What if Public Companies commit 1% of cash reserves to Bitcoin? Bitcoin jumps by another $40k...
With all the talk about corporations adding Bitcoin, perhaps it's time to take a look at the numbers...
Tesla was the talk of the world this week with their surprise announcement to add bitcoin to their corporate balance sheet.
Though, it shouldn't have been a surprise to any of you out there following along... This was posted several months ago:
And then this:
Either way, it finally actually happened and the crypto world has been on fire ever since.
Now that the dust is settling, lets take a look at the corporate holdings by the top public companies....
Here's a list of the largest bitcoin holdings by public companies:
(Source: https://twitter.com/BTC_Archive/status/1359604905040891910/photo/1)
It's no surprise that MSTR, TSLA, and Galaxy Digital make up the top 3 spots (Grayscale is not included on this list since it is simply a Bitcoin Trust, otherwise they would be far and away number 1).
All of these companies are sitting on very large gains from their bitcoin investment, with even TSLA, the latest to get involved, sitting on roughly $500 million in profits already.
However, this is just a handful of companies taking the bitcoin plunge....
What would happen if all of the S&P 500 companies put some of their cash into bitcoin?
What might happen to the price of bitcoin if publicly traded companies all made the leap to bitcoin?
Specifically, what might happen to the price of bitcoin should they collectively put 1% of their cash into bitcoin, or say, 10%?
Cathie Wood of ARK Investments did an interview last week with yahoo finance talking about exactly that...
Based on ARK's research, if they collectively put 1% of their cash into bitcoin, it would account for at least another $40k bump in the price of bitcoin from here:
(Source: https://finance.yahoo.com/news/ark-cathie-wood-bitcoin-400000-000053537.html)
Nice!
But, if they were to put roughly 10% of their cash piles into bitcoin, it would send the price of bitcoin up by more than $400k.
And that is just S&P 500 companies!
While that 10% number may sound crazy at first, keep in mind that MSTR pretty much put 100% of their cash reserves into bitcoin (and even sold convertible notes to raise more funds to put into bitcoin), so if some put less than 10%, it could still average out to that 10% number.
And again, this is just S&P 500 companies!
If that doesn't get you excited about where bitcoin could potentially be heading, you need to check your pulse! :)
Stay informed my friends.
-Doc