Yesterday evening I realised that between MicroStrategy, now Strategy, and BlackRock they currently own 5% of all of the Bitcoin that will ever exist. I have spoken about my concerns regarding corporates and banks moving into the crypto space many times before and it's something that still bothers me.
Now I am fully prepared to accept that a lot of this mainstream move into crypto can be welcomed, albeit given a cautious welcome. To see this growing institutional adoption of crypto lends a greater legitimacy to cryptocurrencies and increases adoption by more ordinary individuals, not just those corporate powers.
So yes there is a positive. However, while we can clearly see these corporate interests wanting a slice of the pie I worry they may want all of it. It's good to see crypto now embraced by institutions that once shirked crypto as a fools gold or a scam and attempted to persuade others to see it in the same light. While I hope of course CBDCs never become a reality, and under the current US administration that is unlikely to happen now, it's encouraging to an extent to witness governments acquire crypto holdings.
All of these things help to legitimise the crypto scene, coupled with sensible regulation crypto can now be considered a serious investment, although the masses still need some convincing.
However, institutional interest in crypto is one thing institutional control is another and something I think might happen. Some people do not worry about this claiming the big boys could never own enough crypto to control the space, I would like to believe that but I'm not so sure.
Let me provide you with one significant example. MicroStrategy who are now known as Strategy have today filed an SEC prospectus in which they plan to raise $21bn via perpetual strike preferred stock offerings in a bid to accumulate more Bitcoin. Should they purchase a further $21bn worth of Bitcoin that would push them into serious Bitcoin ownership, to the point where their influence in the cryptosphere becomes far more dominant than right now, even though they already own 5% of all Bitcoin.
Some see the Strategy $21bn move as a cause for concern, I so also. Are we now seeing hard evidence of the mainstream starting to control the cryptosphere? Will this potential accumulation give one corporation too much influence over crypto?
Peace!