Many people in the cryptocurrency world are too close to see clearly. In fact, on an international scale, Bitcoin is no longer just a niche alternative speculative asset.
Last month, at a conference in Taiwan, I spoke with local practitioners about the recently popular narrative and learned that more and more traditional industries are moving into crypto through DATs.
DAT stands for Digital Asset Treasury.
Simply put, it means companies are integrating cryptocurrencies into their balance sheets, viewing them not as speculative assets but as a long-term asset allocation strategy.
What surprised me was that many unrelated industries are also experiencing widespread penetration. Perhaps this is one of the driving forces behind Bitcoin's rise this cycle.
Nocera (Nasdaq NCRA) is a very typical case in Taiwan. Originally a manufacturer of aquaculture equipment, its main business was recirculating aquaculture systems.
But in July of this year, it announced its official entry into the cryptocurrency market, planning to allocate part of its assets to digital asset reserves.
In other words, a company that sells fish is becoming a company that holds cryptocurrency, and investors in its stock are indirectly holding Bitcoin.
There are many similar examples.
For example, the well-known Apple car, Tesla, will be launched in 2021. In 2017, it purchased $1.5 billion worth of Bitcoin for inflation hedging and cash management. It subsequently sold $900 million, leaving a current book value of $1.2 billion.
For example, GameStop, the gaming retailer at the center of the retail investor war against Wall Street, announced its allocation to crypto assets in March of this year, sending its stock price soaring 18% that day.
Every bull market has its own "value carrier," or in other words, the narrative that supports Bitcoin's trillion-dollar market cap.
The last cycle attracted liquidity from individual and small institutional investors worldwide through DeFi. This cycle will likely stimulate purchasing demand from traditional businesses through DAT.
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