Investments by large corporations in Bitcoin signal the emergence of FOMO on the corporate market. This was stated by Grigory Klumov, founder of the stablecoin platform Stasis.
According to him, recent announcements by public companies Square and Microstrategy opened Pandora’s box for large corporate cash holders, as well as a path to allocate funds into Bitcoin.
“At first we learned of public companies that began allocating cash, as a hedge against inflation, into Bitcoin. Such companies are required to report quarterly on their actions, which could lead to material changes in the balance sheet.”
During the American trading session there was sustained demand for Bitcoin in the Time Weighted Average Price (TWAP) format. This means that a certain volume of orders in dollar terms is executed at equal intervals to smooth the cost of acquiring the asset.
“This algorithm is most often used by corporate clients who need to build a position within a limited timeframe. They typically do not want to bear responsibility for the execution price with a market order, and want to ‘spread’ it by choosing the moment of acquisition,” explains Grigory Klumov.
The number of private companies involved in buying Bitcoin is almost impossible to estimate — they are not required to report.
“The fact is that buying Bitcoin is becoming an infectious idea and the main trend of the fourth quarter,” notes the expert.
Some corporate clients are interested in acquiring Ethereum.
“Ether is bought by traders who did not manage to accumulate a position in Bitcoin. At the moment it is lagging the asset, but it is also popular — the correlation of Ether with Bitcoin has historically been high,” adds Klumov.
In October, MicroStrategy purchased 21,454 BTC for about $250 million. MicroStrategy CEO Michael Saylor said that the company plans to store the acquired Bitcoin for 100 years.
Also he stated that he holds a substantial portion of assets in Bitcoin as a private individual.
In the same month, the payments company Square, Jack Dorsey’s payments company, announced Bitcoin purchases of about $50 million.
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