To The Moon

Finally.

After approximately 2 years and 3 months, Bitcoin finally recovered its lost grounds.

On 14 Mar 2024, it even broke through it past peak and conquered a new high, touching $72,227.

It has since come off its new peak - still at a enviable $66 466.30 per bitcoin, as of 22 Mar 2024 3:00pm Singapore time.

Two questions on my mind really:

• Will Bitcoin remain elevated at this price range or will it scale even higher come April’s halving exercise?

• Are companies holding Bitcoin at an advantage or at risk?

It’s a mistake !

All along I had assumed that only Tesla have benefitted from Bitcoin.

It was only until I researched on this topic that I realized my oversight. (see below)

Bitcoin - world’s largest corporate holders.

Above are top publicly traded companies that hold the most Bitcoins. (see above)

The Top 5 are:

• $MicroStrategy(MSTR)$ - This business intelligence firm has been a vocal advocate for Bitcoin and holds a significant amount on its balance sheet.

• Galaxy Digital - A cryptocurrency investment firm, Galaxy Digital likely holds Bitcoin as part of their investment strategy.

• $Marathon Digital Holdings Inc(MARA)$. A Bitcoin mining company, holding a large quantity of Bitcoin they have mined.

• $Tesla Motors(TSLA)$. Although Mr musk sold some holdings in 2022, Tesla is still considered a major holder.

• $Hut 8 Mining Corp(HUT)$. Another mining company.

With cryptocurrency being inherently volatile, any rise and fall of Bitcoin's price will definitely have an impact on these companies, especially the top 5 companies.

Companies benefit from higher Bitcoin:

• MicroStrategy (MSTR): As a strong Bitcoin advocate holding a large amount, a price increase translates to significant unrealized gains on their balance sheet. This could boost investor confidence in MicroStrategy's Bitcoin strategy.

• Marathon Digital Holdings (MARA): Bitcoin miners like Marathon earn rewards in Bitcoin. A higher price per Bitcoin translates to a higher profit margin on their mining operations.

Companies impacted negatively:

• Tesla (TSLA): While they still hold Bitcoin, a price drop could lead to unrealized losses on their balance sheet. However, the impact might be mitigated by the fact that they only sold a portion in 2022.

Companies with neutral impact:

• $Coinbase Global, Inc.(COIN)$: As a cryptocurrency exchange, Coinbase's revenue is tied to trading volume than more than the price itself. However, sustained price increase could attract more users and trading activity, benefiting Coinbase.

• Galaxy Digital (TSE: GLXY): Similar to Coinbase, Galaxy Digital's performance might be more correlated with overall market sentiment than just the price of Bitcoin. However, a significant price drop could potentially impact the value of their Bitcoin holdings.

My viewpoints: (mine & mine only)

• When it comes to investing, it is always a balancing act of whether to hold long term or take profit where necessary.

• With Bitcoin at an elevated price, do you want to take profit ahead of Bitcoin halving exercise that is deemed to take place on 15 Apr 2024 ?

• Or do you believe in historical event where during an earlier halving in July 2016. Bitcoin rose around +1.3% in the following week, before plunging a few weeks later.

Do you want to risk it ?

Must Read: Click on below titles to access. Give a like & help to repost ok. Thanks.

• GOOG leads in AI race, not MSFT !

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• Do you think Bitcoin will rise higher after Halving exercise?

• Do you think you will want to take profit before that?

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