Analyst Flags ‘New Wave’ of Corporate Bitcoin Adoption
While Bitcoin battles to hold $100,000, an analyst cautions an impending “new wave” of corporate adoption as the roster of companies approving Bitcoin reserves grows.
Bitcoin’s 2025 price projections have received a vote of confidence from KULR Technology Group, becoming the first corporate adopter of 2025 with another $21 million BTC purchase on January 6.
KULR expands its #Bitcoin Treasury to $42M with 430.61 $BTC acquired at a $97,391 avg price. This move reinforces our strategy to allocate up to 90% of surplus cash reserves in Bitcoin. $KULR pic.twitter.com/RgWqPlEXm4
— KULR Technology (@KULRTech) January 6, 2025
This doubles down on an identical purchase just two weeks prior, bringing their total holdings to 430 BTC.
Pseudonymous X analyst Medivh believes this trend could gain momentum amid growing “Bitcoin FOMO.” He highlighted several corporations with approved but yet-to-execute Bitcoin adoption plans.
Who’s Pushing the ‘Next Wave’ of Bitcoin Adoption?
As of January 7, multiple publicly traded companies have announced a Bitcoin treasury strategy, though they have yet to acquire any Bitcoin.
Acurx Pharmaceuticals (ACXP), listed on Nasdaq, approved a $1 million Bitcoin purchase on November 20, 2024. Similarly, Hoth Therapeutics (HOTH), also Nasdaq-listed, approved the same amount on the same day.
NYSE-listed SOS Limited (SOS) has taken a bolder approach, approving a Bitcoin reserve of up to $50 million on November 27, 2024.
Meanwhile, Nasdaq-listed LQR House (YHC) approved a $1 million Bitcoin treasury on November 20, 2024. They also announced cryptocurrency payment acceptance and a policy to retain up to $10 million of these payments in Bitcoin.
What’s Giving Corperations ‘Bitcoin FOMO’?
2024 saw Bitcoin enter the corporate main stage, led by MicroStrategy’s adoption of BTC as a treasury asset in 2020. Since then, MicroStrategy’s (MSTR) share price has soared nearly 2,500%.
Companies like Metaplanet (3350), Semler Scientific (SMLR), MARA Holdings (MARA), and various publicly traded miners followed suit, reaping significant success.
Trader Medivh cites this as a “key factor driving other companies to consider a similar strategy.”
A new wave of $BTC corporate adoptions is coming?! 🌊
Public companies are increasingly adding Bitcoin to their balance sheets, following the trend set by MicroStrategy in 2020.
📊 KULR Technology Group recently purchased $21M worth of Bitcoin, bringing its total holdings to… pic.twitter.com/DiIG1xTxTv
— Medivh (@DefiMedivh) January 7, 2025
This does have some merit, considering that since November 19, 2024, the share price of Acurx Pharmaceuticals (ACXP) is down 35%, Hoth Therapeutics (HOTH) is up only just 2%, and SOS Limited (SOS) is down 30%.
LQR House (YHC), the only company to set plans in motion with their crypto payment policy, has seen its share price rise 56%.
While these outcomes can’t be solely attributed to Bitcoin adoption, BTC’s use case as a hedge against global issues may have contributed.
KULR Technology CEO Michael Mo noted this as the rationale behind their move to establish a Bitcoin reserve.
“The distinct characteristics of BTC entail prospects for further serious interest and would stand guard against developing current events such as geopolitics, inflation, and any other macro-and political events impacting the developed economies,” Mo said.
Particularly, hedges against inflation stand to benefit companies this year, with analysts naming stagflation the U.S. macroeconomic “theme of 2025,” much like evading a recession was the narrative driving the market in 2024.
Bitcoin also poses an attractive solution to geopolitical risks. Recently, Russia adopted the leading cryptocurrency as a cross-border payment solution to combat sanctions.
Source: cryptonews.com
