UK Company adopts Bitcoin as treasury reserve assets

mk4

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Quote from: fillippone on October 26, 2020, 03:57:04 AM

I don't want to say that SQUARE also fall in this category, as I think 50 millions are basically pocket money for them, but I want to say that the amount invested in Bitcoin is surely less money they would have spent in a marketing campaign giving them the same exposure.

Hah. Regardless if Jack Dorsey was a bitcoin bull since forever, I personally agree and think this was also a publicity stunt by Dorsey. Since the MicroStrategy bitcoin acquisition, people on Twitter(Pierre Rochard, etc, If my memory serves me right) were pressuring Dorsey to "have more skin in the game" and actually allocate some of Square's money into bitcoin. Hence, it's safe to assume that he allocated a small amount just to gain better publicity even though it literally doesn't make sense for a growth company to be investing in "hedge" assets.

Though I guess the 50m gave them a lot of press coverage so it probably ended up being worth it? Idk. 🤷‍♂️

cryptomaniac_xxx

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Quote from: mk4 on October 24, 2020, 11:19:40 PM

Quote from: cryptomaniac_xxx on October 24, 2020, 05:24:12 AM

But you have to take into account that the company is still fairly young, just founded months ago (Aug 2020),

https://www.bloomberg.com/profile/company/1828151D:LN
https://find-and-update.company-information.service.gov.uk/company/12794676

That's why the initial capital or marketcap is that that huge to begin with. So they are just starting to established themselves and probably building the company with the help of 10% of their treasury assets in BTC.

True. I'm really not trashing them for it, I just provided facts from data I looked up. It's that just for now it seems a bit like they're riding up the hype companies are getting for buying bitcoin. Now, we'll know if they're actually bullish on bitcoin, if they continue to stack up in the future as they get more cash flow.

No problem and I don't think you're trashing them (if that is the impression you got from my reply). Maybe they are just riding the hype or the people behind are really pro-bitcoiners, Grin

. Only history will tell us if the company becomes a success and they kept on investing their increasing cash flow to BTC, let's just hope for the best.

bitbollo

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Well it's very hard to predict which new company can be interested in these kind of investments
Plus uncertain due COVID19 situation has created some troubles for cash-flow in many small-mid size company.

https://bitcointreasuries.org/ You can check this resource.
Here there is a list of all Publicly Traded Companies that have already bought bitcoin.
(We are close to 4% of total supply)

lixer

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Quote from: cryptomaniac_xxx on October 23, 2020, 05:31:47 AM

The company is Mode Global Holdings, will allocated 10% of their assets to BTC. So more institutional investors are joining the bandwagon globally, the question is who's next?

Yeah, this is good news, and this year seems to be getting better for Bitcoin as more of these companies keep on adopting it as a reserve for their assets. I don't know the motivation behind this, can it be because of recession?, but I am happy they are doing it. Many of them are talking about cryptocurrency, another good news I have been seeing is that of PayPal, like lots of changes have been this year and I'm happy about that.

Quote from: 3meek on October 26, 2020, 03:26:49 AM

This company has bought 7 bitcoins possibly on a local high... For some reason it seems to me that now bitcoin can't break through the resistance of 14K... I think what this company did was not the wisest decision!

How did you get to know that? And were you expecting the price to quickly get to $14k? Y'all are always in a rush. The price will get to that, but with time. The $13k we have this week is not what we had last week. So no need for the hurry. I knew some people were expecting the price to be very high by now, because of companies that invested in BTC this year, but it doesn't work like that.

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Quote from: AjithBtc on October 23, 2020, 09:15:29 AM

The holding in comparison to other large companies making the investment is very low, but such small scale companies participation is a must. When more small scale companies prioritise bitcoin as reserve, automatically the volume of bitcoin as reserve peaks high. This can lead to higher margin adoption which might further support in mainstream adoption.

The good news here is their adoption and they let people know about their current move about the ongoing trend which is bitcoin. If the other company in their country will follow their footstep, then the market would get us far from its current price right now. If the reserve money will get double by next year, I wonder how many companies will convert their reserve budget into bitcoins. Just like the 2017 bull run, when they see lots of people flocking to get their bitcoin, many have followed and the result created a new record of price of bitcoin.

https://cointelegraph.com/news/history-shows-bitcoin-price-may-take-3-12-months-to-finally-break-20k

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Quote from: mk4 on October 23, 2020, 05:50:38 AM

I really don't want to be the party pooper here, but if anyone is expecting a huge amount of money from this one company, then sorry to say that it's really not that much. 10% of their cash reserves are only a total of around £72200/$94,365; at least based on their June filings[1]. It's approximately a BTC7.27 at today's prices.

Not that much money, but at least the publicity is good so there's that.

dontkillmepls

[1] https://www.londonstockexchange.com/news-article/MODE/interim-results-for-the-period-ended-30-june-2020/14716173

Currently out of merits, but this is a very fair point.
Following the recent development and excitement due to the "serious" investments by Microstrategy, a few other firms publicized Bitcoin investments only as a marketing stunts.
I don't want to say that SQUARE also fall in this category, as I think 50 millions are basically pocket money for them, but I want to say that the amount invested in Bitcoin is surely less money they would have spent in a marketing campaign giving them the same exposure.

Quote from: Karartma1 on October 26, 2020, 03:31:59 AM

If you people want to keep an eye on similar news as they come forward I suggest you bookmark the following thread curated by fillippone who is taking care of keeping track of all the different publicly traded companies using bitcoin as a reserve asset.
https://bitcointalksearch.org/topic/--5280947

Thank you @Karatma1
for the above reasons, I doubt you will find this company in my list, as I decided to cut the reporting to a lower threshold of 100 BTC, chosen according to my arbitrary judgment.
Time is limited, let's concentrate on the signal and ignore the noise.

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If you people want to keep an eye on similar news as they come forward I suggest you bookmark the following thread curated by fillippone who is taking care of keeping track of all the different publicly traded companies using bitcoin as a reserve asset.
https://bitcointalksearch.org/topic/--5280947

3meek

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This company has bought 7 bitcoins possibly on a local high... For some reason it seems to me that now bitcoin can't break through the resistance of 14K... I think what this company did was not the wisest decision!

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Quote from: mk4 on October 23, 2020, 05:50:38 AM

I really don't want to be the party pooper here, but if anyone is expecting a huge amount of money from this one company, then sorry to say that it's really not that much. 10% of their cash reserves are only a total of around £72200/$94,365; at least based on their June filings[1]. It's approximately a BTC7.27 at today's prices.

Not that much money, but at least the publicity is good so there's that.

dontkillmepls

[1] https://www.londonstockexchange.com/news-article/MODE/interim-results-for-the-period-ended-30-june-2020/14716173

that's a valid point but this is better than not having them. There will be many more institution that would join the bandwagon and that is where the big news will come and we will see trillions of dollars flooding the market. We should try to look at them as a collective rather than individual.

mariah.sadio

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More and more institutionals in the game. I hope that this will help in btc mooning

mk4

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Quote from: Mpamaegbu on October 25, 2020, 12:49:25 AM

A lot of people like to chase clout and that's how the crowd mentality thing works. The invested amount may not be that huge going by the few Bitcoin it could buy at the present price but the interest shown by the company and the buzz it has generated is a good one for me. A journey of a thousand mile begins with a step. From this and other related developments we shall begin to see other companies which were skeptical about investing or hedging their funds with Bitcoin begin to do that. It's a plus for the crypto industry. The industry is the winner here.

Pretty much my thoughts. Remember back in 2017 whereas that one company just casually adds the "blockchain" buzzword to their company name and suddenly their stock prices went up? Yep.

https://www.cnbc.com/2017/12/21/long-island-iced-tea-micro-cap-adds-blockchain-to-name-and-stock-soars.html

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It's just sending a strong signal already, newly established Fintech company or even huge company and individual investors are hopping in the bandwagon which means there is demand and it will continue to go up and we might hear another one doesn't want to miss out and putting some percentage of their assets into bitcoin.

These company are obviously riding the hype and looking at the possibility that it's going to a financial rewarding investments in the future as everything is pointing to an eventual bull run in 2021 onwards. So let's see how it goes, we might ascertain that top companies are already in the crypto 'movement', a paradigm shift, so to speak.

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A lot of people like to chase clout and that's how the crowd mentality thing works. The invested amount may not be that huge going by the few Bitcoin it could buy at the present price but the interest shown by the company and the buzz it has generated is a good one for me. A journey of a thousand mile begins with a step. From this and other related developments we shall begin to see other companies which were skeptical about investing or hedging their funds with Bitcoin begin to do that. It's a plus for the crypto industry. The industry is the winner here.

mk4

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Quote from: cryptomaniac_xxx on October 24, 2020, 05:24:12 AM

But you have to take into account that the company is still fairly young, just founded months ago (Aug 2020),

https://www.bloomberg.com/profile/company/1828151D:LN
https://find-and-update.company-information.service.gov.uk/company/12794676

That's why the initial capital or marketcap is that that huge to begin with. So they are just starting to established themselves and probably building the company with the help of 10% of their treasury assets in BTC.

True. I'm really not trashing them for it, I just provided facts from data I looked up. It's that just for now it seems a bit like they're riding up the hype companies are getting for buying bitcoin. Now, we'll know if they're actually bullish on bitcoin, if they continue to stack up in the future as they get more cash flow.

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Quote from: Tytanowy Janusz on October 23, 2020, 08:04:53 AM

It seems to me that this may be the basis for the creation of a new paradigm on the basis of which the next bitcoint bubble will be based.

The next big bull run must of course have some kind of catalyst or spark to start the engine, and here we see a more than obvious example that the trend from the US has started to spill over into the UK. So even though it is a relatively small amount in question, it is much more important that companies have recognized the potential that Bitcoin has.

Quote from: Tytanowy Janusz on October 23, 2020, 08:04:53 AM

Fidelity - "It is one of the largest asset managers in the world with $3.3 trillion in assets under management as of June 2020 and a combined total customer asset value number of $8.3 trillion"

If they will apply this strategy into their portfolio than 5% from $8.3 trillion is equal to $ 415 bilion. Marketcap of Bitcoin is equal $ 240 billion. So there is not enough bitcoins only for them (at current price).

An interesting calculation, and this only shows that only one large company with a relatively small allocation of its funds would make a real boom in the crypto market. Of course, we also have that well-known story abut the number of world millionaires, which until years ago was 36 million - and if each of them wanted only 1 BTC, that would not be achievable given the limit of 21 million BTC.

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Quote from: mk4 on October 23, 2020, 10:59:58 PM

Quote from: gentlemand on October 23, 2020, 01:37:21 PM

They just did some sort of IPO and the inference is they're using the money from that, which probably did not impress the people who threw some cash at them.

I wouldn't be surprised if their investors didn't like this move to be completely honest. People invest in companies for cash flow(regardless if present or future). If I'd like to have exposure to bitcoin, I'd buy bitcoin.

Also taking note that Mode Global Holdings' total marketcap is only £41M[1] which is kinda small, if I was an investor I'd definitely heavily prefer that they focus on taking risks in growing the company rather than playing it safe and investing in a non-productive asset.

[1] https://www.londonstockexchange.com/stock/MODE/mode-global-holdings-plc/company-page

But you have to take into account that the company is still fairly young, just founded months ago (Aug 2020),

https://www.bloomberg.com/profile/company/1828151D:LN
https://find-and-update.company-information.service.gov.uk/company/12794676

That's why the initial capital or marketcap is that that huge to begin with. So they are just starting to established themselves and probably building the company with the help of 10% of their treasury assets in BTC.

mk4

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Quote from: gentlemand on October 23, 2020, 01:37:21 PM

They just did some sort of IPO and the inference is they're using the money from that, which probably did not impress the people who threw some cash at them.

I wouldn't be surprised if their investors didn't like this move to be completely honest. People invest in companies for cash flow(regardless if present or future). If I'd like to have exposure to bitcoin, I'd buy bitcoin.

Also taking note that Mode Global Holdings' total marketcap is only £41M[1] which is kinda small, if I was an investor I'd definitely heavily prefer that they focus on taking risks in growing the company rather than playing it safe and investing in a non-productive asset.

[1] https://www.londonstockexchange.com/stock/MODE/mode-global-holdings-plc/company-page

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Quote from: FinneysTrueVision on October 23, 2020, 09:18:08 PM

It's become a growing trend. They are finally starting to recognize it's potential instead of trying to fight it and downplaying it for so many years. It has proven to be superior to gold which is difficult to transact with and the US dollar which decreases it's value over time. It's been the 'blockchain not bitcoin' people who have ended up on the wrong side of history.

Time has really change, from the humble beginning of bitcoin and then institution totally shunning it away like a plague or something, brandishing it as Ponzi and used by criminals. But now, they saw the potential and every one of them is riding the bandwagon. They still have other options like stocks and gold or oil, but bitcoin is the best asset so far and no wonder some company are adopting it as treasury reserves.

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It's become a growing trend. They are finally starting to recognize it's potential instead of trying to fight it and downplaying it for so many years. It has proven to be superior to gold which is difficult to transact with and the US dollar which decreases it's value over time. It's been the 'blockchain not bitcoin' people who have ended up on the wrong side of history.

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Quote from: mk4 on October 23, 2020, 05:50:38 AM

I really don't want to be the party pooper here, but if anyone is expecting a huge amount of money from this one company, then sorry to say that it's really not that much. 10% of their cash reserves are only a total of around £72200/$94,365; at least based on their June filings[1]. It's approximately a BTC7.27 at today's prices.

It's mostly symbolic but it's also another sign of Bitcoin being increasingly recognized as digital gold, it's less of a hyperbole to refer to it as such nowadays.

Quote from: gentlemand on October 23, 2020, 06:11:23 PM

This will definitely be a factor that didn't exist before and we'd be naive to discount it. Company money arriving now may well feel like a total genius for the next 12-18 months. What happens after is the decider. I see no reason why most wouldn't be headless chickens just like everyone else.

At least most will have arrived via OTC and will depart the same way even if it does add up overall.

Considering the fact that there's more friction involved compared to regular exchanges, there at least might be less thoughtless panic selling contributing to volatility.

Topic: UK Company adopts Bitcoin as treasury reserve assets (Read 472 times)