Welcome to the February 2021 edition of the Swan Signal monthly newsletter.
Today we’re exploring the accelerating trend of corporations adopting Bitcoin and the potential implications.
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In this month’s letter:
- Liftoff: a short essay about Bitcoin
- A curated list of recent Bitcoin content
- Behind the scenes updates from the Swan team
Liftoff: Accelerating Trend of Corporations Buying Bitcoin
Corporations are rapidly adopting Bitcoin. This will lead to price appreciation and make Bitcoin even harder to stop.
Square ($SQ) recently purchased 3,318 BTC (worth $170M) for their corporate treasury.
Combined with their October 2020 Bitcoin purchase, Square now has $396M worth of BTC on their balance sheet.
Twitter, also run by Jack Dorsey, announced a $1.25B convertible note offering. Could they be following the MicroStrategy playbook and raising funds to buy Bitcoin for Twitter’s balance sheet?
How significant is corporate adoption?
We’re witnessing an accelerating trend of corporations buying Bitcoin in large volumes in an effort to protect their purchasing power.
Last week MicroStrategy ($MSTR) bought another $1B worth of Bitcoin (via convertible note), bringing their total to around $4B of Bitcoin on their balance sheet.
Tesla bought $1.5B in Bitcoin representing about 5% of their treasury.
CEO of Stone Ridge Asset Management, Ross Stevens, said they have enough institutional customers lined up to acquire another ~$20B of Bitcoin by the end of 2021.
In other words, this trend of institutional money flowing into Bitcoin is accelerating.
Let’s run the numbers from BitcoinTreasuries.org
On October 8th, 2020, approximately 60,000 Bitcoin (worth $618M) were held on corporate balance sheets.
By February 24th, 2021, Bitcoin held in corporate treasuries increased to 1,300,000 BTC worth over $74B.
This is a 22x increase in BTC held in corporate treasuries in the last 5 months…
Not to mention a 120x increase of the US Dollar value of BTC held on corporate balance sheets.
However, this is only the beginning. There is still over $4T in cash sitting on Corporate balance sheets in the US alone.
Positive Feedback Loop
Michael Saylor, CEO of MicroStrategy, bought $2B+ worth of Bitcoin and has since “open-sourced” his playbook. He hosted a conference in February 2021 teaching 1,000+ corporations how to buy and hold Bitcoin on their balance sheet.
“Bitcoin is an investment grade, safe-haven treasury reserve asset. Bitcoin is the solution to the store of value problem faced by all corporations and their customers.” —Michael Saylor
People who own Bitcoin, such as Elon Musk, Michael Saylor, and Jack Dorsey, have a strong incentive to promote their investment. Why? Because it pushes the Bitcoin price up making their investment more valuable.
In MicroStrategy’s case, acquiring Bitcoin also led to an incredible price appreciation of their stock ($MSTR). How could any corporate treasury ignore this?
It gets even better…
Corporations aren’t only buying it as an investment-grade treasury reserve asset. They’re also plugging their business operations into the Bitcoin network.
Some corporations are selling bitcoin (Square/PayPal), others provide custody (Fidelity), some are accepting BTC as payment (Tesla), and others are mining Bitcoin (Marathon/Riot Blockchain).
This represents a new stage of acceptance by the legacy financial system in the US. As Bitcoin continues to entrench itself in the existing political structure, it becomes harder and harder to stop.
Luckily for Bitcoin holders, this trend of “acceptance” is showing no signs of slowing down.
Since MicroStrategy opened the floodgates in October, Swan has seen a deluge of international interest from corporations, HNWI, and other entities.
To meet that global demand we have launched Swan Private, open for business all over the world.
Swan Private guides corporations and high net worth individuals toward building generational wealth with Bitcoin.
What Swan Customers are Saying
Thank you for being an example of how to run a bitcoin company. Your team gives a lot and you’ve won the community over. No one ever has a single bad thing to say about swan and co which is a difficult feat in this industry.”-Swan Customer
Swan is the easiest and safest way to accumulate Bitcoin.
Start investing in Bitcoin with Swan today.
We’ve pulled together some great Bitcoin content from around the web for you…
Bitcoin Content Showcase
Ross Stevens + Michael Saylor at MicroStrategy Conference
Best Bitcoin interview of the year? Ross Stevens is the Founder and CEO of Stone Ridge Asset Management. Ross said they’ll have over $26b in BTC under management by the end of 2021.
Can Governments Stop Bitcoin by Alex Gladstein
Alex addresses a common concern “won’t the government shut down bitcoin?” As the Chief Strategy Officer for the Human Rights Foundation, Alex has a unique perspective.
Bitcoin is Venice by Alan Farrington
Philosophical essay exploring Bitcoin as a type of economic system akin to that of ancient Venice’s gold standard. Jordan Peterson even tweeted out this essay and later asked several Swan employees to have a conversation.
Bitcoin is Protecting Human Rights (video) by Alex Gladstein
Learn how Bitcoin is being used to empower oppressed individuals around the world. Rebuttal for ‘Bitcoin is only for speculation.”
What Bloomberg Gets Wrong about Bitcoin’s Climate Footprint by Nic Carter
Journalists keep comparing Bitcoin to Visa. Nic refutes this comparison and explores the different “layers” of the monetary stack.
Highlights from Swan’s Content
Swan is dedicated to producing great content to educate and raise awareness about Bitcoin. Some highlights from February…
Bitcoin Privacy Best Practices by Gigi
Why privacy is important, privacy best practices, and actionable advice for newcomers and Bitcoiners alike.
Is Tether a Threat to Bitcoin? by Dan Matuszewski
Former OTC desk trader clears up the misunderstandings and FUD around Tether. Summary: Tether is not a threat to Bitcoin.
Swan Signal Live 50: Eric Weiss and Andy Edstrom
Eric Weiss, CEO of Bitcoin Investment Fund, and Andy Edstrom join Brady to discuss the orange pilling of Michael Saylor.
Swan Signal Live 49: Robert Breedlove and Knut Svanholm
Fascinating discussion of personal sovereignty, the future of the state, and the philosophical context of Bitcoin.
Behind the Scenes at Swan
- Swan hit another record-breaking month in terms of new members and total Bitcoin bought (never gets old saying this)
- Swan Private: Our concierge service that guides corporations and high-net-worth individuals toward building generational wealth with Bitcoin is live. Hundreds onboarded already, join us.
- Wire Transfers: Wiring instructions have changed! Good news is your wire transfers will clear faster enabling you to convert your dollars into Bitcoin faster through Swan.
- Swan in the media: Cory was mentioned in the Wall Street Journal, Yan was interviewed on SALT Talks by Skybridge, and Cory was interviewed on the What Bitcoin Did podcast.
- Clubhouse: The Swan team has been hosting Bitcoin rooms on Clubhouse. We’ve helped grow a Bitcoin club, Café Bitcoin, to over 60K followers with Bitcoiners all over the world hosting rooms in the club. Really incredible growth in six weeks.
- Facebook: We run a Facebook group called Café Bitcoin to help educate people about Bitcoin. Join the group and invite your friends!
- Swan Force: Grown to over 4,500 members! Join Swan Force to get paid to recruit Bitcoiners. When you recruit someone to Swan, you’ll earn 25% of all Swan fees for 3 years.
Our mission at Swan is to onboard the next 10 million Bitcoiners and we couldn’t do it without you!
As always, Swan is here to ensure investing in Bitcoin is easy, fast, and safe. Click here to get started today!
The Swan Team
P.S. Questions? Reach us at SwanBitcoin.com/support.
P.P.S. As part of our commitment to education, we’re offering you and your friends a free copy of Inventing Bitcoin by Yan Pritzker. Share this link around!
This blog offers thoughts and opinions on Bitcoin from the Swan Bitcoin team and friends. Swan Bitcoin is the easiest way to buy Bitcoin using your bank account automatically every week or month, starting with as little as $10. Sign up or learn more here.