Bitcoin News Today: Bitcoin Treasuries Near 1 Million BTC as Corporate Bets Pay Off

SWC CEO Andrew Webley has provided insights into the company’s strategic direction and growth, emphasizing SWC’s expanding role in the corporate adoption of Bitcoin as a reserve asset. The broader trend of corporate Bitcoin accumulation has gained significant momentum, with public companies now collectively holding over 1,000,698 BTC, valued at more than $111 billion at current prices. This milestone underscores the growing interest in Bitcoin as a long-term store of value and a strategic asset in corporate balance sheets.

Webley highlighted the importance of strategic acquisitions and capital optimization in SWC’s growth. The company has taken a long-term view on Bitcoin, aligning with firms such as Strategy, which holds 636,505 BTC and serves as the largest corporate holder of Bitcoin. The firm, founded by Michael Saylor, has been instrumental in setting a precedent for corporate Bitcoin adoption. Webley also noted that new entrants, including XXI and Bitcoin Standard Treasury, have rapidly expanded their holdings, signaling a shift in how companies view digital assets.

Corporate entities have employed various financing mechanisms to fund their Bitcoin investments. These include convertible debt offerings, equity raises, and SPACs. For instance, XXI and the Bitcoin Standard Treasury Company were launched specifically to build Bitcoin treasuries and offer equity-linked exposure to investors. Similarly, Euro-denominated Bitcoin firm Treasury, backed by Winklevoss Capital and Nakamoto Holdings, raised 126 million euros in a private round and used the proceeds to purchase over 1,000 BTC. The company aims to list on Euronext Amsterdam through a reverse listing, a strategy that allows private firms to gain public listing status without meeting the full regulatory requirements.

The global expansion of Bitcoin treasuries is also evident beyond the U.S., with 120 public firms now holding Bitcoin in countries such as Canada, the UK, and China Hong Kong. This trend has led to a growing number of corporate Bitcoin treasury models, particularly in Europe, where companies such as German firm Bitcoin Group (3,605 BTC), French Sequans Communications (3,205 BTC), and UK-based The Smarter Web Company (2,440 BTC) have emerged as notable players. The increasing adoption has fueled discussions about potential supply shocks, given that only 5.2% of Bitcoin’s fixed 21 million supply remains to be mined. Analysts suggest that continued demand may further tighten supply and drive prices higher.

Despite the growing popularity of Bitcoin treasuries, the model is not without its challenges. A recent report by venture capital firm Breed warned of the risk of a “death spiral” for companies trading too close to net asset value. Additionally, Josip Rupena, former Goldman Sachs analyst, compared the risks of crypto treasury firms to those posed by collateralized debt obligations during the 2007-08 financial crisis. Webley acknowledged the importance of managing leverage and capital discipline to avoid such pitfalls. Treasury CEO Khing Oei also expressed caution, stating that the company’s leverage strategy is designed to be lower than that of its peers.

SWC’s strategic approach, like that of Strategy, has faced scrutiny, particularly during the 2022 bear market. The firm’s decision to retain its Bitcoin holdings despite the price drop to $15,740 was criticized at the time. However, as Bitcoin rebounded to an all-time high of $124,450 in recent months, the decision has proven to be a long-term investment strategy that has inspired others to follow suit.

SWC’s vision reflects a broader industry trend where corporate treasuries are rethinking their reserve strategies in the digital age. Webley emphasized the importance of strategic patience, capital efficiency, and market insight as SWC continues to position itself as a leader in the evolving landscape of corporate Bitcoin adoption.

Source:

[1] Bitcoin Treasuries Top 1 Million BTC as Firms Boost Holdings (https://finance.yahoo.com/news/bitcoin-treasuries-top-1-million-045500397.html)

[2] Winklevoss-backed 1000 BTC Treasury to launch on ... (https://cointelegraph.com/news/winklevoss-nakamoto-bitcoin-treasury-euro-funding-euronext-reverse-listing)