Roger Freder

Companies accumulating bitcoin

The trend for companies to accumulate Bitcoin as a capital preservation strategy is gaining significant momentum, driven by several converging factors. The combination of record levels of global debt, persistent inflationary pressures and the need for alternatives to the traditional financial system has led more and more corporate treasuries to consider Bitcoin as an asset protection tool. MicroStrategy, which started this movement more aggressively, has proven to be a successful case study, especially considering the substantial return on its initial investment. MicroStrategy has led a quiet revolution in the corporate world, establishing a new paradigm for corporate treasury management through its aggressive bitcoin accumulation strategy. The company has not only put bitcoin on its balance sheet, but has developed a sophisticated financing strategy through convertible notes and stock offerings that allows it to maximize its exposure to the asset. The success of this approach, evidenced by the significant appreciation of the company's shares and the growth of its bitcoin reserves to over 439,000 $BTC , is inspiring other companies to follow a similar path.

Companies such as Semler Scientific, which has been allocating a significant part of its cash to Bitcoin, and Meta Planet, which has consistently increased its reserves of the asset, are following in MicroStrategy's footsteps, albeit on a smaller scale. Marathon Digital Holdings, one of the world's largest Bitcoin miners, has also adopted an aggressive HODL strategy, keeping most of the bitcoins mined on its balance sheet and using debt instruments to finance the expansion of its operations without having to sell its reserves and allocate part of the debt raised in bitcoin.
What makes this movement particularly interesting is the increasing sophistication of the financing strategies employed. Following the MicroStrategy model, these companies are discovering that they can use convertible notes with extremely low interest rates (sometimes even raising capital at zero interest).

Donald Trump's victory in the US elections signals a fundamental transformation in the regulatory environment for Bitcoin and cryptocurrencies. This change is mainly driven by the exceptional composition of his team, which includes figures deeply involved in the crypto ecosystem. David Sacks, appointed to lead the government's vision for Artificial Intelligence and cryptocurrencies, has been a Bitcoin investor since 2013 and brings with him a deep understanding of the sector. Paul Atkins, the nominee to head the SEC, has a consistent track record of advocating less stringent regulation for digital assets, representing a dramatic change from the current administration. The departure of Gary Gensler from the SEC, known for his hostile stance towards the sector, combined with the entry of figures such as J.D. Vance, Howard Lutnick and Vivek Ramaswamy, who are active Bitcoin investors, promises a significant change in regulatory approach. The new administration should focus on deregulation and encouraging the free market, abandoning the hostile policy that has characterized recent years.

Among the concrete proposals expected to take shape is the creation of the Department of Government Efficiency (DOGE), which will be led by Elon Musk, CEO of Tesla, the company that holds the fourth largest amount of bitcoins on its balance sheet with a total of 9,720 BTCs. Most importantly, the development of a clear regulatory framework for the sector is expected, something long awaited by the industry. This combination of pro-crypto leadership and deregulation agenda should create a significantly more favorable environment for innovation and development in the Bitcoin ecosystem, marking the beginning of a new era for the sector in the United States. For the first time, Bitcoin will be sailing with the political wind in its favor, in marked contrast to the last four years with the Biden administration.
$BTC #CryptoMarketDip #BullCyclePrediction

The price of $BTC

The definition of Bitcoin's potential appreciation in 2025 necessarily involves analyzing the American political scenario and the possible approval of Bitcoin as a strategic reserve asset of the United States. This decision represents a watershed for the market, as it would trigger a global race for Bitcoin among nations, similar to what has historically occurred with gold. Given this reality, we can establish two distinct price scenarios for 2025:

Scenario 1 - With Approval of the Strategic Reserve

Bitcoin reaches US$500,000-1,000,000, surpassing half of gold's market cap and perhaps reaching parity with it. This scenario is supported by recent analyses by Bloomberg and Forbes, which project a market capitalization of US$15 trillion for Bitcoin in this situation and by the recognition of several market agents that Bitcoin is digital gold. The race among nations to accumulate Bitcoin as a strategic reserve would be the main catalyst for this appreciation.

Scenario 2 – No Strategic Reserve Approval

Bitcoin reaches approximately $250,000, driven primarily by increased institutional investors demand via ETFs and corporate accumulation. Even without strategic reserve approval, the combination of successful ETFs, companies following the MicroStrategy model, and regulatory clarity brought by the Trump administration will be enough to create significant buying pressure that will generate significant returns through the top of this bull market. #BullCyclePrediction #CryptoMarketDip