Other companies are also turning towards Bitcoin. Hong Kong-based Boyaa Interactive recently shifted a large portion of its Ethereum holdings into Bitcoin. On the other hand, Japan's DMM Bitcoin exchange is shutting down after a devastating hack earlier this year. Meanwhile, analysts predict a bullish December for Bitcoin, though some still warn about possible corrections ahead.
Michael Saylor Sees Bitcoin as Microsoft’s Key to Future Dominance
Michael Saylor, chair of MicroStrategy and a well known advocate for Bitcoin (BTC), recently delivered a bold pitch to Microsoft’s board of directors. During this pitch, Saylor suggested that the tech giant could greatly boost its market capitalization by embracing Bitcoin.
Michael Saylors MSFT market cap estimates (Source: Michael Saylor)
In a presentation that was shared via video on Dec. 1, Saylor proposed that Microsoft could add almost $5 trillion to its value by converting its cash flows, dividends, stock buybacks, and debt into Bitcoin. The three-minute presentation was accompanied by a 44-slide deck, and mainly centered around Bitcoin as the cornerstone of Microsoft's future strategy.
Saylor argued that Bitcoin represents the next transformative wave in technology, and warned that missing it could leave Microsoft at a disadvantage. According to his projections, Bitcoin could add up to $584 to Microsoft’s share price over the next decade, assuming the crypto’s value reaches $1.7 million per BTC by 2034. This aggressive strategy will generate immense enterprise value while reducing risk for shareholders.
Michael Saylor’s MSFT share price estimations (Source: Michael Saylor)
Microsoft is the third most valuable company globally, with its valuation of $3.18 trillion. Saylor suggested that an annual investment of $100 billion into Bitcoin will be a much more lucrative alternative to stock buybacks or holding bonds.
He also mentioned the growing public and political support for Bitcoin, and referred to some pro-crypto statements from U.S. President-elect Donald Trump and recent Bitcoin-related products introduced by major Wall Street firms. He believes this is evidence of a “crypto renaissance.”
MicroStrategy’s own experience with Bitcoin has been quite successful. Since 2020, the company bought 386,700 BTC for $21.9 billion, which is an investment that is now worth close to $37.6 billion at Bitcoin’s current price. This strategy also propelled MicroStrategy’s stock price, which surged 465.5% in 2024 to reach a record high of $421.88 in November.
Saylor finished his pitch by urging Microsoft to seize the opportunity. He also framed Bitcoin not only as an investment, but as a transformative strategic asset. He even challenged the board to “do the right thing for the world and adopt Bitcoin.”
Hong Kong’s Boyaa Shifts Crypto Strategy to Bitcoin
Boyaa Interactive International, a Hong Kong-based gaming company that is known for its online card and board games, reshaped its crypto treasury strategy by converting a big portion of its Ethereum (ETH) holdings into Bitcoin. Between Nov. 19 and 28, the company exchanged 14,200 ETH, which is valued at close to $49 million, for approximately 515 Bitcoin. This move increases Boyaa's Bitcoin reserves to 3,183 BTC, worth an estimated $310.7 million at current market prices.
In a statement, the company shared that it is very confident in Bitcoin’s future prospects, and considers this a suitable time to expand its reserves by reallocating from Ethereum to Bitcoin. According to its third-quarter results, Boyaa previously held 2,635 Bitcoin and 15,388 ETH in its treasury.
This recent conversion also aligns with the company's initial $100 million crypto allocation strategy that was launched in November of 2023. The strategy earmarked $45 million each for Bitcoin and Ethereum and $10 million for stablecoins like Tether and USD Coin.
The shift happened during larger price movements in the crypto market. Over the past two weeks, Bitcoin gained more than 6%. The crypto king is also in the green by more than 36% on its monthly time frame. ETH surged by over 45% over the past month to trade at $3,629 at press time. Despite Ethereum’s stronger short-term performance, Boyaa's board chose to prioritize Bitcoin due to its strategic value for the company’s long-term plans.
BTC’s price action over the past month (Source: CoinMarketCap)
Boyaa’s stock price also saw remarkable growth after rising 874% over the past year to $0.68 (5.26 Hong Kong dollars). However, the company’s share value is still below its all-time high of $1.81.
Boyaa joined a growing list of companies increasing their Bitcoin holdings. Other firms like Rumble, Semler Scientific, and Genius Group also added Bitcoin to their balance sheets in November.
Japanese Exchange DMM Bitcoin to Liquidate
On the other hand, Japanese crypto exchange DMM Bitcoin is set to liquidate after failing to recover from a May hack that resulted in the theft of about $320 million in Bitcoin. The company announced plans to transfer customer assets to SBI VC Trade, which is an exchange operator under SBI Group, by March of 2025.
This decision was made after a basic agreement between the two firms to facilitate the transfer of all accounts and deposit assets, including both Japanese yen and crypto holdings.
The breach happened on May 30, when more than 4,500 Bitcoin were stolen through a private key hack, which the company described as an “unauthorized leak.” At the time, DMM Bitcoin assured its customers that all deposits will be fully guaranteed. The exchange also stopped withdrawals, account openings, and trading, but pledged to procure funds to compensate users. Despite these efforts, the exchange was unable to recover after the second-largest crypto hack in Japan’s history.
The stolen funds have been partially laundered. Blockchain investigator ZachXBT reported in July that around $35 million was funneled to the online marketplace Huione Guarantee. The laundering techniques and indicators suggest that North Korea’s Lazarus Group may have orchestrated the attack.
DMM Bitcoin, which was launched in January of 2018 under the ownership of Japanese e-commerce giant DMM Group, faced seven more challenges over the past few months. In November, it discontinued its Seamoon Protocol, a Web3 gaming and anime content initiative, because of rapid changes in the business environment. The firm also shelved plans to issue a stablecoin in partnership with Progmat.
The collapse of DMM Bitcoin is part of a broader trend of centralized exchange hacks in 2024. The year saw some major incidents that affected platforms like WazirX in India, BingX in Singapore, and BtcTurk in Turkey, resulting in combined losses of hundreds of millions of dollars.
December Bull Run Expected
Those companies taking advantage of Bitcoin might reap the rewards of their decision soon. Bitcoin may be entering a price discovery phase that could signal potential "insane long opportunities" in the months ahead, according to analysts. Daan Crypto Trades, a trader and analyst, said on Dec. 2 that Bitcoin maintained a position above its previous all-time high for nearly a month, which signals the start of its price discovery phase for this cycle.
By drawing parallels to past cycles, the analyst pointed out that Bitcoin surged by 1,600% during the 2017 bull market and 245% during the 2021 bull market. Even a modest repeat of half the 2021 gains could push Bitcoin’s price to around $150,000.
Price discovery is where an asset’s fair market value is established through buyer and seller interactions, and it usually begins when it trades above previous highs. Charles Edwards, founder of Capriole Fund, believes there is a lot of potential for returns during this phase, especially as each cycle historically delivers 4-7 months of exceptional price discovery gains. He also pointed out that November was the first of these months, with Bitcoin gaining 40% and breaking monthly candle records.
December is historically a bullish month for Bitcoin, with average gains of about 10%. Markus Thielen, founder and CEO of 10x Research, pointed out that during halving years, December returns have been particularly strong, averaging 28% across 2012, 2016, and 2020.
John Glover, chief investment officer at Ledn, is not as optimistic about the month ahead, and suggested that while momentum could drive Bitcoin toward $125,000, a larger correction is still a possibility. He did reassure traders that a drastic sell-off is unlikely unless Bitcoin breaches the March 2024 high near $74,000.
