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Why MicroStrategy’s announcement of their #Bitcoin 
https://abs.twimg.com/hashflags... draggable="false" alt=""> holdings & subsequent increase in stock price will lead to #BTC https://abs.twimg.com/hashflags... draggable="false" alt=""> going to $100,000 by end of 1Q2021
A THREADhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
A THREAD
After MicroStrategy announced $250M #BTC https://abs.twimg.com/hashflags... draggable="false" alt=""> holdings and got a 15-20% pop in share price, it would be irresponsible of every other CEO/board of publicly traded companies to not have a discussion about holding BTC on their balance sheet.
They have a responsibility to shareholders.
They have a responsibility to shareholders.
Irregardless of whether the CEOs or boards understand #Bitcoin https://abs.twimg.com/hashflags... draggable="false" alt="">, they must evaluate whether holding it as an asset would ultimately unlock value for their shareholders (hint: it would).
By holding BTC on their balance sheet, they would recognize the following benefits:
By holding BTC on their balance sheet, they would recognize the following benefits:
1. Reduce cash holdings to preserve the power of their capital
2. Attract new investors who would see exposure to BTC as a positive
3. Hedge against currency risk
4. Gain upside in asset value/book value due to #BTChttps://abs.twimg.com/hashflags... draggable="false" alt=""> price appreciation.
2. Attract new investors who would see exposure to BTC as a positive
3. Hedge against currency risk
4. Gain upside in asset value/book value due to #BTC
As of the end of 1Q2020, there are 4 companies with $100B+ cash on their balance sheet:
Microsoft ($137B)
Berkshire Hathaway ($128B)
Alphabet ($121B)
Apple ($106B)
Combined between these four companies alone, they have amassed nearly a half trillion dollars in cash.
Microsoft ($137B)
Berkshire Hathaway ($128B)
Alphabet ($121B)
Apple ($106B)
Combined between these four companies alone, they have amassed nearly a half trillion dollars in cash.
After shareholders begin putting pressure on these companies to allocate a portion of their holdings in #BTC https://abs.twimg.com/hashflags... draggable="false" alt=""> (because it’s the right thing to do to maximize shareholder value and minimize risk), these companies will be forced to follow in MicroStrategy’s footsteps.
Assuming that they choose to allocate 2% of their cash holdings to #BTC https://abs.twimg.com/hashflags... draggable="false" alt="">, these 4 companies alone would need to buy $10B worth (~800,000 BTC at current price).
In case you’ve been under a rock, post-halving production is only ~900 newly minted Bitcoin per day.
Do the math..
In case you’ve been under a rock, post-halving production is only ~900 newly minted Bitcoin per day.
Do the math..
These four companies alone would swallow up the entire new supply of Bitcoin for nearly 3 years in order to meet their asset allocation goals. There simply isn’t enough Bitcoin available for even these four companies to acquire what they will need/want. So...what happens?
As private and public companies start scrambling in response to MicroStrategy’s groundbreaking decision, the demand for corporate Bitcoin buying will surge in the next 3-6 months (after meetings/decisions/votes/board approvals/etc). The large demand will drive pricing up https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">
If price went to $100,000 per BTC...there would be $90M worth of new Bitcoin available on the market per day. Think $90M can’t get purchased daily? These top 4 companies would still need an entire quarter of buying every single newly minted BTC just to have a 2% allocation.
It is estimated that non-financial institutions have $4T+ in cash total. When the buying starts and execs start to realize that if they’re late to this party it is going get very expensive, it will create a domino effect of buyers. Just 1% of the $4T in corporate cash =$400B
I estimate that by end of 1Q2021, we will begin to see this trend come to fruition and MS will have paved the way for the future. I see a small percentage of companies being quick on the draw here, but even a small % of the corporate cash out there is measured with a $B.
This newfound source of demand, coupled with the recent halving limiting new supply, in conjunction with public global awareness and adoption of blockchain tech will provide the catalyst for #Bitcoin https://abs.twimg.com/hashflags... draggable="false" alt=""> to reach an ATH easily in 2020 and hit $100K by end of 1Q2021.
#BuyBTC
#BuyBTC
