This 1 Catalyst could send Bitcoin to poppace, according to silicon billionaire valleys Tim Draper

These days seem to be trying to buy bitcoin (Btc 0.93%) – Individuals, Wall Street banks, institutional investors, and even the American government. But until recently, corporations did not enter the act. Only a relatively small number of public trading companies are held at the moment Bitcoin on their balance sheets.

But that could change. According to the billionaire Silicon Valley Venture Capitalistic Team Draper, Corporations must start buying Bitcoin. If American public trading decides to go to Bitcoin, it could send the most popular cryptocurrency in the world to increase new all weather high heights.

Strategy to buy bitcoin

Corporations start following playbook created Microstrategi (Mstr 0.74%)The company now operates as a strategy. This book primarily consists of one play: Purchase Bitcoin. The strategy now has a stunning amount of bitcoin – 568,840 coins and counting. It seems almost every week the strategy reports the main purchase of more bitcoin. His current Bitcoin stock is valued at almost $ 60 billion.

In 2024. years, a number of public traded companies began to enroll in the toes in the Bitcoin Water. In some cases, they were not even connected to the Block Cain or Cript, so it raised several eyebrows. But these were relatively small companies and it was possible to ignore all chatting about American companies that buy Bitcoin.

Image source: Getty Images.

But then it came December 2024. And the proposal of the first sign of shareholders voted at Tech Titan Microsoft (MSFT 0.17%). Simply put, the proposal called on Microsoft to start adding bitcoins to the balance sheet, all in the name of the shareholders of the structure. Michael Sailor, founder and executive President of the Strategy, even gave a short three-mine presentation to Microsoft’s shareholders, showing them how much money they dispose of not buying Bitcoin.

Is “irresponsible” not to buy Bitcoin?

The Microsoft Bitcoin proposal eventually failed, but it was supposed to be a big call for awakening corporate america. The proposal was combined with a wild beech look for Bitcoin with a fairly constant concept The value of shareholders. The proposal was basically the case that the purchase of Bitcoin was a responsible thing. If corporations do not buy Bitcoin, thinking goes, I can’t maximize the value of the job.

Flash forward to this day, and Tim Draper now claims “irresponsible” for corporations not to buy Bitcoin. Speaking on Financial times The digital property summit, has delivered the case of Bitcoin’s purchase and especially noticed that companies without bitcoin do not serve the interests of shareholders. While seeing it, Bitcoin can help build shareholders. As corporations keep cash and cash equivalent, they should also hold Bitcoin.

This notion of irresponsibility is very important. It led to corporations that were released from certain regions of the world or refused to invest in certain types of companies. She led to a corporate hug ESG (Environmental Protection Initiatives, Social and Management) and fully describes them in their presentation materials to shareholders. What if corporations now decide to deal with Bitcoin in the same way?

Influence of prices on bitcoin

Things get very interesting when you start considering a potential influence at the future price of Bitcoin. Investment company Bernstein recently launched numbers and calculated that public traded corporations could add up to $ 330 billion in Bitcoin in their combined balance sheets in the next five years.

Given a total cap in Bitcoin of $ 2 Trillion, it’s a lot of shopping and would almost certainly send the price of Bitcoin Jump. According to Draper, Bitcoin will be $ 250,000 by the end of 2025, and one catalyst will be corporations that buy bitcoin size.

What could be wrong?

The problem is that the bitcoin adding strategy in the balance is only if the price of bitcoin is still going up. If the price of Bitcoin falls, corporations will actually reduce, not maximizing, the value of shareholders by purchasing bitcoin. Every quarter, they will need to write the value of their Bitcoin estate, which will lead to losses that will come out of share capital.

Unfortunately, we’ve seen this story before. At the beginning of 2021. years, Elon’s musk and Tesla (NASDAK: TSLA) He set headlines around the world with a decision that Bitcoin would buy $ 1.5 billion. It looked like a genius move, and the price of bitcoin was a hall in a record high.

However, only a few months later, Tesla began to enter the idea of ​​customers who pay their cars in Bitcoin. Then, after the Bitcoin Criered 2022 price. Tesla was no longer talking about Bitcoin’s purchase. In fact, in July 2022. he sold 75% of his Bitcoin estates.

The lesson was clear: Bitcoin is simply too unstable to keep a lot on the balance sheet. I’m not saying this scenario will not happen again. But I also don’t say it won’t.

Certainly, if you are the Bitcoin Investor, it is exciting that the Corporate America will begin to burden into Bitcoin. That would almost certainly send the price of Bitcoin more. The big question, however, will happen if the price of Bitcoin stopped.