Since its founding in 2009, Bitcoin has surpassed a market capitalization of C$3.2 trillion, according to Coin Market Cap, attracting more than 400 million users worldwide thanks to its monumental returns – over 27,000 per cent since 2016 – as well as softening regulation and a growing role as a reserve asset and portfolio diversifier uncorrelated with both stocks and fiat currency.
This content has been prepared as part of a partnership with Bitcoin Treasury Corp., and is intended for informational purposes only.
That said, cryptocurrency remains a nascent asset class subject to wide swings, with numerous bull and bear markets having increased investors’ heart rates over the past decade, and more likely to come as use-cases experience the normal cycle of creation and destruction every new technology must endure before becoming a permanent feature of human life.
Crypto’s high volatility is why investors interested in the space are best served by gathering experts in their corner, allocating into management teams whose pedigrees speak for themselves when it comes to harnessing innovation into stakeholder value.
A new stock worth evaluating under this thesis is Bitcoin Treasury (TSXV:BTCT), market capitalization C$89.7 million, a Canadian provider of institutional-grade Bitcoin services, including lending, liquidity and collateral, in conjunction with a treasury mandate that has accumulated 771.37 Bitcoins to date following a C$70 million purchase announced on June 27.
The company’s management team, composed of crypto industry veterans, brings a wealth of experience with strategic decision making aligned with value creation that goes a long way towards de-risking a retail investment. Let’s meet them now:
- Elliot Johnson, Bitcoin Treasury’s chief executive officer and chief compliance officer, previously served as chief investment officer and chief operating officer at Evolve, where he helped the asset manager launch some of Canada’s first crypto investment vehicles, including a spot Bitcoin ETF (EBIT) and Ether ETF (ETHR), gaining a thorough understanding of how to build the infrastructure behind physically settled crypto products. Prior to Evolve, Johnson was senior vice president (VP) of retail markets at Fiera Capital, a top Canadian firm with more than C$100 billion under management, preceded by a technology management leader for numerous business lines at National Bank of Canada.
- Kaitlin Thompson, chief operating officer, currently serves as VP of product strategy at Evolve, which manages nearly C$300 million across six crypto ETFs. Her expertise spans product development and research for both traditional and digital assets. Thompson built her career over numerous years at Mackenzie Investments, where she progressed from the company’s Business Management Rotational Program into a business development manager role overseeing advisors across the country.
- Heather Sim, chief financial officer (CFO), is a Chartered Professional Accountant with public company experience in Canada and the United States focused on crypto and traditional financial compliance. Sim has been president of Treewalk, an accounting solutions provider, since 2019, CFO of DMG Blockchain Solutions (TSXV:DMGI), an end-to-end blockchain technology developer, since 2021, and held the role of CFO at software company VSBLTY Groupe Technologies (CSE:VSBY) from 2020 to 2021.
- Finally, Keith Crone, chief marketing officer (CMO), has built a more than 25-year track record in investing sales and marketing, currently serving as CMO of Evolve. Career highlights include tenures as VP of retail markets at Fiera Capital, VP and partner of Propel Capital – which raised approximately C$1 billion in structured products within five years of operation – and senior VP of sales at JovFunds, the specialty investment arm under Jovian Capital, a financial holding company catering to the private wealth management market.
Protected by a management team well-versed in monetizing crypto market demand, the Bitcoin stock offers a strong qualitative green flag towards a potential investment, earning considerable conviction in what the company is capable of delivering on in the quantitative category as service offerings hit the market and the growing treasury purifies its exposure to its target asset.
To this end, Bitcoin Treasury has filed a preliminary short-form base-shelf prospectus in Canada that would allow it to distribute up to C$300 million in any combination of common shares, preferred shares, debt securities, subscription receipts and warrants over a 25-month period, granting it flexibility to respond to market volatility from a position of strength. See Johnson’s interview with Stockhouse’s Lyndsay Malchuk for further context.
With the stock currently trading at a market capitalization well below the more than C$124 million its treasury would fetch on the open market, and Bitcoin’s analyst consensus trending higher over the near-term and long-term – thanks to U.S. government enthusiasm, de-dollarization across the rest of the world, not to forget crypto’s legitimate use-cases beyond the capabilities of traditional finance – it feels like a propitious time to open a risk-adjusted position in Bitcoin Treasury and build it as a greater allocation is earned through positive news flow, taking advantage of any dips along the way, allowing the company’s highly-customized management team to deploy capital in line with shareholder value.
Thanks for reading! I’ll see you next week for a new edition of Weekly Market Movers, where I delve into companies that sat down with Stockhouse for an interview over the past week. Here’s the most recent article, in case you missed it.
Join the discussion: Find out what everybody’s saying about this Bitcoin stock on the Bitcoin Treasury Corp. Bullboard and check out the rest of Stockhouse’s stock forums and message boards.
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