It was only a matter of time before this happened.
Michael Saylor was ahead of the curve. In fact, he took that company in a completely different direction by staking its future on Bitcoin. Obviously, this is looking like something that is paying off.
No longer is he alone in the world of publicly traded companies. We are seeing more joining the party.
This is going to be the new norm. Tesla was one of the earlier movers. Microsoft is putting it to vote by its shareholders.
The list keeps growing.
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Another Publicly Traded Company Adds Bitcoin To Its Balance Sheet
Companies are starting to like the idea of having part of their reserves in Bitcoin. The exposure could be beneficial, especially if some of the numbers forecast do arrive.
For example, we are at roughly $90K on Bitcoin. If the price moves to $135K, a target that is not outlandish, we will see a 50% return. Naturally, the value in this depends upon how long it takes to get there.
Of course, this is a low target. People like Cathie Wood of Ark investments have BTC hitting $1 million by 2030.
From the present level, that would be 11x on the money.
Healthcare company Cosmos Health (NASDAQ: COSM) announced Monday it plans to add Bitcoin, the biggest digital coin by market capitalization, and Ethereum, the second biggest, to its balance sheet.
There is no word out the company plans to gain this exposure. It is possible that it could do a custody of the coins themselves. It is interesting that Ethereum was mentioned also,
Since the introduction of the Bitcoin and Ethereum ETFs, publicly traded companies have the ability to add these assets to their reserve, which are based upon the holding of the underlying coin.
One indicator is the company mentioned it was looking into allowing its customers to make payments in crypto. This means that it is looking at setting up some type of wallet system.
Digital asset Wave
We are going to see digital assets becoming more prevalent. This is something that is only going to keep growing.
It is evident the markets are ahead of Web 3.0. Even still, we are seeing progress on that end of things.
As development continues, more services will be offered. This is going to add value to the entire crypto ecosystem. In my view, a lot of this will be based upon AI.
Tokenization is taking over. We already have Blackrock and other entities tokenizing US Treasuries. There is also work on developing platforms for real world assets.
To me, we are looking at an opportunity that is going to eventually be in the hundreds of trillions of dollars. This is why filling one's bags is crucial. Having asset that can appreciate is a key to wealth building. For most of the global population, they are locked out of the existing financial system.
Crypto is the solution, something that is open to anyone with an Internet connection.