Who will be MENA’s first MicroStrategy?
In the ever-evolving landscape of corporate finance, a growing number of publicly listed companies are turning to Bitcoin as a strategic asset, and the results are nothing short of remarkable.
In the ever-evolving landscape of corporate finance, a growing number of publicly listed companies are turning to Bitcoin as a strategic asset, and the results are nothing short of remarkable.
This trend was pioneered by MicroStrategy back in August 2020. Under the visionary leadership of Michael Saylor, MicroStrategy allocated its cash reserves into Bitcoin, taking advantage of their status as a listed company to access favorable loan rates. This allowed them to borrow below market prices, effectively short the dollar, and go long on Bitcoin. Every few months, Saylor shares updates like this: "MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash at ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at an average price of $36,798 per bitcoin." Since adopting the Bitcoin standard, MicroStrategy's share price has surged by an astonishing 900%.
Other listed companies in the U.S. are following suit. Semler Scientific, a medical technology company, has also embraced Bitcoin, and their share price has increased by over 50% in the last month alone.
Importantly, this is not just a U.S. phenomenon. In fact, the strategy can be even more effective in countries experiencing rapid currency devaluation. Take Metaplanet, a Tokyo-listed investment firm, for example. In response to Japan's significant economic challenges, including high government debt levels and a weakening yen, Metaplanet adopted Bitcoin as its primary treasury reserve asset in May 2024. They have since been announcing regular periodic purchases, much like MicroStrategy. Recently, @Metaplanet_JP tweeted: "We have purchased an additional ~20.20 #bitcoin for ¥200 million at an average price of ¥9,903,441 per $BTC. As of July 1, Metaplanet holds ~161.27 bitcoin acquired an average price of ¥10,231,438 per $BTC." Since adopting Bitcoin, Metaplanet's stock has increased by over 100%.
The question now is: who will be the first MENA-listed company to adopt this Bitcoin strategy? This is game theory at the highest level.
