2024 Forecast: Bitcoin Strategies Revamped Amid Anticipated ETF Influx and Crypto Market Developments
Summary:
In anticipation of the institutional capital influx into Bitcoin through ETFs in 2024, companies are redefining their strategies. Bitcoin mining company CleanSpark plans to initiate an in-house trading desk for better management of its Bitcoin holdings. Meanwhile, MicroStrategy's executive chairman, Michael Saylor, plans to sell $216 million worth of company shares over a four-month period, potentially using the proceeds for Bitcoin purchases. Etherscan is set to acquire Solana block explorer Solscan among SOL's value surge, while the global number of Bitcoin ATMs has shrunk by 11.1% since the start of 2023.
Next year, 2024, is expected to bring institutional investments into the world of Bitcoin, via exchange-traded funds (ETFs). This possibility is prompting firms and business leaders to tweak their strategies. Take CleanSpark, the Bitcoin mining enterprise, which has announced the development of its own trading desk. This will provide the company with in-house ability to manage and trade its extensive Bitcoin assets, eliminating dependency on outside brokers or financial services. Lower trading expenses and stimulation of other miners to create trading desks might be benefits of this strategy. A similar approach was employed by Marathon Digital Holdings, which primarily used crypto derivatives, mainly selling BTC call options, as reported by Bloomberg. MicroStrategy is also manoeuvring to take advantage of the Bitcoin rush by amassing BTC in its coffers, to the extent of having its shares branded by some analysts as virtually a leveraged Bitcoin ETF.
This week's Crypto Biz report goes on to delve into the excitement surrounding the prospect of a Bitcoin ETF in America, the acquisition of Solscan by Etherscan, a drop in Bitcoin ATMs, and the previous year’s highest achievers and biggest disappointments among crypto entrepreneurs.
CleanSpark, a U.S. Bitcoin miner, has grand plans for 2024 – it intends to establish an in-house cryptocurrency trading desk to make the most out of its large BTC holdings. CEO Zachary Bradford stated the firm will leverage its hefty Bitcoin balance of 2,575 BTC (valued at around $116 million currently) to strategize around regulated crypto offerings. The revenue for the fiscal year ending in September 2023 was reported at $168 million.
Meanwhile, executive chairman of MicroStrategy, Michael Saylor, has embarked on a four-month journey to sell $216 million of his MicroStrategy shares, with an eye on using the earnings to purchase additional Bitcoin. This move was communicated to the U.S. Securities and Exchange Commission on January 2, wherein Saylor declared his intention to sell 315,000 stock options granted to him back in April 2014, before they expire on April 30, 2024. During the third-quarter earnings call of MicroStrategy on November 2, 2023, Saylor revealed his plans to sell 5,000 MicroStrategy shares daily over the next four months with the aim of fulfilling personal obligations and acquiring more Bitcoin. Furthermore, MicroStrategy has kept adding Bitcoin to its balance sheet, increasing it up to 189,150 Bitcoin, representing a nearly $8.5 billion value currently.
In light of a boost in Solana’s (SOL) price, Etherscan – popular for its Ethereum blockchain explorer – announced the purchase of Solscan, a Solana ecosystem-focused block explorer. Despite not revealing the acquisition’s financial details, this move has rekindled speculation concerning SOL token potentially outpacing Ether (ETH).
On the other hand, after ten uninterrupted years of growth, the international Bitcoin ATM count decreased by 11.1% as of the beginning of 2024, with 33,628 ATMs recorded on January 1, 2024, compared to 37,827 from the prior year. Throughout 2023, the figure for Bitcoin ATMs kept ebbing and flowing, culminating in a shrinkage by year-end. A steady surge in installations has been spotted since the Coin ATM Radar began tracking cryptocurrency ATMs in October 2013, reaching an all-time zenith of 39,376 in August 2022.
Before signing off, take a look at the biggest ups and downs in the world of crypto in 2023 as presented by Cointelegraph’s roundup of crypto entrepreneurs. Stay in the loop about the nitty-gritty of the blockchain and crypto business with the Crypto Biz weekly updates, delivered directly to your email each Thursday.
Published At
1/6/2024 5:42:16 PM
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