"Corporate Bitcoin Purchases Support Downside Price Stability"

On May 9, NH Investment & Securities analyzed that Bitcoin purchases by general listed companies are a positive factor for Bitcoin demand and serve as a support for the downside of its price.

Hong Sungwook, a researcher at NH Investment & Securities, explained in a report titled "Business Overview: Bitcoin Purchases" published on this day, "The increasing number of companies adopting a Bitcoin purchase strategy is a factor that supports the downside of Bitcoin prices."

Researcher Hong stated, "Recently, the stock price of Strategy (formerly MicroStrategy, MSTR), which purchases Bitcoin through rights offerings and convertible bond (CB) issuances, has attracted market attention," adding, "With the Trump administration taking a pro-Bitcoin stance, numerous companies are emerging that are modeling themselves as the 'second Strategy.'"

He said, "The increase in companies implementing Bitcoin purchase strategies is positive for Bitcoin demand," and added, "After the announcement of Bitcoin purchase plans, the stock prices of listed companies tend to rise in the short term."

Researcher Hong emphasized, "For companies that purchase Bitcoin to outperform spot Bitcoin over the mid- to long-term, it is necessary for their BPS to consistently increase."

He further explained, "In Korea, starting in the second half of the year, listed corporations and corporations registered as professional investors will be able to purchase Bitcoin through exchanges," and added, "If general listed corporations have cash that is not used for a long period, they can theoretically hedge the Korean won and preserve asset value by purchasing Bitcoin."

This content was produced with the assistance of AI translation services.