Summary:
Genius Group aims to hold 90% of its funds in Bitcoin, recently acquiring $10 million worth.
Over 1 million BTC are now held in corporate treasuries across various companies.
The company's stock saw an 11% surge post-announcement, with a Q4 2024 Bitcoin yield projected at 1,649%.
Genius Group introduced a Bitcoin Treasury KPI to measure performance relative to its Bitcoin reserves.
The trend of companies adopting Bitcoin as a reserve asset is growing, despite some hesitation from others like Microsoft.
On December 30, 2024, Genius Group Ltd, an education tech company, made headlines by purchasing $10 million worth of Bitcoin, aiming to convert 90% of its funds into BTC. This move reflects a growing trend among corporations opting for Bitcoin as their primary asset in corporate treasuries.
Genius Group's Bitcoin Reserve
With over 1 million BTC held by various public and private companies, Genius Group stands out with its Bitcoin-first approach. This Singapore-based company, which serves over 5.4 million students globally, is committed to holding the majority of its funds in Bitcoin. Following their latest acquisition, Genius Group's total Bitcoin holdings reached 319.4 BTC, marking a 50% increase in their reserves.
Market Impact
The company's stock price surged by 11% after the announcement of its Bitcoin strategy, which was initially revealed on November 12, 2024. Genius Group's Q4 2024 Bitcoin yield is projected at an impressive 1,649%. CEO Roger Hamilton is exploring various strategies to maximize shareholder value through this crypto-asset strategy.
A New Financial Approach
Genius Group has introduced a Bitcoin Treasury Key Performance Indicator to measure its market cap against its Bitcoin reserves, believing that adopting the Bitcoin Standard will benefit both the company and its shareholders. They emphasize a long-term commitment to Bitcoin, stating:
"As fundamental believers in the long-term potential of Bitcoin, we donât try to time the market, but rather buy and hold with the intention of never selling."
While Genius Group is not the first company to adopt this strategy, the shift towards a Bitcoin Standard is gaining traction as many companies recognize the value of Bitcoin alongside traditional assets.
The Broader Trend
As of January 6, 2024, Coingecko lists 32 public companies holding Bitcoin, with numerous others creating corporate reserves. Notable examples include MicroStrategy, which holds nearly 450,000 BTC, and Tesla, which sparked interest in Bitcoin reserves back in 2021. The trend continues to grow despite some companies, like Microsoft, hesitating to add Bitcoin to their balance sheets due to market volatility concerns.
Why Companies Are Investing in Bitcoin
Corporate Bitcoin reserves serve multiple purposes:
- Hedge Against Inflation: Following advisories from firms like BlackRock.
- Enhanced Image: Companies can bolster their progressive image and attract attention from the crypto community.
- Budget Boosting: In a bull market, Bitcoin acquisitions can rapidly enhance a company's financial standing without additional production efforts.
However, experts caution against the feasibility of investing heavily in Bitcoin, warning of potential market reversals.
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