Skip to content

Swan Signal Monthly: February 2021 Newsletter

Corporations are raidly adopting Bitcoin. This will lead to price appreciation and make Bitcoin even hard to stop. Square (SSQ) recently purchased 3,318 BTC (worth $170M) for their corporate treasury.

Brandon Quittem
Brandon Quittem
Feb 28, 2021February 28, 20217 min read7 minutes read

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. 

Ready to start investing in Bitcoin?

As a reminder, Swan offers one-time instant buys or automatic recur­ring purchase plans (ex: $50/week).

In this month’s letter:

  1. Liftoff: a short essay about Bitcoin

  2. A curated list of recent Bitcoin content

  3. 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 to protect their purchasing power. 

Last week MicroS­trategy ($MSTR) bought another $1B worth of Bitcoin (via convert­ible note), bringing their total to around $4B 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 in the U.S. Dollar value of BTC held on corpo­rate balance sheets. 

However, this is only the begin­ning. 

There is still over $4T in cash 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” shows no signs of slowing down.

Swan Private

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 worldwide.

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.

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.” 

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…

Why privacy is impor­tant, privacy best practices, and action­able advice for newcomers and Bitcoiners alike.

Former OTC desk trader clears up the misun­der­stand­ings and FUD around Tether. Summary: Tether is not a threat to Bitcoin. 

Eric Weiss, CEO of Bitcoin Invest­ment Fund, and Andy Edstrom join Brady to discuss the orange pilling of Michael Saylor.

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. 

Thank You!

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! 

Thanks,
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!

Brandon Quittem

Brandon Quittem

Brandon is an entrepreneur, writer, speaker, and passionate Bitcoiner. His articles have been read by more than 2 million people online. Most well known for exploring the parallels between bitcoin and mycelium.

More from Swan Signal Blog

Thoughts on Bitcoin from the Swan team and friends.

See all articles