Senator Lummis: US Government should SELL GOLD TO BUY BITCOIN | Bitcoin News by CoinCorner

Transcript

Bitcoin continues to break new all-time highs, allowing MicroStrategy to enter the top 100 largest US companies by market cap. Numerous public companies are now following the MicroStrategy playbook, adding vast quantities of Bitcoin to their balance sheets. The US government is reportedly considering selling off its vast gold reserves in favour of Bitcoin.

Welcome back to Bitcoin News, brought to you by Coin Corner. I'm your host, Alex Glass. Now, let's get straight into this week's top stories.

It’s been another huge week for price action, as Bitcoin continues to soar. Since the start of the week, the price is up around 10%, reaching new all-time highs of $98,000 as it approaches the enormous milestone of $100,000 per coin. Momentum shows no signs of slowing down. Alongside this massive price rise, Bitcoin's market cap has also climbed the ranks, with the $1.9 trillion asset now larger than JP Morgan, Visa, and MasterCard combined—a remarkable feat for a 15-year-old payment network.

Speaking of market caps, one company making headlines this week is MicroStrategy, which broke into the top 100 US companies by market cap. Currently ranked at 93rd in the US, MicroStrategy now boasts a market cap of $84 billion and seems on its way to $100 billion. The valuation surprises many, as it far exceeds the company's Bitcoin holdings of 331,000 Bitcoin, currently valued at $32 billion. The company’s unique approach of using low-cost leverage to acquire Bitcoin appears attractive to investors. Its share price is trading at a premium of over three times the net asset value, and the company's value has grown by 860% over the year, compared to Bitcoin's 170% during this rally.

Last week, founder Michael Saylor announced that the company had purchased an additional $4.6 billion worth of Bitcoin, on top of the $2 billion it acquired the week before. They are not stopping there, as this week, they announced another private offering to borrow an additional $2.6 billion in convertible senior notes at an interest rate of 0%, presumably to buy even more Bitcoin.

Speaking of Michael Saylor, it was announced this week that the chairman is set to pitch a Bitcoin-buying strategy to Microsoft's board. Saylor has agreed to present a three-minute proposal to the board of directors, following a previous attempt to meet with Microsoft CEO Satya Nadella, which was declined. Saylor remarked that Bitcoin ought to be on the agenda of every major company, especially Berkshire Hathaway, Apple, Google, and Meta, given their large cash reserves and perceived shareholder value erosion. He also noted that 98.5% of Microsoft's total company value is tied to its quarterly earnings, while only 1.5% is based on tangible assets. He argues that the stock would be more stable and less risky if half of the enterprise value were tied to tangible assets like Bitcoin. On 10 December, Microsoft shareholders will vote on whether the company should add Bitcoin to its balance sheet. However, the board of directors currently recommends voting against the proposal.

Turning to corporate adoption, this week saw a wave of public companies announcing plans to add Bitcoin to their balance sheets. These include Ho Therapeutics, LQR House, Cosmos Health, Acro Pharmaceuticals, and more. Significant acquisitions include Genesis Group purchasing $10 million worth of Bitcoin, Simula Scientific investing $17 million, and Marathon Digital planning to raise an additional $1 billion for Bitcoin acquisitions. The mere mention of Bitcoin adoption appears bullish for share prices. For example, a poll by Chris Pavlovski, CEO of the video-sharing platform Rumble, asked whether the company should buy Bitcoin. A resounding 93% of respondents voted yes, causing the company's share price to surge by 9% within an hour.

In terms of nation-state adoption, US Senator Cynthia Lummis has proposed selling some of the country's vast gold reserves to buy Bitcoin and establish a strategic reserve. Lummis suggests that the US acquire 5% of the total Bitcoin supply—amounting to 1 million coins—and hold it for a minimum of 20 years. With the US holding over 8,000 tons of gold, Lummis argues that converting a portion of this into Bitcoin would be a neutral transaction compared to spending approximately $90 billion to acquire Bitcoin outright. If this proposal comes to fruition, it would not only boost Bitcoin adoption but also signal its dominance over gold as a store of value.

Another country exploring Bitcoin adoption is Poland. Presidential candidate Sławomir Mentzen has vowed to establish a Bitcoin reserve if he wins the 2025 election. In a post on X earlier this week, Mentzen pledged to transform Poland into a cryptocurrency haven, with friendly regulations, low taxes, and supportive policies from banks and regulators. His campaign has gained traction, particularly among libertarian and right-wing voters.

Finally, following the launch of Bitcoin ETF options contracts, BlackRock's Bitcoin ETF (IBIT) saw unprecedented trading volumes of $1.9 billion on its first day. Bloomberg analyst James Saart reported that 354,000 contracts were traded on day one. Analysts believe this activity contributed to Bitcoin’s new all-time highs on 19 November. The introduction of these contracts opens access to some of the largest and most liquid financial markets globally.

That’s all for this week. As always, don’t forget to hit the subscribe button below, and we’ll see you next week for more Bitcoin News.