Bitcoin Treasury Companies: The New Power in the Financial System!

Bitcoin Treasury Companies: The New Power in the Financial System!

The importance of Bitcoin as an investment is receiving increasing attention. Experts discuss the role of Bitcoin treasuries in the global financial system, which could become crucial in the coming decades. it-boltwise.de reports that companies are increasingly recognizing the advantages of Bitcoin and are increasingly turning away from fiat currencies. Jesse Myers, head of Bitcoin strategy at Moon Inc., warns against underestimating the future importance of these treasuries. He estimates that they could hold up to 50% of all Bitcoins by 2045.

An example of this trend is Michael Saylor's company MicroStrategy, which currently holds 576,320 Bitcoins worth around $62.24 billion. Saylor predicts that Bitcoin's value could rise to $70 trillion by 2045, which would make MicroStrategy the most valuable company in history. Bitcoin currently accounts for just 0.2% of global wealth, but this share could change as capital increasingly looks for stable investments.

Capital flows and market changes

Over the past two years, many investors have shifted their fiat assets into robust assets like Bitcoin and gold. There are approximately $318 trillion in bonds globally looking for better investment opportunities. Bitcoin treasuries could play a crucial role in redistributing this capital toward digital assets.

A recent example of the creation of new Bitcoin treasury companies is the April 24 launch of Twenty One Capital, a company led by Jack Mallers and backed by Tether, SoftBank and Cantor Fitzgerald. The company aims to be the preferred choice for investors seeking capital-efficient Bitcoin exposure.

Additionally, on May 1, the Japanese company Metaplanet announced the establishment of a subsidiary in the United States to accumulate Bitcoin. According to data from Bitbo, publicly traded and private companies and nation states collectively hold 3.23 million Bitcoins, worth about $348.25 billion. This development shows that Bitcoin is increasingly being perceived as a serious asset class.

Future forecasts

Michael Saylor, the executive chairman of MicroStrategy, expressed optimistic predictions about the price development of Bitcoin. He spoke at the Bitcoin 2024 conference in Nashville and estimated that the price of Bitcoin could rise to $13 million by 2045 in his base case, which would be about 7% of global wealth. The current Bitcoin price is around $65,000 and the market capitalization is $1.3 trillion.

To reach this projected price level, Bitcoin would need to generate a 29% annual return. In a bullish scenario, Bitcoin could even reach $49 million and represent 22% of global wealth, while a pessimistic scenario predicts a value of $3 million and 2% of global wealth. Under Saylor's leadership, MicroStrategy has accumulated 226,331 bitcoins over four years, currently valued at about $15 billion, about 80% above the total purchase price.

The role of Bitcoin treasuries could not only have a lasting impact on the market for digital assets, but also change the entire dynamics of the global financial system as more and more capital flows into this form of investment.