A larger Bitcoin (BTC) Maximalist than Michael Saylor? You probably won’t find that. The founder of MicroSstratey, nowadays simply Strategy, has completely deposited on Bitcoin and keeps up. The big question is: is this a brilliant move that takes companies to new heights, or a life -threatening gamble that puts their future at risk?
More and more companies are following Saylor’s example
Strategy is no longer the only player with a bitcoin fixation. More and more companies seem to be infected with the “Saylor virus” and convert their cash reserves in BTC. From meal deliverer Goodfood Market Corp. Until the Japanese hotel company Metaplanet, which recently added hundreds of coins, and even medical tech companies – the list of companies that fill their balance with Bitcoin is growing steadily.
And for now it seems to work. In the current Bullmarkt, many of these companies see their share price rise considerably since they have added the digital currency to their balance. Some companies even go one step further: they borrow money to buy even more BTC. A brilliant move as long as the rate continues to rise, but a ticking time bomb when the market turns.
A daring strategy with risks
Yet there is also criticism. Analysts warn of the long -term risks of this strategy. Austin Campbell, former Wall Street trader, specifically warns of companies that buy Bitcoin with borrowed money. “If you buy things with debts and the price thereof falls while your loan has to be repaid, then you have a problem,” says Campbell.
The recent rises and the new All-Time High (ATH) of almost $ 109,000 seem to be playing in the card for the time being. But we all know that Bitcoin also knows hard crashes. If the prices collapse, many companies can have serious financial problems.
Spot ETFs: competition for BTC strategies?
In addition, there is another challenge for companies that hold Bitcoin: the rise of Spot Bitcoin Exchange Traded Funds (ETFs).
With these new funds, investors can now go directly into BTC without using intermediaries such as Strategy or Coinbase. As a result, the hype around companies with Bitcoin could decrease on the balance sheet, simply because investors can put their money directly in the digital currency.
Claim € 10 free today and do not pay trading costs over the first € 10,000!
Grab this unique opportunity with Newsbit and Bitvavo by creating an account now via the button below. Only deposit € 10 and receive € 10 free of charge. Moreover, you can act without costs for 7 days over your first € 10,000 in transactions. Start today and take advantage of the growing popularity of Crypto!
Make your account and claim € 10 for free.
Don’t miss this opportunity to take advantage of the growing popularity of Crypto!
Source: https://newsbit.nl/michael-saylor-zet-ceos-aan-tot-bitcoin-gekte-dreigt-er-een-financiele-ramp/
