Analyst: The trend of companies adding Bitcoin to their balance sheet may continue until 2025

BlockBeats News, December 27, Wintermute analyst stated that the trend of companies adding Bitcoin to their balance sheets may continue until 2025.

Wintermute OTC trader Jake Ostrovskis said in an interview: "I believe that next year this trend will become a significant driver, especially with institutional investors entering the scene, and companies also starting to get involved, especially those public companies seeking Bitcoin exposure, and you may also see small and medium-sized enterprises (SMEs) joining in."

In recent years, MicroStrategy has already purchased $27.7 billion worth of Bitcoin and plans to buy several more billion dollars.

Ostrovskis pointed out that Bitcoin mining companies Mara and Riot are examples following MicroStrategy's lead, issuing convertible notes to purchase more Bitcoin. Earlier this week, Metaplanet announced plans to raise $31.8 million through a bond issuance to accelerate Bitcoin purchases.

The core idea behind these moves is that they can boost the company's balance sheet while driving up the stock price. This can be referred to as the MicroStrategy strategy.

He stated: "Currently, people are discussing the impact of ETFs. What is really driving this is that now you can get U.S. pension funds and sovereign wealth funds to put in cash. But in reality, there is also a large pool of capital coming from companies, which have relatively stronger liquidity, and may be faster than waiting for pension funds to enter the Bitcoin ETF purchase."

Ostrovskis also mentioned that traditional hedge funds have been waiting for ETFs to provide access to cryptocurrencies, and now they are acting quickly because they see opportunities in the market. (The Block)