This ‘unheard of’ first day of options trading helped push Bitcoin’s price to a new all-time high. Meanwhile, Michael Saylor is set to pitch Bitcoin investments to Microsoft's board as there is growing corporate interest in Bitcoin adoption. Companies like Rumble are also considering expanding their BTC holdings. Bitfinity Network also recently introduced a Bitcoin layer-2 solution that takes advantage of Internet Computer Protocol’s Chain Fusion Technology to bring DeFi functionality to Bitcoin.
Bitcoin ETF Options Trading Shatters Expectations
The launch of options trading for BlackRock’s iShares Bitcoin Trust (IBIT) spot Bitcoin ETF was not only a huge milestone, but it also propelled Bitcoin’s price to a new all-time high. This groundbreaking approval for options trading led to almost $1.9 billion in notional exposure on the first day, with 354,000 contracts traded. Of these, 289,000 were call options, while 65,000 were put options, which represented a call-to-put ratio of 4.4:1, according to Bloomberg Intelligence ETF analyst James Seyffart.
IBIT’s impressive trading volume far outpaced previous benchmarks. For comparison, the ProShares Bitcoin Strategy ETF (BITO) achieved $363 million on its first day of options trading. Bloomberg senior ETF analyst Eric Balchunas described the debut as "unheard of for Day One," although he did notice that IBIT's $1.9 billion still falls short of the $5 billion that was traded by gold ETF GLD on the same day. He still believes there is potential for IBIT to scale in the coming weeks as trading limits expand and investor interest grows even more.
The surge in options trading activity coincided with Bitcoin’s price reaching a record $93,900 during the day, before settling at approximately $91,697, up 0.48% in 24 hours. Market structure expert Dennis Dick suggested that the introduction of options could help reduce Bitcoin’s historically high volatility. As open interest in these options increases, it creates a more balanced market with greater liquidity, ultimately stabilizing price movements.
Bitcoin’s price action over the past 24 hours (Source: CoinMarketCap)
After the success of IBIT, options trading for Bitcoin ETFs from Bitwise and Grayscale are set to begin trading on Nov. 20. Other offerings are also expected to enter the market soon.
Saylor to Pitch Bitcoin Investment to Microsoft Board
Bitcoin is also turning the heads of major companies interested in its advantages. In fact, Bitcoin advocate and MicroStrategy Chairman Michael Saylor agreed to present a three-minute proposal to Microsoft’s board of directors on the potential benefits of investing in Bitcoin.
The opportunity arose from an activist shareholder’s proposal, which Saylor confirmed during a Nov. 19 X Spaces session that was hosted by VanEck. While Saylor initially proposed a confidential meeting with Microsoft CEO Satya Nadella to discuss the matter, his offer was declined. Instead, Saylor will present his proposal directly to the board.
Microsoft recently revealed that one of its December voting items will involve assessing the possibility of investing in Bitcoin. The proposal for this vote was driven by the National Center for Public Policy Research (NCPPR), and detailed MicroStrategy’s success with its Bitcoin investment strategy. It even pointed out that MicroStrategy’s stock outperformed Microsoft by over 300% this year despite its smaller business scale. The NCPPR also mentioned that companies with large cash reserves, like Microsoft, Apple, and Meta, could really benefit from incorporating Bitcoin into their portfolios.
Saylor believes that diversifying into Bitcoin could make Microsoft’s stock a lot more stable and less risky. He pointed out that 98.5% of Microsoft’s enterprise value is tied to its quarterly earnings, while only 1.5% is based on tangible assets. Saylor believes that adding Bitcoin to Microsoft’s holdings will create a more balanced and resilient asset base.
The proposal is scheduled for a shareholder vote on Dec. 10, but Microsoft’s board recommended voting against it because the company already evaluates a wide range of investable assets, including Bitcoin. Ethan Peck, deputy director of the NCPPR’s Free Enterprise Project, suggested that conducting the assessment could put Microsoft in a challenging position if it ultimately decides not to invest in Bitcoin.
Microsoft’s board currently consists of 12 members, including CEO Satya Nadella and executives from companies like The Walt Disney Company, Citigroup, and Wells Fargo.
Rumble Stock Jumps on Bitcoin Adoption Buzz
Rumble Inc. is a video-sharing platform known for its more lenient content moderation and popularity among far-right and conspiracy-leaning groups, and is also considering adding Bitcoin to its balance sheet. The company’s founder and CEO, Chris Pavlovski, started the conversation with a poll on X, where close to 34,000 respondents overwhelmingly supported the idea.
Naturally, this move got a lot of attention from the crypto community, including endorsements from Strike CEO Jack Mallers and MicroStrategy Chairman Michael Saylor, who even offered guidance on implementing such a strategy.
After Pavlovski’s poll, Rumble shares saw an impressive uptick, and even jumped as much as 5% in after-hours trading on Nov. 19 to hit a high of $5.98 before stabilizing at $5.68. The company operates both in Florida and Ontario, and began trading on Nasdaq in September of 2022. It currently has about 67 million monthly active users. Its cloud services arm also hosts Truth Social, which is a platform owned by Donald Trump.
Rumble Inc share price (Source: Google Finance)
Rumble’s cash equivalents and marketable securities totaled $132 million as of Sept. 30, 2024, while its third-quarter revenue grew 39% year-on-year to $25 million. However, its Q3 earnings fell short of analyst expectations as the revenue missed estimates by 14% and earnings per share falling 20%.
If Rumble decides to continue with Bitcoin adoption, it will join an expanding list of companies embracing the cryptocurrency. Genius Group also recently started a “Bitcoin first” strategy after buying 110 Bitcoin for $10 million. It plans to allocate 90% of its reserves to Bitcoin. Japan-based Metaplanet added $11.3 million worth of Bitcoin to its stockpile, bringing its total holdings to 1,142.2 BTC. Additionally, Semler Scientific increased its Bitcoin reserves to 1,273 BTC with a $17.7 million purchase.
Bitfinity Network Brings DeFi to Bitcoin
Meanwhile, a newly launched Bitcoin layer-2 (L2) solution called Bitfinity Network, debuted with $12 million in funding to bring Ethereum Virtual Machine (EVM)-compatible decentralized finance (DeFi) functionality to Bitcoin. It is supported by institutional investors like Polychain and ParaFi, as well as $5 million raised through community-driven over-the-counter (OTC) token sales. One of the main goals of the platform is to expand Bitcoin’s utility beyond being just a store of value.
By using Internet Computer Protocol’s (ICP) Chain Fusion Technology, Bitfinity makes it possible for Bitcoin-native assets to operate in an Ethereum-compatible ecosystem. This integration is a massive step when it comes to broadening Bitcoin’s applications.
The funding round secured $7 million from high-profile investors, including Polychain’s Beacon Fund, ParaFi, Draft Ventures, and Warburg Serres. Additionally, grassroots contributors and crypto influencers played a pivotal role in raising $5 million.
Bitfinity’s side-chain infrastructure is designed to improve scalability, enable cross-chain functionality, and support a broader range of applications for Bitcoin. Its security architecture employs a proof-of-stake protocol that is reinforced by Chain-Key technology, which facilitates large signing committees that are capable of handling Bitcoin Schnorr and ECDSA transactions.
The ecosystem plans to host decentralized applications (DApps) like Sonic, Chapswap, Lendfinity, and Omnity Bridge. Backed by the founder of Liquity, a billion-dollar total value locked (TVL) borrowing and lending protocol, Bitfinity intends to introduce similar solutions to its platform soon. The Internet Computer Protocol’s Chain Fusion technology has seen a huge increase in usage, and grew 1,230% year-over-year, driven by BTC-native applications like Rainbow Protocol, Tap Protocol, and Bitfinity.
