Bitcoin's 2021 Institutional Takeover
Metaplanet Utilizes $15 Million in Bond Sales to Further Boost Bitcoin Purchases
Looks like we're witnessing a major sea change in the Bitcoin world this year, with big-time players stepping up their game. Japanese firm Metaplanet, for instance, just announced a bold $15 million bond issuance, earmarked entirely for snatching up Bitcoin (BTC).
These bonds, carrying a cool 0% interest rate and due on November 12, are priced at $375,000 apiece. If Metaplanet manages to raise the full amount, they could lay their hands on roughly 147 BTC at current prices. This move follows their acquisition of 1,241 Bitcoin yesterday, bringing their total holdings to 6,796 BTC.
Their strategy aligns with a broader trend in 2021: the shift from individual investors to institutions and governments. According to data from River, businesses are now leading the Bitcoin buying charge, even outpacing governments and exchange-traded funds (ETFs).
Take MicroStrategy, for instance, a company that's been spearheading this Bitcoin buying spree. On May 12, they announced they'd added 13,390 BTC to their coffers at a cost of $1.34 billion. That's right, 13K Bitcoin! Their total holdings now amount to a staggering 568,840 BTC, acquired at an average cost of $69,287 per coin.
But not everyone's enthralled by this approach. Economist and Bitcoin critic Peter Schiff sounded a cautionary note on Twitter, warning that the average cost of MicroStrategy's holdings might surge above $70,000. He was quick to remind us that if Bitcoin's price drops, it could leave MicroStrategy's average purchase price in the dust. Since they borrowed money to fund these acquisitions, a price drop could prove problematic.
This warning comes as Bitcoin's price dipped following a brief pump on May 12, when the US and China agreed on a 90-day tariff deal. Despite this, analysts remain optimistic that the current rally still has room to grow and could propel BTC to all-time highs.
Remember, this content is based on publicly available data and intended to provide an overview, not financial advice. Always verify facts independently and consult with a professional before making any investment decisions.
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Stay informed and keep riding the Bitcoin wave!
- Institutional players are increasingly adopting crypto, as evident by Metaplanet's $15 million bond issuance to purchase Bitcoin.
- In 2021, the trend in finance is shifting from individual investors to institutions and governments when it comes to Bitcoin investing.
- Trade platforms like TonTrader, dYdX, Arkham, BingX, and HTX may offer opportunities for individuals to participate in the cryptocurrency trading market.
- Despite some cautions and dips, analysts remain optimistic about the potential for Bitcoin's price to continue growing and reach all-time highs due to institutional adoption and technology advancements in the crypto space.
