After Tesla’s $1.5 billion acquisition of Bitcoin, many in the crypto-community anticipated more Fortune 500 companies to follow suit soon. In reality, a host of names like Apple, Oracle, and Microsoft were rumoured to be next in line.
However, according to a senior member of its executive team, Microsoft’s technology giant is unlikely to invest in Bitcoin any time soon. During a recent interview with CNN’s Julia Chatterley, President Brad Smith announced that the company has not yet made any changes to its investment strategy, with Microsoft having no specific plans to invest in the digital asset.
“I haven’t heard any new conversation about Bitcoin.”
It should be noted, however, that unlike Microsoft, other companies might be more likely to invest in cryptocurrencies such as Bitcoin, particularly because most of them seek to mitigate any downside risk to their earnings.
As mentioned earlier, a lot of names have been thrown to address the hypothetical company that will be next. For example, according to Bobby Ong of CoinGecko,
“In my opinion, the next company to look out for will be Twitter. Its CEO, Jack Dorsey, is a known proponent of Bitcoin. The other company he leads, Square had already purchased $50 million worth of Bitcoin in 2020. Following on, I would expect other Big Tech companies such as Facebook, Alphabet, and Amazon to invest in Bitcoin.”
As things stand, most U.S. businesses, such as Tesla, use ‘indefinite intangible accounting.’ This ensures that any depreciation of the fair value of digital assets retained on the company’s balance sheet below their carrying values following purchase is expressed in a ‘impairment fee.’
Companies are therefore not required to accept any upward price revisions until the asset has been sold. This may be why Square allocated just 2 per cent of its cash reserves to Bitcoin and Tesla allocated about 8 per cent – a fact that Avanti Founder Caitlin Long recently touched upon.
The Parabolic SAR dotted markers highlighted the downtrend of Waves after the cryptocurrency snapped the local peak at $12.9. At the time of the press, the market bulls kept on to the $10-mark after the pressure of purchasing had picked up. In addition, the RSI settled below 50 as the price attempted to rebound on the charts.
A favourable result may have seen WAVES rise to $11.3 above its upper ceiling. If the downtrend persists in the next few sessions, the next level of support will be $8.9.
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