Analysts at investment firm Bernstein predict that the corporate sector will invest over $330 billion in Bitcoin by 2029. According to the research, a key player in this process will be Strategy, formerly known as MicroStrategy, which was the first to make Bitcoin a core component of its reserves.
This is reported by Business • Media
Forecast and Impact of Strategy
Bernstein experts note that “small companies with low growth rates but large cash reserves are the best fit for the MSTR model. They do not see clear paths to creating value, and the example of Strategy opens a rare opportunity for growth.” Strategy, listed on the Nasdaq stock exchange, began acquiring the first cryptocurrency in 2020 in response to the economic uncertainty caused by the COVID-19 pandemic. To date, the company holds 555,450 BTC, worth approximately $52.5 billion.
Growing Interest in Bitcoin
In addition to Strategy, Semler Scientific recently acquired 167 BTC for $16.2 million. Notably,
“$SMLR acquires 167 #Bitcoins for $16.2 million and has generated BTC Yield of 22.2% YTD. Now holding 3,634 $BTC and is now the fourth largest Bitcoin Treasury Company in the U.S.”
— Eric Semler wrote on Twitter. Bernstein experts emphasize that not every company will be able to replicate Strategy’s success, as profitability largely depends on the volatility of Bitcoin’s price. However, interest in Bitcoin as a hedge against inflation and an alternative to holding cash remains high. For example, Japanese company Metaplanet recently announced its intention to accumulate Bitcoin on its balance sheet.
At the time of this report, the price of Bitcoin was around $94,550. It is also worth noting that European company The Blockchain Group announced plans to acquire 260,000 BTC over the next 10 years.
Daily chart of BTC/USDT on the Binance exchange. Source: TradingView.