Analysts warn of a “new wave” in corporate adoption, as companies approve Bitcoin reserves.
KULR Technology Group has given its support to Bitcoin’s 2025 price predictions by becoming the first corporation to adopt 2025. On January 6, a purchase of $21 million BTC was made.
The purchase is a double of the one made two weeks earlier, which brought their total to 430 BTC.
Pseudonymous analyst Medivh thinks this trend will gain momentum due to the growing “Bitcoin FMO”. He cited several corporations that have approved plans for Bitcoin adoption but are yet to implement them.
Who is driving the “Next Wave” of Bitcoin Adoption in 2019?
As of January 7, several publicly traded companies announced a Bitcoin Treasury Strategy, even though they had not yet acquired any Bitcoin.
Acurx Pharmaceuticals (listed on Nasdaq) approved a $1,000,000 Bitcoin purchase on 20 November 2024. Hoth Therapeutics also listed on Nasdaq, approved the exact same amount the same day.
NYSE-listed SOS Limited took a more aggressive approach by approving a Bitcoin Reserve of up to 50 million dollars on November 27, 2024.
LQR house (YHC), a Nasdaq listed company, approved a $1,000,000 Bitcoin treasury for November 20, 2024. The company also announced that they accept cryptocurrency payments and will retain up to 10 million dollars of these payments as Bitcoin.
What is causing corporations to experience ‘Bitcoin FMO’?
In 2024, Bitcoin will be a major corporate asset. MicroStrategy adopted BTC in 2020 as a treasury. MicroStrategy (MSTR), since then, has seen its share price soar by nearly 2,500%.
Metaplanet (3350), Semler Scientific(SMLR), MARA Holdings(MARA) and other publicly traded mining companies followed suit, enjoying significant success.
This is cited by Trader Medivh as “a key factor that drives other companies to adopt a similar approach.”
It is worth noting that the share prices of Acurx Pharmaceuticals, Hoth Therapeutics, and SOS Limited have all fallen since November 19, 2024.
LQR House’s (YHC) share price has risen 56% since it was the first company to implement a crypto payment policy.
These outcomes are not solely due to Bitcoin adoption. However, BTC being used as a hedge for global issues could have played a role.
Michael Mo , CEO of KULR Technology , stated that this was the reason behind their decision to create a Bitcoin Reserve.
Mo stated that “the distinct characteristics of BTC will attract further serious interest, and it will be able to guard against current events, such as geopolitics and inflation, or any other macro and political events affecting the developed economies.”
analysts have named stagflation as the U.S. macroeconomic theme for 2025, similar to the story that drove the market last year: avoiding a recession.
Bitcoin is also a solution for geopolitical risk. Recent adoption of the leading cryptocurrency by Russia as a solution for cross-border payments to combat sanctions has been a recent development.
