Almost six months ago, I told you a wave of new bitcoin buyers was emerging.
It was a growing development in the buildout of the crypto ecosystem… one that didn’t follow the path of more traditional assets like commodities, emerging markets, real estate, etc.
You see, when new asset classes have evolved in the past, institutions come first, and retail investors come second. Generally, institutions get in early and make massive gains… while Main Street gets the leftovers.
But when crypto came along, it turned the tables in favor of retail investors. Main street embraced crypto adoption, while Wall Street spent much of the last decade with its nose in the air…
Today, an estimated 130 million people own bitcoin… And crypto exchange Coinbase has more customers (56 million) than traditional brokerages Charles Schwab, E-Trade, Interactive Brokers, and TD Ameritrade combined.
At the same time, giant legacy companies, like Citi, Goldman Sachs, and Morgan Stanley offer or plan to offer bitcoin services… star hedge fund managers like Bill Miller, Paul Tudor Jones, and Stanley Druckenmiller have added bitcoin to their portfolios…
And just this week, Mathew McDermott, the head of global digital assets at Goldman Sachs said (emphasis mine):
Bitcoin is now considered an investable asset. It has its own idiosyncratic risk, partly because it’s still relatively new and going through an adoption phase… it’s not often that we get to witness the emergence of a new asset class.
Traditional finance is finally waking up to bitcoin’s potential… but since late 2020, another layer of Wall Street has been adding bitcoin to their balance sheets like never before: publicly traded companies.
Here’s a list of 10 public companies that have added large amounts of bitcoin to their balance sheets:
|Company||Market Cap||BTC Held||Bitcoin % of Mkt Cap|
|Hut 8 Mining||$577,249,712||3,233||21%|
Even in the middle of a massive broader crypto selloff, publicly traded companies like MicroStrategy and Tesla continue to hold billions of dollars in bitcoin. And several others hold hundreds of millions of dollars of bitcoin, too.
And despite his recent negative tweets about the crypto, Tesla CEO Elon Musk says that the company has not sold any of its bitcoin holdings. That’s a telling sign.
So why are these companies holding bitcoin on their balance sheets like never before? And in Musk’s case, why would Tesla continue to hold bitcoin after its CEO’s negative tweets? It all comes down to the dollar…
A “Superstar” Currency
Since the pandemic outbreak in March 2020, it’s estimated the Federal Reserve and Congress have spent about $6 trillion to rescue the U.S. economy.
As more and more money is printed, they make the rest of the dollars we hold worth less and less.
But bitcoin is not tied to a fiat currency. It’s programmed to reduce the supply coming to market. In essence, its scarcity means it will hold or rise in value over time and as the U.S. monetary supply expands.
To protect the value of their money, these companies have been turning to bitcoin.
One example is MicroStrategy. The company was the first to convert fiat holdings on its balance sheet to bitcoin back in August 2020. And it’s followed it up with several more buys since.
MicroStrategy CEO Michael Saylor even held a conference, “Bitcoin for Corporations,” in February. Representatives from almost 7,000 different enterprises attended his event, including three employees sent by Musk, according to reports.
And last month, I attended Texas A&M’s Bitcoin Conference where Saylor was a speaker.
When Saylor explained MicroStrategy’s reason for buying bitcoin, he said 0% interest combined with inflation were on track to lose the company half its treasury in just three-years’ time.
That was the turning point for Saylor. He saw that conventional corporate strategies were broken… the problem had become too large to ignore… and bitcoin was the solution.
Saylor and his team chose bitcoin over bonds, gold, real estate, and equities – a choice between losing half their treasury in a few years or the potential to secure it for years to come.
Saylor’s realization, and the fact that so many companies are adding – and still holding – bitcoin in their treasuries, indicates the asset class is maturing and gaining mainstream momentum…
But I can understand why many readers might be skeptical right now… after a week of falling crypto prices and wild volatility, it can be hard to see past the short term.
But that’s a mistake.
For years, Daily editor Teeka Tiwari has predicted that multilayers of institutions would flood into this space… even when the crypto market was at its most volatile. But selling into volatility is one of the worst things you can do.
When you begin to ask yourself a sea of questions about daily volatility… I want you to STOP… When you go from 35–50 million users up to 500 million users, you can’t help but make a fortune.
Bitcoin can go up 50% one day and drop 50% the next… just on daily headlines that have nothing to do with bitcoin’s long-term driver of mass adoption. So don’t let the day-to-day price movements shake you out of your positions.
The shift from a small market to a large market is the primary narrative you should be paying attention to… It’s truly a once-in-a-lifetime opportunity.
As Teeka always says… Volatility is the price of admission for life-changing gains in crypto. So treat this pullback as a gift. It won’t stop institutional adoption… In fact, I wouldn’t be surprised if companies were using this dip to scoop up bucketloads of bitcoin on the cheap.
How to Play the New Wave
Despite the significance of these publicly traded companies adding bitcoin to their balance sheets, we don’t suggest buying them for their bitcoin exposure.
Instead, the better option is owning bitcoin yourself. With bitcoin prices down around $39,000 today, it’s an ideal time to add bitcoin to your personal balance sheet.
And when the volatility settles and more companies, financial professionals, and individuals buy bitcoin as a hedge against moneyprinting and inflation, its price has nowhere to go but up.
To get ahead of institutional crypto adoption, start with a small stake in bitcoin, keep a long-term mindset, and let it ride… This is the stage where you can make 5x, 10x, 20x, or more on your money.
Analyst, Palm Beach Daily
P.S. As institutional bitcoin adoption continues to gain momentum, a long-term $30 trillion revolution in an underlying crypto technology is moving right along with it…
And at its current pace, Teeka believes it will become 25x bigger than bitcoin… like buying Microsoft in the ‘80s… or Amazon in the ‘90s.
Any one of these could have made you a millionaire many times over, starting with very little… but just like those investments, you need to get in early.
That’s why Teeka recently shared the details of his “No. 1 investment of the decade” in an exclusive interview. Click here to watch.