CRYPTO MOVERS AND PRICES
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Crypto is rallying with Ethereum (ETH) and Chainlink (LINK) both reaching new all-time price highs over the weekend. Bitcoin (BTC) is continuing its recovery from last week’s sell-off, though ETH volumes have been higher on Bitfinex throughout the weekend and this morning.
Crypto Story of the Day
Next week, MicroStrategy, the “first publicly traded company to invest significant treasury assets in [BTC],” will host a free virtual conference aimed at educating other corporations on how to “plug [BTC] into their balance sheet [or PnL].” The conference will be watched closely to gauge MicroStrategy’s success in promoting the adoption of BTC.
The February 3 and 4 conference, titled “Bitcoin for Corporations,” was announced on January 12 by MicroStrategy CEO Michael Saylor. The first day will see presentations on tax, audit, and legal considerations in regard to BTC and will be hosted by attorneys specializing in digital assets, along with tax and accounting experts from Deloitte. The firm’s CEO Michael Saylor will also present the “various macroeconomic factors driving [BTC’s] adoption by corporations [and] institutional investors.”
The second day will feature an “Overview of Strategic Vendors and Offerings in the Bitcoin Marketplace,” during which executives from notable crypto firms such as Binance, Coinbase, Galaxy, and Grayscale will present their services and outlook related to BTC.
In an interview Friday morning with CNBC, Saylor revealed that his firm will be open-sourcing documents and methodologies associated with the firm’s to-date purchase of roughly 70,784 BTC as part of the conference. In the interview, Saylor opined that 2021 will see corporations “[embracing] [BTC] either on their balance sheet like [they] have, because it converts a liability into an asset, or they’re going to do what Square and PayPal and Grayscale have done and they’re going to build [BTC] into their products and services…”
On Friday Morning, MicroStrategy announced purchasing an additional 314 BTC for USD 10 million “at an average price of approximately $31,808 per [BTC].” The firm’s total BTC holding now stands at 70,784 BTC, or about USD 2.37 billion. The firm’s stock has appreciated by 330% since its initial purchase of 21,454 BTC for USD 250 million in August 2020. Google searches for MicroStrategy peaked in the week of January 10-16, coinciding with the conference’s announcement.
MicroStrategy’s 2-day conference will be a concerted pitch to corporations on the merits of embracing BTC. To date, Saylor has made his case clear on the merits of BTC as a treasury reserve asset. However, the conference will also feature material about the “ways in which corporations can integrate with the Bitcoin monetary network." This implies the conference will provide equal focus on the practical uses for BTC, in areas such payments, and its use in finance as a perceived hedge against inflation.
We view MicroStrategy’s overall approach to BTC as likely too extreme for most firms to replicate. That said, we think it’s entirely logical that the turnkey teaching method MicroStrategy and Saylor are presenting could encourage other corporates to make smaller entries into the space.