencies, including regulatory hurdles to investor access and conservative investment committee processes,” Kendrick wrote, adding:
“But as these inefficiencies are eventually removed, we think Bitcoin treasuries could become a source of downside price pressure and volatility.”
Bitcoin’s volatility may further drive BTC prices below average purchases prices, since 50% of companies charge averages above $90,000 for their new treasures. It is a much higher figure than previously thought. average cost of Strategy’s 580,955 Bitcoin holdings BTC was purchased for $70,023 each.
Strategy “imitators” Double BTC in 2 Months
Kendrick noted that Strategy encompasses a significant portion. “imitators” Bitcoins holdings are on the rise, and have been for some time.
In particular, according to the report, Bitcoin holdings by 60 of these companies doubled within the last two month, rising from below 50,000 BTC and up to approximately 100,000 BTC.
Kendrick noted that the pace at which Strategy has been buying BTC is far faster. The other two have only added 47,000 BTC during the same period.
SolarBank Canada among latest solar adopters
Standard Chartered’s report was released at the same moment as a group of other companies, including SolarBank (Canada’s developer for renewable energy), announced that they had adopted a Bitcoin-based strategy.
SolarBank, a leading provider of solar energy solutions announced Coinbase Prime has announced its Bitcoin Treasury Strategy on June 3rd, reporting that they have opened a Coinbase Prime account to secure custody USDC.USDC( Services and A self-custodial wallet Bitcoin has been a major source of revenue for the company.
The same day, Paris-based Crypto firm Blockchain Group announced a $68 million Bitcoin acquisitionFollowing in the footsteps Norwegian cryptocurrency brokerage K33. raised $6.2 million to buy BTC Late May is the best time to buy.
Related: Michael Saylor’s Strategy offers $250M preferred stock to buy more Bitcoin
Strategy, the Bitcoin strategy inspiration, has no concerns whatsoever about Standard Chartered’s fears about increasing corporate Bitcoin adoption.
Michael Saylor co-founder at Strategy, says the company is structured to maintain its capital structure. stable even if Bitcoin falls 90% You can also find out more about the following: “stays there for four or five years.”
“It wouldn’t be a good outcome for the equity holders. The people at the top of the capital structure would suffer because they’re levered, but everybody else in the capital structure would get paid out,” Saylor was quoted in a Financial Times film in May.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow
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Source: cointelegraph.com
