Bitcoin monthly digest: December 2023

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As December (and 2023) is now behind us, we're excited to bring you the latest edition of our monthly Bitcoin newsletter – a perfect way to stay updated on all things Bitcoin entering the new year! If you've been caught up with family events and huge celebratory parties and missed out on Bitcoin news last month, fear not – you're in the perfect spot to catch up. Let's explore and uncover the highlights together!

• The ETFs are (finally) here!

The United States Securities and Exchange Commission (SEC) has granted official approval for the listing of 11 distinct spot Bitcoin Exchange-Traded Funds (ETFs). This decision is a pivotal moment in the integration of Bitcoin into traditional financial markets and the introduction of spot Bitcoin ETFs in the United States is poised to create unprecedented opportunities for institutional and retail investors, offering a more accessible channel to participate in the growing Bitcoin market. Market participants anticipate a new era in the investment landscape, shaped by the integration of bitcoin into mainstream portfolios, including very conservative investment funds like endowments and pensions.

Industry analysts anticipate that the approval of these ETFs will trigger an influx of institutional capital into Bitcoin, potentially driving BTC's value to new record highs and solidifying its status as a legitimate asset class. The ETFs launched on Thursday January 11, as investors eagerly awaited their debut on major stock exchanges, expecting them to influence market dynamics and investor sentiment. The SEC's decision reflects a notable shift in regulatory perspective towards embracing bitcoin-related investment vehicles, signifying increased acknowledgment and acceptance within the traditional finance world. This approval is also likely to pave the way for future developments in other bitcoin-related products, potentially offering a broader range of BTC-based financial instruments for investors.

• Bitcoin mining: a helping hand to Africa's infrastructure problems?

Access to electricity is a luxury often taken for granted, but Sub-Saharan Africa faces a severe deficit, with over 600 million people without power. Bitcoin mining, despite its environmental controversies often driven by a misrepresentation of the energy mix that fuels the process, can be a solution to electrify underserved areas by harnessing stranded energy in remote locations. The documentary "Stranded: A Dirty Coin Short" sheds light on how Bitcoin mining repurposes stranded power, supporting power plant construction and electrical grid development.

The process monetizes excess energy in regions with limited demand, acting as a financial catalyst for critical infrastructure, challenging perceptions of energy's societal impact. Critics highlight Bitcoin's energy consumption, but a nuanced understanding is needed, as the electricity used for mining is often otherwise unavailable for other uses (i.e., "stranded"), or in excess with respect to the demand, thus driving the price negative. Bitcoin mining incentivizes the exploration of cost-effective energy harnessing, potentially sparking an energy revolution. The financial impetus could drive a convergence where efficient miners become energy producers, challenging the traditional power grid model.

• Bitcoin as a strategic reserve asset

MicroStrategy, a SaaS business intelligence and consulting company, has reinforced its commitment to Bitcoin by acquiring an additional 14,620 BTC at a total cost of $615.7 million. Founder & Chairman Michael Saylor announced the purchase amid Bitcoin's recent price surge, surpassing $42,000. MicroStrategy initially entered the Bitcoin market in August 2020 with a $250 million investment and has consistently added to its holdings since then. The company's treasury reserve strategy now holds over 189,150 bitcoins valued at more than $8.11 billion at the time of writing. Despite the approaching fourth Bitcoin halving and following the approval of the first spot Bitcoin ETFs (see above!) in the U.S., MicroStrategy remains aggressive in its Bitcoin investment strategy. Time will tell if Bitcoin will become as widespread on companies' balance sheets as cash equivalents, equity and debt instruments are nowadays. That's all for now, folks! Don't be shy: get in touch with us by using the "Contact us!" button at the top of this page, or leave a comment down below with any questions or comments. We look forward to keeping you posted on the latest developments in Bitcoin-land.