PALM BEACH, Fla., Dec. 26, 2024 (GLOBE NEWSWIRE) -- FN Media Group News Commentary - A recent article in Bitcoin Magazine addressed the recent tsunami of companies jumping into the current “IT” strategy… Bitcion as a treasury asset. The article said: “MicroStrategy’s corporate Bitcoin treasury strategy is taking off. Public companies are FOMO’ing (“Fear Of Missing Out”) into bitcoin. It’s almost as if Trump’s pro-Bitcoin stance is giving companies the green light to stack BTC. (One day in November alone ) seven public companies announced that they have bought or plan to buy bitcoin for their treasury reserves, with one new company committing to purchasing $1 million in BTC (the next day). Crazy, right? It has felt like a minimum of one to two new companies a day are adopting bitcoin as a reserve asset — not to mention all the companies getting bitcoin exposure via the ETFs. It’s surreal to witness the FOMO from companies adopting a corporate Bitcoin playbook in real time… Over the course of the next year I’m expecting this corporate Bitcoin adoption to only increase as the price of bitcoin rises and Trump takes office.” A review of the market shows that leading companies are embracing Bitcoin Treasuries as a Strategic Asset. The adoption of Bitcoin as a corporate treasury asset is gaining momentum among innovative companies across industries. Recognizing the potential of Bitcoin as a store of value and hedge against inflation, businesses like Rumble, MicroStrategy, Marathon Digital Holdings, Hut 8 Mining Corp, KULR Technology Group, Block Inc., and Coinbase are leading the charge in integrating Bitcoin into their financial strategies. Active tech companies in news today include: KULR Technology Group, Inc. (NYSE: KULR), Hut 8 Corp. (NASDAQ: HUT), MARA Holdings, Inc. (NASDAQ: MARA), Rumble Inc. (NASDAQ: RUM), MicroStrategy® Incorporated (NASDAQ: MSTR).
Bitcoin Treasuries: A Growing Trend in Corporate Strategy - Bitcoin’s decentralized nature, finite supply, and growing adoption make it an attractive option for companies looking to diversify and strengthen their balance sheets. As global economic conditions evolve, more organizations are exploring Bitcoin as a long-term asset to preserve value and capitalize on its potential appreciation. Various companies are key players such as: “The video-sharing platform Rumble recently announced its intention to incorporate Bitcoin into its treasury reserves. By adopting Bitcoin, Rumble aims to align with its vision of decentralization and freedom of choice, resonating with its global user base; MicroStrategy is a pioneer in Bitcoin adoption among public companies, with over 150,000 BTC held as of its latest disclosure. The company’s CEO, Michael Saylor, has championed Bitcoin as a superior store of value and a transformative financial asset for corporate treasuries; Marathon Digital Holdings As a leading Bitcoin mining company, Marathon Digital Holdings not only produces Bitcoin but also incorporates it into its treasury strategy. The company’s commitment to holding Bitcoin aligns with its belief in the cryptocurrency’s long-term potential; and Hut 8 Mining Corp, another major player in the Bitcoin mining industry, has adopted a "HODL" strategy, holding a significant portion of its mined Bitcoin on its balance sheet. This approach reflects Hut 8’s confidence in Bitcoin’s future as a valuable asset.
KULR Technology Group, Inc. (NYSE American: KULR) Launches Bitcoin Treasury with Purchase of 217.18 Bitcoin for $21 Million - KULR Technology Group, Inc. (the "Company" or "KULR") ($KULR) a leader in advanced energy management platforms, today announced that it has completed the purchase of 217.18 Bitcoin (“BTC”) for approximately $21 million, at an average price of $96,556.53 per BTC.
The purchase follows the Company’s announcement on December 4th of its Bitcoin Treasury strategy in which it announced allocating up to 90% of its surplus cash to BTC. The $21 million of BTC purchased since the announcement is the first of ongoing purchases the Company intends to make going forward. KULR selected Coinbase’s (COIN) Prime platform to provide custody, USDC, and self-custodial wallet services for its BTC. CONTINUED… Read this entire press release and more news for KULR at: https://www.financialnewsmedia.com/news-kulr/
In other developments in the tech/crypto industries of note:
Hut 8 Corp. (NASDAQ: HUT), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest Bitcoin miners, recently announced the purchase of approximately 990 Bitcoin. The aggregate purchase price of the acquired Bitcoin was approximately $100 million, or an average of approximately $101,710 per Bitcoin.
Combined with the Bitcoin held prior to this purchase, Hut 8’s strategic Bitcoin reserve now totals 10,096 Bitcoin with a market value of more than $1 billion as of December 18, 2024. Based on publicly available information, the Company believes this positions it as one of the ten largest corporate owners of Bitcoin in the world. The 10,096 Bitcoin held in reserve were acquired through low-cost production and the strategic at-market purchase announced today for a realized average cost of $24,484 per Bitcoin. The purchased Bitcoin will play a central role in an innovative financing model for the Company’s previously announced fleet upgrade.
MARA Holdings, Inc. (NASDAQ: MARA), a global leader in leveraging digital asset compute to support the energy transformation, recently announced the closing on December 4, 2024 of its offering of 0.00% convertible senior notes due 2031 (the “notes”). The aggregate principal amount of the notes sold in the offering was $850 million. MARA also granted the initial purchasers an option to purchase an additional $150 million aggregate principal amount of the notes within a 13-day period beginning on, and including, the date on which the notes were first issued. The notes were sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).
The net proceeds from the sale of the notes were approximately $835.1 million, after deducting the initial purchasers’ discounts and commissions but before estimated offering expenses payable by MARA. MARA expects to use approximately $48 million of the net proceeds from the sale of the notes to repurchase approximately $51 million in aggregate principal amount of its existing convertible notes due 2026 (the “existing 2026 convertible notes”) in privately negotiated transactions with the remainder of the net proceeds to be used to acquire additional bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of additional debt and other outstanding obligations.
Rumble Inc. (NASDAQ: RUM) recently announced financial results for the fiscal third quarter ended September 30, 2024. Q3 2024 Key Highlights and Key Items Were: Revenue for the third quarter was $25.1 million, a sequential increase of 12% from $22.5 million in the second quarter of 2024, and an increase of 39% compared to $18.0 million in the third quarter of 2023; Average global Monthly Active Users (“MAUs”) of 67 million in the third quarter of 2024, compared to 53 million in the second quarter of 2024. This represents the eleventh consecutive quarter above 40 million average global MAUs on the platform. We believe that the increase from the second quarter of 2024 is attributable to a rise in interest in political content in the third quarter of 2024. Of the 67 million MAUs, 43 million were based in the U.S. and Canada; and Average Revenue Per User (“ARPU”) for the third quarter of 2024 was $0.33, compared to $0.37 in the second quarter. Given that we are currently in the early stages of monetizing our user base, we expect to see some lag in revenue relative to users, particularly during periods of high user growth. As a result, in the third quarter Rumble saw a decrease in ARPU as revenue growth slightly lagged strong MAU growth from the lead-up to the United States presidential election.
Rumble's Chairman and CEO Chris Pavlovski commented, “It has been two years since we made our public debut, and I can honestly say that I have never been more optimistic about the opportunity in front of us. We broke records on Election Night. We delivered record revenues for the third quarter, with $25.1 million, a 39% increase compared to a year ago. On top of record revenues, our average MAUs were 67 million, the eleventh consecutive quarter of MAUs north of 40 million. The American people have spoken. Cancel culture is dead. Free Speech is now mainstream, and Rumble is in the driver’s seat with the best lineup of independent creators with the best economics.”
MicroStrategy® Incorporated (NASDAQ: MSTR) Developments – In an article published on Barrons.com, MSTR bought $561 million of Bitcoin during the past week, continuing a string of weekly purchases that began in early November.
But the latest buys amounted to one of the smallest weekly purchases over the span. They were far below the $1.5 billion announced on Dec. 16 and the $2.1 billion disclosed on Dec. 9. MicroStrategy is the world’s largest corporate holder of Bitcoin
According to a securities filing this past Monday morning, the company funded the latest purchase with equity sales of $561 million under an “at-the-market” program of sales through a nine-member underwriting group under a $21 billion authorization announced in late October.
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