UK Company adopts Bitcoin as treasury reserve assets

[cryptomaniac_xxx]

Another company put bitcoin in their radar and make it a treasury reserve asset.

The company is Mode Global Holdings, will allocated 10% of their assets to BTC. So more institutional investors are joining the bandwagon globally, the question is who's next?



https://www.investegate.co.uk/mode-global-holdings--mode-/rns/mode-adopts-bitcoin-as-treasury-reserve-asset/202010210700037078C

[mk4]

I really don't want to be the party pooper here, but if anyone is expecting a huge amount of money from this one company, then sorry to say that it's really not that much. 10% of their cash reserves are only a total of around £72200/$94,365; at least based on their June filings[1]. It's approximately a BTC7.27 at today's prices.

Not that much money, but at least the publicity is good so there's that.

dontkillmepls

[1] https://www.londonstockexchange.com/news-article/MODE/interim-results-for-the-period-ended-30-june-2020/14716173

[Poker Player]

I really don't want to be the party pooper here, but if anyone is expecting a huge amount of money from this one company, then sorry to say that it's really not that much. 10% of their cash reserves are only a total of around £72200/$94,365; at least based on their June filings[1]. It's approximately a BTC7.27 at today's prices.

Not that much money, but at least the publicity is good so there's that.

I don't think the total money is as relevant as the percentage and, yes, I think the publicity is good but imagine that Amazon bought 10% of their assets in bitcoin. I hope that news like this will continue to follow, helping to normalize the holding of bitcoin as reserves. The day will come when it won't even be news.

[Lordhermes]

but if anyone is expecting a huge amount of money from this one company, then sorry to say that it's really not that much. 10% of their cash reserves are only a total of around £72200/$94,365; at least based on their June filings. It's approximately a BTC7.27 at today's prices.

Oh, I really though its that much, but that's not an issue either, in as much as it was announced publicly, then that's cool, but in time forward, other companies will definitely buy the idea of reserving bitcoin for any sub scale of preference.

I think the publicity is good but imagine that Amazon bought 10% of their assets in bitcoin. I hope that news like this will continue to follow, helping to normalize the holding of bitcoin as reserves. The day will come when it won't even be news.

This is perfectly true, I have come across this similar news several times which I think really think is the backbone behind recent spike in bitcoin price. The publicly however will somewhat convince people having a doubt that bitcoin is scamming things.

[mk4]

I don't think the total money is as relevant as the percentage and, yes, I think the publicity is good but imagine that Amazon bought 10% of their assets in bitcoin.

Nah. The likeliness of Amazon doing something like this is slim to nothing. Amazon is a growth company, and growth companies are going to need A LOT of cash to continue growing their business. As much as how good of an investment bitcoin is, it simply doesn't align with Amazon's mission. Same with most tech growth companies.

[Tytanowy Janusz]

It seems to me that this may be the basis for the creation of a new paradigm on the basis of which the next bitcoint bubble will be based.

According to the newest Fidelity* paper "BITCOIN INVESTMENT THESIS BITCOIN’S ROLE AS AN ALTERNATIVE INVESTMENT" - Bitcoin is an "alternative asset" not related/connected to other assets and is a great hedge against them - in case of their failour. They suggest building diversified portfolio in a way that min 5% of it is allocated in Bitcoin.

Fidelity - "It is one of the largest asset managers in the world with $3.3 trillion in assets under management as of June 2020 and a combined total customer asset value number of $8.3 trillion"


If they will apply this strategy into their portfolio than 5% from $8.3 trillion is equal to $ 415 bilion. Marketcap of Bitcoin is equal $ 240 billion. So there is not enough bitcoins only for them (at current price).

[SnapExOfficial]

What large company do you think will be next to adopt Bitcoin as treasury reserve assets? Btw you can buy or sell your BTC at SnapEx today!

[fiulpro]

Do Bitcoins have the ability to give up Volatility?
- I believe No
Therefore if these companies are putting them up as a treasure assets then I do believe they are not interested in the short term holding but rather they want to extend and believe that bitcoins is going to reach great heights in the future. These companies are not small thing , they have various professionals working with them, advising them. Therefore the companies are slowly getting used to the idea of cryptocurrencies like Bitcoins because they are here to stay for long. This is a positive step and would even influence other people to get involved with bitcoins.

But then again we have a big question here :

Would they work for the benefit of bitcoins or will infact keep the profit of the company as priority.
Since they can very easily modify the price of the market for their personal profits.

[AjithBtc]

The holding in comparison to other large companies making the investment is very low, but such small scale companies participation is a must. When more small scale companies prioritise bitcoin as reserve, automatically the volume of bitcoin as reserve peaks high. This can lead to higher margin adoption which might further support in mainstream adoption.

[int03h]

It's no longer surprising that financial firms include bitcoins in their portfolios as they operate for profit. Maybe soon, they will sell off bitcoins as they make a profit.
These companies are launching a bitcoin speculative movement within the enterprise. Bitcoin will be in higher demand for buying and motivated to increase in value.

[avikz]

I really don't want to be the party pooper here, but if anyone is expecting a huge amount of money from this one company, then sorry to say that it's really not that much. 10% of their cash reserves are only a total of around £72200/$94,365; at least based on their June filings[1]. It's approximately a BTC7.27 at today's prices.

Not that much money, but at least the publicity is good so there's that.

dontkillmepls

[1] https://www.londonstockexchange.com/news-article/MODE/interim-results-for-the-period-ended-30-june-2020/14716173

Money is an important aspect most definitely, but I believe it's a great move conidering a company is entrusting a percentage of their asset on bitcoin. I think the confidence is what matter really in this case! 7 bitcoins are not really huge but the context is that corporates are gaining confidence on bitcoin! I think it really matters because every new change starts with a baby step. Companies have just started taking that! So that is important here, not the monetary value!

[aysg76]

Another company put bitcoin in their radar and make it a treasury reserve asset.

The company is Mode Global Holdings, will allocated 10% of their assets to BTC. So more institutional investors are joining the bandwagon globally, the question is who's next?



https://www.investegate.co.uk/mode-global-holdings--mode-/rns/mode-adopts-bitcoin-as-treasury-reserve-asset/202010210700037078C

Many companies have started to add Bitcoin in their treasury reserve.According to bitcointreausery.org has listed the name of 23 companies which are listed on various exchanges like Nasdaq which have Bitcoin in their reserves and the total amount of btc held by them is nearly 785k btc coins which is approximately 4% of the total supply cap at this time and amount is nearly $10 billion in reserves with them and that is really a huge amount.Most of them are publicly traded companies like MicroStrategy holds nearly 38000 btc in their reserve, Square Inc holds 4700 bitcoins and private companies like block.one holds roughly 140000 bitcoins in their reserves.So we can say that most of the big companies are also indulging themseleves with cryptocurrencies so as to secure their future financial services and gain profit with time that's what investment really means and they are doing so.

[Becky666]

Well, this should be applaud becasue of their involvement into the system unlike others whom might look into Bitcoin volatility. What i think about we not  having giants like big tech will be Bitcoin volatility, but aside this negative aspect of Bitcoin others would have been involve. Although, seeing those companies getting into the space is a welcome development which would be the basis of the current market getting positive bullish.

[gentlemand]

I really don't want to be the party pooper here, but if anyone is expecting a huge amount of money from this one company, then sorry to say that it's really not that much. 10% of their cash reserves are only a total of around £72200/$94,365; at least based on their June filings[1]. It's approximately a BTC7.27 at today's prices.

They just did some sort of IPO and the inference is they're using the money from that, which probably did not impress the people who threw some cash at them.

[Baofeng]

Would they work for the benefit of bitcoins or will infact keep the profit of the company as priority.
Since they can very easily modify the price of the market for their personal profits.

It works both ways, if these companies keep investing on bitcoin then there's a chance that this might be the catalyst for the next bull run. I remember way back after the bubble has been burst early in 2018 and asking where should be the money will come if we are going on another run, another all time high in the future. So I guess this is the answer, institutional money coming from companies flowing into bitcoin ecosystem. Definitely, everyone even average joe's have their sights for personal profits, so for me this is a win-win situation, it's just a matter on when to get our profits, when bitcoin hits a new all time high? 6 digits in the future?

[dothebeats]

I'm still not spelling out the reason as to why more and more companies are suddenly starting to have a feel for bitcoin. Not so long ago, most of their reason as to why they are not adopting bitcoin into their business model or using it as an asset is due to volatility concerns. Not much has changed since then, and bitcoin is still a highly-volatile coin. Personally I think this will somehow spark a trend on startup companies and some select tech companies focused on fintech, which will then fuel the price higher until it can't hold it anymore. It will also be these same companies that will be the downfall of that bull run once they abandon or forego a % of their bitcoins just to offset their losses.

[gentlemand]

It will also be these same companies that will be the downfall of that bull run once they abandon or forego a % of their bitcoins just to offset their losses.

This will definitely be a factor that didn't exist before and we'd be naive to discount it. Company money arriving now may well feel like a total genius for the next 12-18 months. What happens after is the decider. I see no reason why most wouldn't be headless chickens just like everyone else.

At least most will have arrived via OTC and will depart the same way even if it does add up overall.

This is a weird trend I didn't see coming and many of the late arrivals, who'll be the majority, may meet a rapid and sticky end.

[Kemarit]

I'm still not spelling out the reason as to why more and more companies are suddenly starting to have a feel for bitcoin. Not so long ago, most of their reason as to why they are not adopting bitcoin into their business model or using it as an asset is due to volatility concerns. Not much has changed since then, and bitcoin is still a highly-volatile coin.

Yeah, the only reason I can think of is that they want to take advantage of it's volatility, huge investments, huge gains. They might have been looking at the 2017 boom and bust, so they want to get early and get out once the bubble is burst.

Personally I think this will somehow spark a trend on startup companies and some select tech companies focused on fintech, which will then fuel the price higher until it can't hold it anymore. It will also be these same companies that will be the downfall of that bull run once they abandon or forego a % of their bitcoins just to offset their losses.

Again, just the nature of crypto, we might even compare them to the irrational buyers in 2017, but the main difference is that these companies knows what they're doing and could get profits in no time without waiting for it to go to another bubble.

[ardentvolcanoes]

It's no longer surprising that financial firms include bitcoins in their portfolios as they operate for profit. Maybe soon, they will sell off bitcoins as they make a profit.
These companies are launching a bitcoin speculative movement within the enterprise. Bitcoin will be in higher demand for buying and motivated to increase in value.

It's no longer surprise and we will expect more companies / businesses to adopt and start engaging to this market.

Bitcoin will be embraced and serves more as reserve assets as the value keeps bringing the attentions especially when

the bullish season start to pumped up.

[malevolent]

I really don't want to be the party pooper here, but if anyone is expecting a huge amount of money from this one company, then sorry to say that it's really not that much. 10% of their cash reserves are only a total of around £72200/$94,365; at least based on their June filings[1]. It's approximately a BTC7.27 at today's prices.

It's mostly symbolic but it's also another sign of Bitcoin being increasingly recognized as digital gold, it's less of a hyperbole to refer to it as such nowadays.

This will definitely be a factor that didn't exist before and we'd be naive to discount it. Company money arriving now may well feel like a total genius for the next 12-18 months. What happens after is the decider. I see no reason why most wouldn't be headless chickens just like everyone else.

At least most will have arrived via OTC and will depart the same way even if it does add up overall.

Considering the fact that there's more friction involved compared to regular exchanges, there at least might be less thoughtless panic selling contributing to volatility.