According to a new report, companies’ Bitcoin acquisitions are growing, with over 61 different companies buying CryptoAssets. The steady profits of Bitcoin make this strategy look very appealing.
Still, there are risks inherent to both these companies and Web3. Many companies are pivoting from older models to BTC-first strategies, but selling these assets can completely collapse.
Is corporate Bitcoin acquisition bullish?
With Bitcoin growing consistently, corporate acquisitions are entrenched around the world. MicroStrategy was leading the bill years ago, but businesses on all continents have pivoted and made a big commitment to BTC. Fortune claims that at least 61 different companies have joined the trend, revealing the depth of their recent success.
“The whole world doesn’t know what’s going on, and they’re looking for a big shock. This is a one-way train and there’s nothing to stop it,” claims Dylan Leclair, director of Bitcoin Strategy at Metaplanet. Metaplanet is a major representative of this international movement.
Still, this trend in corporate Bitcoin acquisitions can have serious drawbacks. Certainly, BTC prices are rising and could soon reach an all-time high. Additionally, it shows less volatility than usual over the past few months. To be clear, these are all very good signs.
Nevertheless, it is important to remember that most of these companies are not Web3-Native. The crypto industry is prone to wild fluctuations and cyclical crashes, but knowledgeable investors can mitigate these risks.
Many of these new Bitcoin buyers are estranged from their failed business models without knowing Crypto’s own pitfalls.
As MicroStrategy clearly demonstrates, companies that acquire these Bitcoin cannot necessarily dispose of them. If these standard personnel to BTC start selling, it could cause a market run.
Can all 61 of these companies plan to hold Bitcoin forever? Will future market disruptions force liquidation and wipe them out?
Furthermore, these trends in companies’ acquisition of Bitcoin promote the fear of “decentralization.” ETF publishers already own more BTC than Satoshi and buy more every day.
If private companies buy and keep Bitcoin, it can disrupt the pillars of the defi economy. After all, the supply of 21 million BTC is limited.
That’s not to say that this Bitcoin acquisition pattern is a bad thing. Perhaps they are at least partially responsible for volatility and consistent profits over the past few months.
This surprising trend can be a major opportunity for cryptography, but it’s not a clear good. The community needs to be ready for anything.
Disclaimer
In compliance with Trust Project guidelines, Beincrypto is committed to reporting without bias and transparent. This news article is intended to provide accurate and timely information. However, we recommend that readers independently verify the facts and consult with experts before making decisions based on this content. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
