The new cabinet formed by elected President Donald Trump takes a friendly stance towards cryptocurrencies, as he chooses crypto-supportive hedge fund manager Scott Bessent as Treasury Secretary, taking another step towards implementing a national Bitcoin strategic reserve. The largest listed Bitcoin whale, MicroStrategy, made a high-point purchase of Bitcoin worth $5.4 billion, prompting a wave of follow-on trading by various companies in North America.
MicroStrategy CEO Michael Saylor wrote on Monday (November 25): 'MicroStrategy has acquired 55,500 Bitcoins for approximately $5.4 billion at a price of about $97,862 per Bitcoin, achieving a year-to-date Bitcoin yield of 35.2% and a year-to-date yield of 59.3%.
'As of November 24, 2024, we acquired $386,700 in Bitcoin at a price of about $21.9 billion, or about $56,761 per Bitcoin,' he continued.
Amid the volatile swings of Bitcoin, data from CoinGlass shows that in the past 24 hours, the total liquidation amount across the cryptocurrency network reached $338 million, with long positions liquidated at $194 million and short positions at $144 million, affecting over 129,000 people.
With Trump pledging to establish a national Bitcoin strategic reserve and the new cabinet forming around crypto-friendly officials, many North American companies adopted a 'follow the leader' strategy, following MicroStrategy's lead in purchasing Bitcoin reserves.
Last Friday, biotech 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 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. Following the announcement, the company's stock price surged over 80%.
Earlier last week, biopharmaceutical company Hoth Therapeutics (HOTH) announced a $1 million Bitcoin purchase plan, causing its stock price to rise by as much as 25%—though 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) saw brief surges in their stock prices after announcing Bitcoin reserve plans in November. Only one company, Acurx Pharma (ACXP), saw a decline after announcing a Bitcoin reserve signal.
BIT Mining (BTCM) Chief Economist Youwei Yang stated: 'The recent Bitcoin craze, combined with MicroStrategy's stock price rising over 500% in 2024, has sparked a wave of companies (particularly small caps) announcing Bitcoin purchasing strategies.'
Yang pointed out that this behavior could end in a manner similar to previous bull markets: unsustainable hype followed by a sharp pullback as the market realizes that many of the announcements lack substance.
In addition to U.S. companies, Canadian health and plant-based e-commerce company Jiva Technologies has become the latest entity to implement a Bitcoin financial strategy, having previously approved a Bitcoin investment of up to $1 million by its board.
Jiva Technologies CEO Lorne Rapkin 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 times 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 launch. He stated that this 'highlights the value proposition of Bitcoin and leads us to believe it is an ideal asset for corporate finance seeking anti-inflation value storage.'
