Adam Back expresses astonishment at the low number of companies adopting Saylor's approach.
UP WITH BITCOIN: Few Companies Follow Equilibrium-Shaking Lead
Cryptography maverick Adam Back finds it mind-blowing how few corporations have adopted MicroStrategy's game-changing Bitcoin strategy, as reported by U.TODAY on Google News.
Back, the CEO of Blockstream, addictedly scrolls through the X social media network, where he expressed:
According to Back, Saylor has practically been calling quarters, urging other companies to mimic his moves — he even organizes an event every year to promote this cause.
In a recent post, Back boldly posits that "Bitcoin 7" will soon dwarf the "Magnificent 7."
Meanwhile, MicroStrategy's CEO, Saylor, has been sharing his Bitcoin tracker, anticipating another big announcement imminent later this week. The company's Bitcoin reserves now trail behind just 540,000 coins following the latest acquisition announcement.
However, it seems like the corporate world has been taking a pass on that El Dorado. For instance, shareholders at tech titan Microsoft have repeatedly defied Bitcoin.
Despite MicroStrategy's stellar course with Bitcoin, the reluctance of other corporations to hitch a ride on this space mare comes down to several structural and risk-related factors that deter widespread adoption:
- Capital requirements and dilution risks: Many firms struggle with the capital needs and risks associated with consistent Bitcoin purchases, as they're likely to face shareholder dilution over time.
- Regulatory uncertainty: Bitcoin's fluid regulatory landscape, including tax treatments and securities laws, contributes to apprehension among CFOs. Few corporations want to gamble with balance-sheet volatility and legal exposure from the nascent asset class.
- Risk tolerance and governance: Boards of most corporations favor cash reserves or traditional investments over Bitcoin's volatility, as a strategic bet on Bitcoin's price appreciation outweighing corporate bond/equity costs is often too speculative.
- Supply constraints: The aggressive acquisition tactics of MicroStrategy create a synthetic supply halving, making larger-scale replication challenging as competition for limited BTC escalates.
- Market timing challenges: Starting investments in Bitcoin in 2020 when the price was significantly lower presents a much smaller barrier compared to today's near-$100k prices. Late adopters currently need higher conviction and capital, while the diminishing returns associated with Bitcoin's price remain ever-present challenges.
Though exceptions such as Japan’s Metaplanet (holding over 5,000 BTC) prove that adoption is feasible, it remains an exception due to these obstacles. Until Bitcoin achieves broader regulatory clarity and price stability, the vast majority of corporations seem destined to hold back from Saylor's all-in move.
[#MicroStrategy][#Bitcoin Adoption][#Investment Strategies][#Adam Back]
- Adam Back, the CEO of Blockstream and MicroStrategy's Bitcoin strategy advocate, has expressed that it's surprising to see few corporations following in MicroStrategy's footsteps, given Saylor's successful Bitcoin playbook.
- Back assertively claimed that "Bitcoin 7" will soon surpass the "Magnificent 7," possibly hinting at a forthcoming surge in Bitcoin adoption.
- Despite MicroStrategy's significant success with Bitcoin, other corporations have shown reluctance towards investing in Bitcoin, citing various structural and risk-related factors.
- In the corporate world, Microsoft's shareholders have repeatedly defied Bitcoin, with several deterrents such as capital requirements, regulatory uncertainty, risk tolerance, supply constraints, and market timing challenges hampering widespread adoption.
