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Bitcoin: A Unique and Decentralized Asset
Langgampos.com - BlackRock analysts emphasize that no single country or government controls Bitcoin, making it a rare and decentralized asset. Despite Bitcoin's recent correlation with the movements of U.S. stock prices, BlackRock Inc. argues that labeling cryptocurrencies as "risky" assets is likely a misunderstanding.
According to a report by Yahoo Finance on September 26, 2024, stocks, commodities, and high-yield bonds are typically seen as risky assets, performing well during periods of market optimism and economic expansion. Conversely, assets like gold tend to gain popularity among investors during times of uncertainty.
Robbie Mitchnick from BlackRock stated to Bloomberg, "Gold shows many similar patterns. You have temporary periods, but the long-term correlation is close to zero.” He noted that Bitcoin is seen as an emerging global monetary alternative.
“It is a rare, global, decentralized, and non-sovereign asset that lacks country-specific risk and counterparty risk,” Mitchnick added.
BlackRock manages exchange-traded funds that invest in Bitcoin and Ether. While many investors regard Bitcoin as digital gold—valuable in tough times—the narrative around Ether remains “a bit less clear” among many institutional clients, according to Mitchnick. Ether serves various applications on the Ethereum blockchain.
In 2024, Bitcoin has risen by 49%, and Ether has appreciated by 15%, largely due to the approval of ETFs holding both tokens earlier in the year.
Bhutan's Significant Bitcoin Holdings
Recently, crypto intelligence firm Arkham highlighted Bhutan's substantial Bitcoin holdings on social media platform X. Bhutan, a small landlocked kingdom in the eastern Himalayas, shares borders with China to the north and India to the south, and has a population of less than 800,000.
Arkham has tracked Bhutan's on-chain Bitcoin transactions, revealing that the government currently holds over USD 828 million, equivalent to approximately IDR 12.5 trillion (assuming an exchange rate of IDR 15,161 per USD) in Bitcoin.
“This holding comes from Bitcoin mining operations run by Bhutan's investment arm, Druk Holdings,” Arkham reported, as cited by Bitcoin.com on September 25, 2024.
Arkham explained that Bhutan has established crypto mining facilities at various locations, with the largest at the now-defunct Education City project.
The crypto intelligence firm added that they confirmed this activity by reviewing satellite imagery and correlating it with the timeline of on-chain mining operations.
“We can validate the timeline of on-chain mining activity with satellite imagery of the facility's construction,” Arkham clarified.
Unlike most governments, Bhutan's Bitcoin holdings did not arise from law enforcement asset seizures but rather from Bitcoin mining operations, which have significantly increased since early 2023.
MicroStrategy's Latest Bitcoin Acquisition
In another development, MicroStrategy announced the purchase of additional Bitcoin, acquiring 7,420 BTC for over USD 458 million, equivalent to approximately IDR 6.9 trillion (assuming an exchange rate of IDR 15,160 per USD). According to a filing with the U.S. Securities and Exchange Commission (SEC) on September 20, 2024, MicroStrategy acquired the additional BTC at an average price of USD 61,750, or approximately IDR 936.1 million per BTC.
MicroStrategy, a cloud analytics company that currently holds the largest public Bitcoin reserve, also reported a total BTC yield of 5.1% for the quarter and 17.8% year-to-date.
This latest purchase brings the company's total holdings to 252,220 BTC, up from 244,800 BTC. Since its initial Bitcoin acquisition in August 2020, led by Michael Saylor, the company has invested around USD 9.9 billion to increase its Bitcoin reserves.
This includes a recent addition of 18,300 BTC valued at USD 1 billion, acquired at an average price of USD 39,266 per BTC, resulting in unrealized gains exceeding USD 5.9 billion. In August 2024, Saylor revealed that he personally owns USD 1 billion in Bitcoin.
On September 20, MicroStrategy announced the completion of a USD 1 billion senior convertible bond offering, with plans to use the proceeds to purchase more Bitcoin.
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