Corporate adoption of Bitcoin is on the rise as technology companies such as KULR Technology Group Inc., Hut 8 Corp., MARA Holdings Inc., Rumble Inc. and MicroStrategy Accept Bitcoin Vaults.
In addition, Bitwise and Strive have reported new exchange-traded funds (ETFs) in view of the rising trend.
What Makes Bitcoin Adoption the Current “IT Strategy”
American energy management platform, KULR Technology Group Inc. launched its Bitcoin Treasury. The company acquired 217.18 BTC at an average price of $96,556.53 per BTC coin.
KULR has invested a total of about $21 million in Bitcoin adoption. KULR plans to allocate up to 90% of its additional money in BTC.
The company decided to use Coinbase Prime for its own wallet for its acquired BTC coins.
Hut 8 Corp. announced Bitcoin adoption of 990 BTC coins. The company is one of the largest Bitcoin miners in North America. He invested $100 million to buy Bitcoins, with the average price of each Bitcoin being approximately $101,710.
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After the acquisition of BTC coins, Hut 8 Corp. he now has a total of 10,096 Bitcoins in his reserve. As of December 18, their market value is more than one billion dollars. According to sources, the company believes its adoption of Bitcoin positions it among the top ten corporate holders of BTC in the world.
Mara Holdings Inc., a Bitcoin mining company has increased its Bitcoin acquisition to 40,435 BTC coins worth $3.9 billion. Additionally, the company invested $1.1 billion and acquired 11,774 Bitcoins. According to Bitcoin news sources, the company acquired these many BTC coins through a zero-coupon convertible note offering. The bids included an average BTC price of $96,000. Mara Holdings Inc. has a Bitcoin Yield of 47.6%.
Rumble Inc. announced on November 25 that it would allocate its excess cash to corporate Bitcoin reserves by investing $20 million. The president and CEO of the video-sharing platform believes the world is in the early stages of Bitcoin adoption. So the team is excited to integrate crypto and become the leading platform that delivers video and cloud services to the crypto community.
Bitwise and Strive launch new ETFs
Bitwise plans to launch a “Bitcoin Standard Corporations ETF”, in which it will invest in companies with more than 1,000 BTC holdings. In addition, these companies need to meet basic liquidity and size requirements.
These companies must also have a market capitalization of more than $100 million with a public free float below 10%. Their average liquidity should be above one million dollars on a daily basis.
Strive plans to employ a unique “Bitcoin Bond ETF”. The company will target companies that have invested heavily in BTC bonds.
It will use its ETF to invest in convertible securities of other companies, such as Microstrategy.
Wintermute analyst forecast
According to Wintermute analyst Jake Ostrovskis, the year 2025 will see an increase in the adoption of Bitcoin by many companies. Ostrovskis expects that corporations and institutions, including small and medium-sized enterprises (SMEs), will create a BTC treasury. he said
“It’s probably only a matter of time before the company transforms into an Ethereum investment vehicle, becoming a micro-strategy of that space.”
Ostrovskis noted that Bitcoin adoption complements BTC ETFs. He believes that businesses will adopt faster because they have flexible capital compared to institutional investors.
Is it the FOMO effect?
MicroStrategy is a pioneer in corporate adoption of Bitcoin. It has acquired $10 billion worth of BTC coins and plans to use the equity financing for another $42 billion in bitcoins.
The company has potentially developed a fear of leakage among corporations and institutions. Therefore, companies like Rumble Inc., KULR Technology Group Inc., and MARA Holdings Inc. are adopting BTC vaults.
In addition, Riot Platforms (RIOT) and Marathon Digital (MARA) are also following the trend by issuing convertible notes to manage additional Bitcoin holdings.
