Golden Finance reported that Simon Gerovich, the CEO of Metaplanet, a Japanese listed company that adopts the Bitcoin Treasury strategy, expressed his unique insights on the volatility of Bitcoin on the X platform (formerly Twitter). He clearly pointed out that volatility is not a Bug of Bitcoin, but rather a crucial signal and the energy and “fuel” that drives the development of Bitcoin.
In Gerovich’s view, the volatility of Bitcoin drives the “flywheel” of its development. The fluctuations in market prices have prompted investors to constantly adjust their strategies, and this dynamic change has accelerated the accumulation process of Bitcoin. For instance, when the price of Bitcoin rises sharply, it will attract more investors to enter the market and drive more funds into the Bitcoin market. When the price drops, some investors, expecting a future price rebound, take the opportunity to increase their holdings, which also promotes the circulation and concentration of Bitcoin.
Furthermore, Gerovich emphasized that the volatility of Bitcoin has a strong appeal to capital. Higher price fluctuations mean greater profit margins, which is highly attractive to investors and capital seeking high returns. Take some professional cryptocurrency investment institutions as an example. They are good at taking advantage of the price fluctuations of Bitcoin and reaping substantial profits through precise swing trading. This inflow of capital has further promoted the development of the Bitcoin ecosystem, including the birth of more related services and the improvement of infrastructure.
Metaplanet’s own active layout in the Bitcoin field is a powerful practice of this view. The company continuously raises funds by issuing bonds and other means for purchasing Bitcoin. Just recently, Metaplanet announced the issuance of zero-coupon bonds worth 50 million US dollars, which were subscribed by the Cayman Islands investment company Evo Fund. Previously, it has also carried out several similar financing activities, such as raising 25.9 million US dollars in February, 13.3 million US dollars in March, and 25 million US dollars earlier in May. Its goal is to hold 10,000 Bitcoins by the end of 2025. As of now, it has held approximately 7,800 Bitcoins, ranking 11th among enterprises in terms of Bitcoin holdings, with an average purchase price of $91,340 per coin.
Globally, enterprises like Metaplanet that attach great importance to Bitcoin are not isolated cases. GameStop, an American retailer of video games and consumer electronics, confirmed its first investment in Bitcoin on May 28th, purchasing 4,710 Bitcoins. Trump Media and Technology Group (TMTG) also announced that it will raise 2.5 billion US dollars through private equity financing to build a Bitcoin Treasury. The actions of these enterprises reflect that despite the sharp fluctuations in Bitcoin’s price, its unique value attributes and potential returns are attracting an increasing number of enterprises to include it in their asset allocation.
From the perspective of market data, since its birth, the price trend of Bitcoin has indeed been full of volatility. During certain time periods, its price may experience a significant increase or decrease. For instance, at the end of 2017, the price of Bitcoin experienced a wild surge and once approached $20,000. In 2018, it suffered a significant pullback, with prices halved and halved again. But in the long term, the overall price of Bitcoin shows an upward trend. This coexistence of volatility and growth precisely confirms Gerovich’s view that volatility has played an indispensable role in the development of Bitcoin. It is not only a manifestation of market vitality but also an important factor in promoting Bitcoin towards wider application and recognition.
Related Topics:
