{"id":446391,"date":"2020-10-14T12:44:54","date_gmt":"2020-10-14T12:44:54","guid":{"rendered":"https:\/\/uniquehot.com\/?p=446391"},"modified":"2024-06-11T14:07:03","modified_gmt":"2024-06-11T14:07:03","slug":"stone-ridges-10k-bitcoin-bet-shows-changing-sentiment-of-corporate-america","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/stone-ridges-10k-bitcoin-bet-shows-changing-sentiment-of-corporate-america\/","title":{"rendered":"Stone Ridge’s 10k Bitcoin Bet Shows Changing Sentiment of Corporate America"},"content":{"rendered":"

New York-based asset managers Stone Ridge<\/a> confirms 10k Bitcoin ($115 million) holding in its treasury.<\/p>\n

Stone Ridge purchased the Bitcoin via subsidiary firm New York Digital Investment Group (NYDIG)<\/a>, one of the few companies with a BitLicense issued by the New York State Department of Financial Services (NYSDFS)<\/span>.<\/p>\n

Stone Ridge becomes the latest high profile corporation to announce a move into Bitcoin.<\/p>\n

MicroStrategy<\/a> broke the internet last month when it announced a change in its treasury policy to include Bitcoin. To date, it has converted $425 million of cash into BTC.<\/p>\n

Not to be outdone, Jack Dorsey’s Square<\/a> soon followed. They announced spending $50 million in making the switch.<\/p>\n

The U.S Economy is on the Ropes<\/h2>\n

It doesn’t take a genius to know that the macroeconomic picture looks bleak. In response to the downturn, the Federal Reserve has come out, all guns blazing, by adding a total of $3 trillion<\/a> to the money supply.<\/p>\n

At the start of 2020, the Fed’s total assets came to a little over $4.1 trillion. Since then, the Fed’s reckless spending has ballooned its balance sheet to $7 trillion, a 71% increase in ten months.<\/p>\n

\"\"<\/p>\n

Source: federalreserve.gov<\/a><\/pre>\n
The knock-on effects of an out of control balance sheet have yet to be fully felt. But critical metrics, including debt-to-GDP, give insight into what is coming.<\/p>\n
Debt-to-GDP measures a country’s public debt against its gross domestic product<\/a> (monetary value of what the country generates in finished goods and services.)<\/p>\n
A country that is able to service the interest on its debt is considered stable. However, a high debt-to-GDP ratio (anything over 100) indicates trouble paying off external debt.<\/p>\n
The latest data from the IMF shows the U.S. has a debt-to-GDP of 131.07. Of the developed nations, only Portugal (134.95), Italy (155.54), Greece (200.75), and Japan (251.91) are greater.<\/p>\n
\"debt-to-gdp<\/p>\n
Source: imf.org<\/a><\/pre>\n
As such, Bitcoin is starting to gain wider public attention on the grounds of it being a deflationary and scarce asset.<\/p>\n
Bitcoin Hailed as the Answer to Dire Economic Woes<\/h2>\n
A ballooning Fed balance sheet and high debt-to-GDP ratio are facts that have not escaped the attention of corporate America.<\/p>\n
On that, MicroStrategy CEO Michael Saylor<\/a> spoke candidly about his inflation concerns. But more than that, during these uncertain times, Saylor simply sees Bitcoin as better than cash.<\/p>\n
“MicroStrategy<\/span> has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.”<\/p><\/blockquote>\n
What’s more, with no solution in sight, Saylor believes the floodgates have opened, and more corporations will eventually make the move into Bitcoin.<\/p>\n
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As the trillions of dollars on the balance sheets of banks, asset managers, insurance firms, endowments, & family offices begin their migration to the #Bitcoin<\/a> universe, they will need firms like NYDIG to guide them.  $1 billion down, more to go.https:\/\/t.co\/YObDOGTX7Y<\/a><\/p>\n
— Michael Saylor\u26a1\ufe0f (@saylor) October 13, 2020<\/a><\/p><\/blockquote>\n