Kraken’s 2021 crypto outlook: 50% of top 500 companies will hold Bitcoin

Spread the love

In Kraken’s 2021 crypto outlook presentation, the crypto analyst estimated that 50% of the top 500 companies in the world would hold Bitcoin in their portfolios by the end of 2021.
Well-known crypto strategist, Kraken’s Pierre Rochard, recently explained why Bitcoin will see an explosion of corporate interest in 2021.
“My boldest prediction is that if we take the S&P 500, the world’s largest corporations, I think that by the end of 2021, more than half of them will have Bitcoin on their balance sheet, and I think that will be driven by simple economics, which is that issuing shares to buy Bitcoin causes your stock price to go up more than the dilution.
“And so because that is the case – we have market data showing this – we’re going to see a huge amount of corporate adoption of Bitcoin, and we’ll even see like what [MicroStrategy CEO] Michael Saylor is doing, corporations issuing large quantities of bonds, fixed-income instruments – whether they’re convertible or whatever – in order to just bulk buy Bitcoin.”
The crypto strategist’s prediction looks to be already playing out, as business intelligence company, MicroStrategy, has of late been in a buying spree of Bitcoins, coupled with leading payments giant Square’s massive Bitcoin purchase some months ago.
Recall that some months back, Nairametrics revealed how a publicly traded firm, MicroStrategy based in the world’s largest economy, purchased Bitcoin as a treasury reserve asset to hedge against inflation. This is a big deal, as Bitcoin is being used as intended – a hard money/savings instrument.
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said Michael J. Saylor, CEO, MicroStrategy Incorporated.
“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” he stated.
It is critical to note that as global financial regulators start to implement their regulatory framework, supporting cryptos such as Bitcoin, it becomes a matter of months for global brands to rise their buying pressures on Bitcoin. The present price surely seems like a discount when considering such variables.

Leave a Reply

Your email address will not be published.