The "new cabinet" formed by elected President Donald Trump holds a friendly stance towards cryptocurrency, having chosen crypto-supporting hedge fund manager Scott Bessent as Treasury Secretary, moving closer to establishing a national Bitcoin strategic reserve in the U.S. The largest publicly listed Bitcoin whale, MicroStrategy, increased its position with a $5.4 billion Bitcoin purchase, sparking a wave of follow-the-leader trading among several North American companies.
MicroStrategy CEO Michael Saylor wrote on Monday (November 25): "MicroStrategy has acquired 55,500 Bitcoins at an average price of about $97,862 per Bitcoin for approximately $5.4 billion, achieving a Bitcoin yield of 35.2% year-to-date and 59.3% for the quarter so far."
"As of November 24, 2024, we acquired $386,700 in Bitcoin at an average price of approximately $21.9 billion, or about $56,761 per Bitcoin," he continued.
Amid the volatile movements of Bitcoin, according to CoinGlass data, the total liquidation amount across the cryptocurrency network reached $338 million in the past 24 hours, with long positions liquidated for $194 million and short positions liquidated for $144 million, affecting over 129,000 people.
With Trump committing to establishing a national Bitcoin strategic reserve and the formation of a new cabinet centered around crypto-friendly officials, multiple North American companies have adopted a "follow-the-leader" strategy, quickly following MicroStrategy's lead in buying Bitcoin reserves.
Last Friday, biotechnology company Anixa Biosciences (ANIX) announced that its board approved the purchase of a certain amount of Bitcoin to diversify the company's cash reserves.
Meanwhile, fitness equipment company Interactive Strength (TRNR) announced on Thursday that after its board approved the use of cryptocurrency as a treasury reserve asset, the company plans to purchase up to $5 million worth of Bitcoin. After the announcement, the company's stock price surged more than 80%.
Earlier last week, biopharmaceutical company Hoth Therapeutics (HOTH) announced a Bitcoin purchase plan worth $1 million, causing its stock price to rise by as much as 25%—although nearly the entire gain was erased by the close.
Similarly, companies including LQR House (LQR), Cosmos Health (COSM), Nano Labs (NA), Gaxos (GXAI), Solidion Technology (STI), and Genius Group (GNS) also saw brief surges in stock prices after announcing Bitcoin reserve plans in November. Only one company, Acurx Pharma (ACXP), saw its stock drop after signaling Bitcoin reserves.
BIT Mining (BTCM) chief economist Youwei Yang stated: "The recent Bitcoin craze, coupled with MicroStrategy's stock price increase of more than 500% in 2024, has sparked a wave of companies (especially small-cap stocks) announcing Bitcoin purchase strategies."
Yang noted that this behavior may end in the same way as previous bull markets: unsustainable speculation followed by a significant pullback as the market realizes that many of the announcements lack substance.
In addition to American companies, Canadian health and plant-based e-commerce company Jiva Technologies has become the latest enterprise to implement a Bitcoin financial strategy, with the board approving a Bitcoin investment of up to $1 million.
Lorne Rapkin, CEO of Jiva Technologies, stated: "As Bitcoin continues to gain attention as a widely accepted and trusted asset class, we see a unique opportunity to strengthen our funds through resilient and innovative investments."
He added that Bitcoin's "inherent scarcity and limited supply make it a modern inflation hedge and a safe haven during periods of economic uncertainty."
He pointed to a favorable regulatory framework and the potential for increased institutional adoption, emphasizing the recent influx of Bitcoin spot ETFs, with total inflows exceeding $30 billion since their launch. He stated that this "highlights Bitcoin's value proposition and makes us believe that it is an ideal asset for corporate finance seeking inflation-resistant value storage."
