Cryptocurrency Information Bureau News: Raises 250 billion yen! Fold Holdings expands bitcoin holdings. What is its strategy? #Bitcoin #Cryptocurrency #FoldHoldings
Video explanation
Bitcoin is becoming more and more popular?! Fold raises huge amount of funds to buy more Bitcoin!
Hello, I'm John, your tech-next-door guy!
Recently, you may have heard words like "blockchain" and "Bitcoin" a lot, but you may have thought they sound difficult to understand. Don't worry! Today, I'll be bringing you some interesting news about Bitcoin in an easy-to-understand way, so that you can understand it with a clear "Oh, so that's what it is!" feeling.
This time, I would like to introduce to you the news that a company called "Fold Holdings" (the name of the company) has succeeded in raising a huge amount of money to buy more Bitcoin (a kind of digital money that can be used on the Internet). What on earth is this all about? Let's take a look together!
What kind of company is Fold Holdings?
First, a little bit about Fold Holdings. This company is actually a bit unique, offering a service that allows you to earn Bitcoin points for everyday shopping. For example, if you use your credit card at a partner store, you will gradually accumulate Bitcoin instead of cash or points. That's the idea.
It's a pioneering company that is working hard to make Bitcoin more familiar to our daily lives.
What on earth is this "$2 million equity facility"?
Now, here is the main topic. Fold Holdings is the largest$2 billionApparently they signed a contract to raise a total of 350 billion yen! In Japanese yen, that would be about 400 to XNUMX billion yen. (It depends on the exchange rate, but it's a huge amount!)
This method of raising money is called an "equity facility". Another big word!
But don't worry. Simply put, this isThe right to receive money when needed in exchange for a promise to hand over a portion of a company's stock in the future"It's something like that.
There are various ways for companies to collect money, but this is a convenient system that allows the company to withdraw money flexibly up to the contracted maximum amount whenever it feels that it needs it, rather than receiving the entire amount at once.
To put it in perspective, it's like a "magic piggy bank." When a company needs money to take on a new challenge, it puts its value into the piggy bank, saying "Our company has great future prospects!" (i.e., it is willing to provide some of the company's stock), and money pours out from investors. However, it is a little different from borrowing money from a bank; in this case, you give some of your rights as an owner of the company (stock) to the investor little by little.
Why do we need such a large amount of money? The purpose is to expand the "Bitcoin Treasury"!
So why is Fold Holdings trying to raise such a large amount of money?
The main purpose is toBuy Bitcoin to hold more assets for the company" That's it!
In technical terms, this is called "expanding the Bitcoin Treasury." A "treasury" is like a "safe" or "wallet" where a company keeps its valuable money and assets. In other words, Fold Holdings wants to store more and more Bitcoin in their company's safe.
Why would a company hold Bitcoin as an asset?
- Expectations for future price increases: Bitcoin prices go up and down, but an increasing number of companies are expecting that it may become even more valuable in the long run. It's an investment for the future.
- Recognition as an asset for the new era: Until now, the assets held by a company were generally cash, land, gold, etc. However, recently, the idea that digital assets such as Bitcoin may become one of the important assets of the future is spreading.
- Preparing for inflation (decrease in the value of money): Some companies hold Bitcoin to prepare for a situation known as "inflation," in which prices rise and the value of money effectively decreases.
Fold Holdings is a company that originally provided Bitcoin-related services, so it seems they believe in Bitcoin's future and potential more than anyone else!
What does this news mean for us?
It would be a shame to end this story with just "Oh, so a company called Fold is buying a lot of Bitcoin." In fact, there are several interesting points about this news for us.
- Could this lead to increased trust in Bitcoin?
The move by large companies to actively purchase Bitcoin as an official company asset may be evidence that Bitcoin is gradually being recognized by society as a valuable asset, rather than something "slightly suspicious" as some say. - Will this lead to Bitcoin becoming more accessible?
If companies like Fold Holdings expand and grow, there is a possibility that more services using Bitcoin will become available and that they will become easier to use. If that happens, we may naturally have more opportunities to come into contact with Bitcoin in our daily lives! - Maybe other companies will follow suit?
When a company makes a new move, it is common for other companies to think, "Oh, that's good! Maybe my company should try it too?" Looking at Fold Holdings' move this time, other companies may start thinking, "Maybe I should hold Bitcoin in my company's assets too." If that happens, there is a possibility that Bitcoin will become even more popular. - What impact will this have on the Bitcoin market?
When companies use large amounts of capital to purchase Bitcoin, it means that the demand for Bitcoin increases. It is difficult to say whether this will directly push up the price because various factors are involved, but it is often seen as good news for the market as a whole.
Of course, there are many things to be careful about when it comes to Bitcoin, such as the risk of large price fluctuations. But isn't it exciting to learn little by little about new technology and the future shape of money through news like this?
John's comment
Personally, I think the news about Fold Holdings is a bit of a surprise. The trend of companies holding Bitcoin as company assets has been progressing little by little over the past few years, but this major fundraising seems to indicate that the trend is accelerating even further. Fold is originally a Bitcoin-related company, so in a sense this may be a natural move, but I would like to continue to keep an eye on whether this will spread to other industries that are not directly related. The day when Bitcoin becomes more naturally integrated into our lives may not be so far away!
This article is based on the following original articles and is summarized from the author's perspective:
Fold Holdings Secures $250 Million Equity Deal to Expand
Bitcoin Treasury