In a recent Reuters report, Cathie Wood opines that Bitcoin may rise by an additional $40,000 to $400,000 should more companies start to allocate cash to Bitcoins.
Wood runs and owns ARK Investment, which is one of the largest shareholder of Grayscale Bitcoin Trust. Founded in 2014, ARK has grown its AUM by leaps and bounds with its investment mandate primarily into emerging and revolutionary technologies. Some examples include cryptocurrency (obviously), space exploration and next generation internet.
Giving weight to Wood’s opinion, Tesla’s recent and famous US$1.5 billion purchase of Bitcoin has opened the door for publicly listed companies to explore Bitcoin as an alternative store of value.
With aggregate cash holdings of U.S. companies exceeding US$2 trillion, just a 1% allocation into Bitcoin would see Bitcoin price skyrocket. More companies should be joining Tesla once the U.S. SEC creates greater clarity on cryptocurrency policies and more merchants start to accept Bitcoin and other cryptocurrencies as forms of payment.
