Large entity moves over $628 million worth of Bitcoin

A respected crypto strategist, Kraken’s Pierre Rochard, recently outlined why the world’s flagship crypto asset will see an explosion of corporate interest in the coming year.

In Kraken’s 2021 crypto outlook presentation, the crypto expert anticipated that 50% of the top 500 companies in the world would hold Bitcoin in their portfolios by the end of 2021.

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Kraken’s 2021 Crypto Market Outlook https://t.co/3GSqOZjAXR

— Kraken Exchange (@krakenfx) December 17, 2020

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“My boldest prediction is that if we take the S&P 500, the world’s largest corporations, I think that by the end of 2021, more than half of them will have Bitcoin on their balance sheet, and I think that will be driven by simple economics, which is that issuing shares to buy Bitcoin causes your stock price to go up more than the dilution.

And so because that is the case – we have market data showing this – we’re going to see a huge amount of corporate adoption of Bitcoin, and we’ll even see like what [MicroStrategy CEO] Michael Saylor is doing, corporations issuing large quantities of bonds, fixed-income instruments – whether they’re convertible or whatever – in order to just bulk buy Bitcoin.”

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The crypto strategist’s prediction seems to be already playing out, as business intelligence firm, MicroStrategy, has of late been in a buying spree of Bitcoins, coupled with leading payments giant Square’s massive Bitcoin purchase few months ago.

Recall that some months back, Nairametrics revealed how a publicly traded company, MicroStrategy based in the world’s largest economy, adopted Bitcoin as a treasury reserve asset to hedge against fiat inflation. This is a big deal, as BTC is being used as intended – a hard money/savings instrument.

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“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said Michael J. Saylor, CEO, MicroStrategy Incorporated.

“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” he added.

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Bottom line

It is critical to note that as global financial regulators begin to implement their regulatory framework, supporting cryptos like Bitcoin, it becomes a matter of months for global brands to increase their buying pressures on Bitcoin. The present price surely looks like a discount when considering those variables.

READ: How investors make money from Bitcoin without owning crypto

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