Summary:
Acurx Pharmaceuticals plans to purchase up to $1 million in bitcoin as a treasury reserve.
CEO David P. Luci believes bitcoin will serve as a strong asset for cash not needed in the next 12 to 18 months.
This strategy follows MicroStrategy's successful adoption of bitcoin as a primary treasury asset.
The price of bitcoin is up 122% this year, indicating growing acceptance and demand.
Corporate adoption of bitcoin is slow but crucial for the cryptocurrency market's growth.
Acurx Pharmaceuticals Takes a Step into Bitcoin
The board of Acurx Pharmaceuticals has officially approved the acquisition of up to $1 million in bitcoin to be held as a treasury reserve asset. This strategic decision echoes the playbook of MicroStrategy, which has been a pioneer in adopting bitcoin as a primary treasury reserve.
Despite a recent drop of over 6% in share prices, following an 8% spike in premarket trading, CEO David P. Luci expressed confidence in bitcoin's potential. He stated, "As demand for bitcoin grows, and so does its acceptance as a major and primary asset class, we believe that bitcoin will serve as a strong treasury reserve asset for cash not needed over the next 12 to 18 months."
He further emphasized bitcoin's limited supply and inflation-resistant characteristics, noting that this treasury strategy is a financial move that won’t affect their drug development plans.
Following in the Footsteps of MicroStrategy
This decision mirrors MicroStrategy's bold approach in 2020, when it acquired 21,454 bitcoins at approximately $11,653 each before a significant price surge. Since then, MicroStrategy has acquired a total of 331,200 bitcoins, with its stock soaring over 500% for 2024.
The adoption of bitcoin by corporate treasuries is a slow but crucial catalyst for the cryptocurrency market. With bitcoin currently trading at all-time highs, experts anticipate its value could double by the end of 2025, particularly with a more favorable regulatory environment expected under President-elect Donald Trump.
Investors are keenly observing which major companies will follow suit after MicroStrategy, with Tesla and Block having made similar moves in 2021.
A Broader Movement Toward Bitcoin Reserves
On a recent X Spaces event, MicroStrategy's Chairman Michael Saylor revealed plans to advocate for a bitcoin treasury strategy to the board of Microsoft in December. The conversation has even reached government levels, with Sen. Cynthia Lummis proposing a national strategic bitcoin reserve.
As of now, the price of bitcoin has surged 122% this year, marking a significant milestone in its adoption journey.
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