Kalam Cypto #137: Corporate Bitcoin Adoption Accelerating

“Work hard in silence. Let success be your noise.”

Ahlan wa sahlan, and welcome to the 137th edition of CoinMENA’s weekly newsletter, Kalam Crypto! This week, traditional finance giant Cantor Fitzgerald deepens its crypto ties with a stake in Tether and plans for a Bitcoin-backed lending program. USDT on Ethereum reclaims dominance, flipping Tron, MicroStrategy accelerates its Bitcoin purchases, and several other corporates announce significant Bitcoin acquisitions. All this and more in this week's edition of Kalam Crypto!

Global News 🌍

Cantor Fitzgerald has acquired a 5% stake in Tether: Cantor Fitzgerald has deepened its involvement in the cryptocurrency sector by acquiring a 5% stake in Tether, the issuer of USDT, in a deal valued at up to $600 million. The two firms are also exploring a $2 billion Bitcoin lending program, where Cantor Fitzgerald would provide dollar loans secured by Bitcoin collateral. Additionally, Cantor acts as a custodian for the U.S. Treasurys backing USDT. This expanding partnership coincides with CEO Howard Lutnick’s nomination as U.S. Secretary of Commerce, potentially hinting at broader implications for the crypto industry.

USDT on Ethereum Flips Tron: Ethereum has regained its dominance in USDT supply, hosting 66.94 billion USDT compared to Tron’s 61.77 billion, marking the first time since June 2022 that Ethereum has surpassed Tron. Year-to-date, USDT supply on Ethereum has grown by nearly 62%, outpacing Tron’s 24.4% increase. This shift follows a recent surge in USDT minting activity.

Keep an Eye On 👀

In this section, we explore the growing trend of corporations adopting Bitcoin as a treasury reserve asset. From MicroStrategy’s pioneering efforts to the latest announcements by other notable companies, here’s what’s happening:

MicroStrategy Leads the Pack: MicroStrategy has solidified its status as a Bitcoin powerhouse and is now among the top 100 U.S. public companies by market cap. The company holds 386,700 BTC, acquired for approximately $21.9 billion at an average price of $56,761 per Bitcoin. Its latest purchase of 55,500 BTC for $5.4 billion at an average price of $97,862 per Bitcoin has contributed to a BTC yield of 35.2% quarter-to-date (QTD) and 59.3% year-to-date (YTD). Remarkably, MicroStrategy's shares have surged over 500% in 2024 and gained 2,739% over five years, outperforming even NVIDIA’s 2,688% growth. This impressive journey began in August 2020 when the company first adopted Bitcoin as a treasury asset, during which Bitcoin itself has risen over 100%.

Corporates Following MicroStrategy’s Lead

Building on MicroStrategy’s success, several companies are now deepening their Bitcoin strategies:

MARA Holdings: MARA Holdings has adopted a bold Bitcoin strategy, issuing long-term dollar-based debt to expand its holdings. Through its 0% convertible note offering, the company has acquired 5,771 BTC at an average price of $95,554 per Bitcoin, bringing its total holdings to 33,875 BTC valued at $3.4 billion at a spot price of $99,000. This approach has delivered an impressive 35% BTC yield per share.

Semler Scientific: Semler Scientific has entered the Bitcoin arena, acquiring 297 BTC for approximately $29.1 million at an average price of $97,995 per Bitcoin. The company has achieved a BTC yield of 37.4% QTD and 58.4% YTD. As of November 24, 2024, Semler holds 1,570 BTC, purchased for a total of $117.8 million at an average price of $75,039 per Bitcoin.

Rumble Joins the Movement: Rumble, a $2 billion video-sharing and cloud services platform, is the latest high-profile company to announce its intention to buy Bitcoin. The company plans to allocate up to $20 million of its cash reserves to the cryptocurrency. CEO Chris Pavlovski highlighted Bitcoin's resistance to monetary dilution and its value as a long-term asset, underscoring Rumble’s commitment to connecting with the crypto and gaming communities.

From seasoned Bitcoin adopters like MicroStrategy, MARA Holdings, and Semler Scientific to Rumble’s newly announced plans, it’s clear that Bitcoin is becoming a cornerstone of corporate treasury strategies. The trend is gaining momentum, and we’ll be closely monitoring how it evolves.

Tweet Of The Week 🐥

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CoinMENA News 🗞️

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Quiz Corner ✅ 

Last week’s question: Bitcoin recently became the 7th largest global asset by market cap. Which asset is next in line for Bitcoin to overtake? The Correct answer is A) Google

This week’s question is, What is Bitcoin’s maximum supply limit?

A) 10 million

B) 21 million

C) 50 million

D) Unlimited

See the answer in next week’s newsletter. Or check out our learning platform https://university.coinmena.com/