Crypto analyst Dylan LeClair has highlighted a groundbreaking Bitcoin strategy pioneered by MicroStrategy, a company that has become a leading example in the field of Bitcoin adoption. This strategy, now being implemented by even soccer clubs, involves utilizing traditional corporate finance tools to amass Bitcoin.
LeClair explained on the “What Bitcoin Did” podcast that the core of this strategy revolves around leveraging corporate finance mechanisms to accumulate Bitcoin. For publicly traded companies like MicroStrategy, this entails issuing convertible bonds and equity to purchase Bitcoin, effectively creating a “Bitcoin balance sheet.” By issuing bonds and equity, MicroStrategy was able to access capital at extremely low rates, which they then used to acquire Bitcoin.
While this approach might have seemed risky to some, it has yielded significant returns for MicroStrategy. The company’s market capitalization has skyrocketed from $1 billion to over $30 billion since adopting this strategy. LeClair believes that the success of this approach will encourage more companies to embrace similar strategies as Bitcoin gains wider acceptance. However, he acknowledges that fully embracing this strategy remains a “radical step” for many corporations at this point in time.
This strategy isn’t limited to publicly traded companies. Real Bedford FC, an eighth-tier English football club, has accumulated 82 Bitcoin using similar principles. Peter McCormack, the club’s chairman and podcast host, shared that this has led to unprecedented merchandise sales and sponsorship deals for a club at their level. “We’re getting the same sponsorships that clubs get in the professional leagues because they want exposure to Bitcoiners,” McCormack stated.
“We’re starting to see those trickle in,” LeClair concluded, “but I don’t think we’re at the point in time where that’s widely adopted yet.” This trend is further evidenced by the recent launch of Defiance ETFs’ MSTX, the first single-stock leveraged ETF for MicroStrategy in the U.S.
The influence of Bitcoin as an institutional asset class is expected to be a key topic at Benzinga’s upcoming Future of Digital Assets event on November 19. This event will delve into the growing impact of Bitcoin on the corporate and financial world.
