Did you know that since the start of the pandemic, the Federal Reserve has printed and lent out so much money that it now equates to 20% of all the dollars in circulating supply (Capital and Conflict)?
As more dollars are printed, talks of additional stimulus being injected into the U.S. economy is on the horizon and the threat of inflation looms. It was also reported this week that the U.S. National Debt has surpassed GDP (Daily Caller). It’s for these reasons and others, that major companies with cash reserves are dubious about the long-term stability of the U.S. dollar and looking for a hedge to protect their assets and build their wealth.
Enter Bitcoin. There is a rising trend of public companies adding Bitcoin to their balance sheet. The trend started to take off when MicroStrategy announced that it was going to purchase $175 million more bitcoin, upping holdings to $425 Million in Bitcoin they plan to hold for a century (Coindesk).
Long time Bitcoin bull and Twitter CEO, Jack Dorsey, announced that Square was adding $50 Million in Bitcoin to their balance sheet, and released how their company executed this effort by open-sourcing the documents (Forbes).
Grayscale, one of the largest digital currency asset managers, raised $1.05 billion for its investment products during Q3 2020 (The Block).
Voyager was also mentioned in the news which has spread like wildfire, as we are a public company that also holds Bitcoin on behalf of our customers of over 1,200 BTC (Bitcoin.com).
Disclosed public companies alone hold 2.85% of all Bitcoin in circulating supply. It’s fair to say there are institutions purchasing behind the scenes, and it’s expected that many more public companies will follow suit.
Fidelity, one of the largest brokers in the World, recommended that their customers consider allocating 5% of their portfolio into Bitcoin. They also hypothesized a $1 trillion dollar market cap for BTC, which would be over 5x from current prices (Coindesk).
Whether it’s retail investors, accredited investors, institutions, or public companies, one thing remains glaringly obvious. There is a far greater demand than supply of Bitcoin, and people and companies around the world are turning toward it for an economic and inflation hedge. This has been reflected in the stable price climb of Bitcoin in the short-term, as the rocket engines are being fueled up on the launch pad.
Top Market Movers
- Bitcoin Cash (BCH) +6.3%
- Cardano (ADA) +6.0%
- Cosmos (ATOM) +5.4%
- Chainlink (LINK) +5.2%
The Golden Record Broadcast
This week we launched our first-ever The Golden Record Broadcast! Hosts Charlie Shrem & Voyager CEO Steve Ehrlich, gave insight on the current economy and money being printed in the US, what’s going on in the crypto market, and discussed what’s next for the Voyager app!
Don’t worry if you missed the live broadcast because you can still watch a recap right here.
Let us know what you want to hear on our next live broadcast by using #TheGoldenRecord in the comments section of our Twitter @investvoyager!
AMB Crypto > "What Got These Companies Suddenly Interested in Bitcoin?
News BTC > "These 11 Companies Own 3% of the Bitcoin Supply; Is a Liquidity Crisis Brewing?"
Cointelegraph > "Bankless Society 'Inevitable' Due To Crypto, Says Morgan Creek CEO"
PYMNTS > "Crypto Gets a Look From Corporate Investors"
The Block > "Grayscale Sees More Than $1 Billion in New Investments in Q3"