Among the many reasons for Bitcoin’s sustained uptrend was the emergence of companies and firms that added BTC to their company’s treasury reserves.
The sudden surge in demand for large sums of BTC during a time of low supply has caused prices to become parabolic. Interestingly, this also applies to the number of mentions in company profit reports that refer to the first cryptocurrency by name.
Bitcoin becomes a corporate treasury asset, led by Michael Saylor, CEO of MicroStrategy
2020 was undoubtedly the year Bitcoin officially matured as an asset. Instead of pure speculation, the cryptocurrency network has shown that it will stay here and instead the underlying asset is being used to protect against dollar inflation.
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Hedge funds began dumping gold, expecting bitcoin to be the top performing safe haven and economic security asset. Shortly thereafter, large publicly traded companies began trading useless cash reserves for an asset that was valued more than anything in history throughout its life cycle.
The bull trend took off once corporations began buying BTC | Source: BTCUSD on TradingView.com
The effort was first led by Michael Saylor, CEO of Nasdaq-listed software company MicroStrategy, who has since attracted more senior cryptocurrency CEOs and brands such as Elon Musk’s Tesla and longtime Bitcoin supporter Jack Dorsey. whose company Square Inc. also bought a lion’s share of BTC.
Top cryptocurrency mentions during corporate earnings reports break record
Since the trend of companies suddenly trying to buy the extremely rare cryptocurrency, the price per coin has become parabolic again. The number of mentions from quarterly or annual earnings reports of the company that contain “Bitcoin” is also increasing at a similarly rapid pace.
According to the Twitter handle Documenting Bitcoin via the Compeete.com website, all of the mentions in the earnings reports have followed a similar course to the price action mentioned above.
Mentions of the top crypto during earnings report discussion are rising | Source: Documenting Bitcoin on Twitter
Bitcoin price is currently struggling to get above $ 60,000 and climb higher. However, these companies, boasting of earnings, could create another FOMO effect once other companies learn how much revenue share has been brought in from cryptocurrencies.
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Coinbase is about to go public and its Bitcoin-related earnings have been record breaking. FOMO may only get foamy from here on, as the aforementioned Saylor held a seminar earlier this year dedicated to educating other executives on how to get BTC in the books.
The fruits of this labor could begin to bloom in the months to come as these executives take a page from Saylor’s playbook and refer to the growing profit numbers that come from rising Bitcoin revenues.
Featured image from Deposit Photos, Charts from TradingView.com