More and more companies choose Bitcoin as the prime asset for corporate reserves

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As a forward-thinking crypto investor, I find myself invigorated by the news that on December 30, 2024, Genius Group Ltd, an innovative education tech company, invested $10 million into Bitcoin. Their strategic plan is to convert an impressive 90% of their funds into this digital currency. This move underscores a growing global trend among businesses, who are increasingly viewing Bitcoin as the premier asset for corporate treasuries.

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Genius Group Bitcoin reserve

Many nations are developing plans to hold Bitcoins strategically, while both private and public businesses are amassing Bitcoins for their company reserves. Over a million Bitcoins are currently stored in the corporate reserves of these private and public entities.

As an analyst, I’d rephrase it as follows: I’m analyzing Genius Group Limited, a globally expansive education company headquartered in Singapore, which leverages AI technology to deliver its services. One distinctive aspect of this firm is its Bitcoin-centric financial strategy, meaning approximately 90% of its funds are stored in Bitcoin.

On December 30th, 2024, Genius Group declared they had purchased $10 million in Bitcoin, thereby increasing their Bitcoin assets by half. As a result, the company now holds a total of 319.4 Bitcoins.

As a crypto investor, I’ve been thrilled to see the Genius Group stock soar by 11% since their announcement of a Bitcoin-first strategy on November 12, 2024. This surge is just one of many gains we’ve seen following the bitcoinization of their reserves. The expected Q4 2024 Bitcoin yield? An astounding 1,649%. Genius Group CEO Roger Hamilton has promised to explore numerous opportunities to boost shareholder value even further.

geniustech_inc opted to adopt a Bitcoin Treasury Key Performance Indicator (KPI), as their leadership feels that adhering to the Bitcoin Standard would bring advantages for both the company and its stockholders. This Bitcoin Treasury KPI serves to determine whether the company’s market capitalization exceeds or falls short of the value of its stored Bitcoins.

Crypto.news received an analysis from The Genius Group, detailing the firm’s commitment to Bitcoin.

As an analyst, I am convinced that a novel breed of AI-driven, blockchain-based public companies with a forward-thinking focus can serve as a bridge between today’s centralized and regulated financial markets like the NYSE and NASDAQ, and the future potential of decentralized, exponentially growing economies. Given Genius Group’s unique role in educating for the future, we are presented with a valuable opportunity to enhance our offerings by providing education tailored to prepare the upcoming generation for a world where earning and learning undergo significant transformations.

The Genius leadership team is convinced that as Artificial General Intelligence (AGI) increases and the requirement for stable currency remains, Bitcoin stands out as an ideal investment for our treasury to safeguard and boost long-term shareholder wealth. Being a company registered in Singapore with zero capital gains tax, further strengthens our strategy of focusing on Bitcoin.

Regarding your query about how Genius Group determines the right timing for purchasing Bitcoin, The company clarified its approach to Bitcoin investment by explaining their method for deciding when to buy.

Since we strongly trust that Bitcoin has a bright future ahead, our strategy is not about predicting market fluctuations, but instead involves buying and keeping it, with no plans to ever part ways with it.

Corporate Bitcoin reserves as the new trend

The purchase of a large quantity of Bitcoins by Genius Group Ltd. drew significant focus towards the company, despite it not being one of the initial companies to make such a move. As the crypto market expanded in November 2024 and pro-crypto discourses became more prevalent across various media outlets, numerous public and private entities began adopting the Bitcoin Standard. This involved establishing corporate Bitcoin reserves and valuing these equivalently to traditional assets like the US dollar. For instance, Thumzup Media is said to be aiming to keep 90% of its liquid assets in Bitcoin, and invested $1 million in Bitcoins on January 9, 2025.

By January 6, 2024, CoinGecko lists 32 publicly traded firms that own bitcoins. The Bitcoin Treasuries tool reveals over 70 such companies. Tesla was one of the pioneers who decided to store Bitcoins in their reserves, an action which significantly increased the BTC price in 2021. Since then, other companies have garnered attention for large-scale bitcoin purchases, making headlines.

Clearly, MicroStrategy stands out as the pioneer in the consistent expansion of corporate Bitcoin holdings, having amassed approximately 450,000 Bitcoins, which represents more than 2.1% of the total supply. Marathon Digital Holdings comes in second with around 26,000 Bitcoins. Other key players include Galaxy Digital Holdings, Tesla Inc., Riot Blockchain Inc., and numerous others. Bitcoin Treasuries reports that over twenty public companies each hold more than 1,000 Bitcoins. This same source also reveals eight private companies with over 1,000 Bitcoin units in their corporate reserves. The company leading the pack is Block.one, with a staggering 164,000 BTC, while Tether Holdings Limited follows closely with 83,000 BTC.

The reason why the increasing interest in cryptocurrencies stands out is that it deviates from the traditional corporate stance towards digital currencies, with many companies choosing to steer clear of Bitcoin or adopt a cautious approach. For example, Microsoft shareholders debated whether the firm should include Bitcoin in its financial records. In a majority vote, the proposal was turned down. The reason for this decision was that the company is already thriving and investing in a volatile asset like Bitcoin might make the investment future of Microsoft less certain for shareholders. Michael Saylor of MicroStrategy criticized Microsoft’s refusal to include Bitcoin in its balance sheet as “capital destruction.

Michael Saylor posits that Microsoft’s choice not to invest in Bitcoin has potentially cost them a staggering $1 trillion, making it one of the most significant oversights in tech history, leaving many astonished.

— Swan (@Swan) December 29, 2024

Companies might find it beneficial to own bitcoins for several reasons. Initially, having Bitcoin reserves can act as a safeguard against inflation. If financial giants like BlackRock suggest investing up to 2% of funds in Bitcoin, then it could be wise to heed their advice. In terms of public relations, possessing Bitcoin reserves can enhance the company’s forward-thinking reputation and draw more attention from the cryptocurrency community. Additionally, during a bull market, buying bitcoins may be perceived as an efficient way to rapidly increase the company’s budget without having to create, market, or improve any products. However, it’s worth noting that some experts caution against investing too much of the company’s assets in Bitcoin due to potential upcoming market trend reversals.

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2025-01-10 13:22