Today in crypto, a publicly traded company headquartered in Canada invested in Bitcoin (BTC) and other cryptocurrencies, Bitcoin miner Hut 8 announced a $100 million purchase of BTC, increasing its holdings to over $1 billion, and Bitcoiners and critics clashed over whether BTC’s 21 million fixed supply is truly guaranteed.
Biopharma company invests in Bitcoin, other tokens
Canadian biopharmaceutical company Quantum BioPharma (QNTM) has added Bitcoin and other cryptocurrencies to its balance sheet.
According to the Dec. 20 announcement, Quantum BioPharma purchased $1 million worth of BTC and other undisclosed cryptocurrencies.
“The company is now set up to receive financing in cryptocurrencies as well as executing other types of transactions in cryptocurrencies,” Quantum said in a statement.
QNTM stock experiences heavy volatility on Dec. 20. Source: Yahoo Finance
Investors didn’t take too kindly to the news, as QNTM stock plunged more than 13% on Dec. 20. However, QNTM is a nanocap stock, which means it’s prone to volatility. Its market cap currently sits at around $6 million.
Public and private companies have sought exposure to Bitcoin as a treasury strategy to offset the effects of inflation. In November, e-commerce firm Jive Technologies approved a plan to add up to $1 million in BTC to its balance sheet. The same month, video-sharing platform Rumble announced plans to add Bitcoin to its corporate treasury.
Hut 8 surpasses $1 billion in Bitcoin holdings
Hut 8, one of North America’s largest Bitcoin miners, has announced a $100 million purchase of Bitcoin, increasing its holdings to over $1 billion.
The company announced on Dec. 19 that it acquired 990 Bitcoin (BTC) for approximately $100 million at an average cost of $101,710 per coin, according to a press release.
The purchase aligns with Hut 8’s strategy of combining low-cost Bitcoin production with opportunistic market buys to maximize returns and establish BTC as a reserve asset.
The expansion of Hut 8’s BTC reserve continues a growing trend among institutions as the option to include BTC as a strategic financial portfolio asset becomes more attractive, particularly as the United States prepares for a pro-crypto administration under President-elect Donald Trump.
Hut 8 total BTC holdings held in reserve and market value. Source: GlobeNewswire
Hut 8 CEO Asher Genoot said that the company’s strategic BTC reserve is a “key component” of its treasury strategy and aligns with its capital and operating strategies.
“As we scale operations and extend our cost advantage in Bitcoin production, we anticipate that the flywheel effect will enable us to grow our holdings organically at a significant discount to market prices,” the Hut 8 CEO said.
BlackRock sparks Bitcoin 21 million debate, saying “no guarantee” it won’t change
Debate whether Bitcoin’s 21 million supply cap is truly fixed or not has resurfaced after BlackRock posted a three-minute Bitcoin explainer video, which added a disclaimer that there’s no guarantee it won’t be changed.
In the Dec. 17 video, BlackRock explained that Bitcoin has a fixed supply of 21 million, adding that the “hard-coded rule controls supply, purchasing power and helps avoid the potential misuse of printing more and more currency.”
However, it also added a disclaimer that read: “There is no guarantee that bitcoin’s 21 million supply cap will not be changed.”
The video has since been reposted by MicroStrategy chairman and Bitcoin bull Michael Saylor, leading some critics to suggest that Bitcoin (BTC) isn’t theoretically scarce after all.
However, Super Testnet, a Bitcoin developer behind BitVM, argues that any change to Bitcoin’s supply cap would effectively mean the new token isn’t the “official” Bitcoin.
South Korean lawmaker could face jail time for not reporting crypto holdings
A lawmaker in South Korea could face six months in prison for allegedly refusing to report $4 million in crypto sales.
According to local media reports, prosecutors are seeking a six-month prison sentence for National Assembly member Kim Nam-kuk, who allegedly reported 1.2 billion Korean won worth of digital assets in 2021, despite owning 9.9 billion worth of crypto. He is also alleged to have concealed roughly 990 million won worth of digital assets in 2022.
Prosecutors said Kim “obstructed the National Assembly Ethics Committee’s review of the National Assembly member’s assets in a false manner” by not declaring the full value of his crypto holdings.
When the allegations surfaced in 2023, Kim stepped down from the Democratic Party.
South Korea has faced political turmoil in recent weeks, with President Yoon Suk Yeol declaring martial law on Dec. 3. The declaration sent Bitcoin’s price crashing on local exchanges.
