Leading Dutch cryptocurrency firm, Amdax, has announced plans to launch the Amsterdam Bitcoin Treasury Strategy (AMBTS). The AMBTS is a dedicated Bitcoin treasury company that is designed to challenge how digital assets in Europe are invested. The plan for AMBTS is for it to be listed on Euronext Amsterdam, the official stock exchange of the Netherlands.
This move will place Amdax as a crypto powerhouse in Europe’s digital asset space, as many companies and individuals are embracing the digital economy. It’s a clear sign of how fast the crypto space is evolving. While institutions are building strategies around Bitcoin, retail traders are just as busy chasing opportunities with the latest tokens on launchpads. This shows that both sides of the market are pushing the digital economy forward.
Concerning the plans for AMBTS, Amdax revealed that the new company would operate as a privately held entity with its own governance framework. The company would be solely focused on Bitcoin accumulation as it has set a target of securing up to 1% of Bitcoin’s total supply, which translates to about 210,000 BTC. Based on the current price of Bitcoin, the company would need to make an investment of about $24 billion. Amdax hopes to raise this capital by relying on private investors. (1 BTC ≈ $113,616)
Investing a large sum of money in Bitcoin is a risky but bold move, and Amdax isn’t the first in the finance industry to risk it. Strategy (formerly MicroStrategy), led by Michael Saylor, has previously invested a huge sum in Bitcoin, and currently, they are the only company with more than 1% of the total supply. The company currently owns 629,000 BTC, which has a total value of approximately $72.4 billion. Despite this investment, the company’s stock value is down 9%.
Amdax, however, wants to position itself as the number one Bitcoin reserve in the world. Rather than focusing on the short-term gains from trading the token, AMBTS is built on the promise of holding Bitcoin for a long period of time and the potential returns that come with it. With this principle, investors won’t see the token as an unpredictable tool but as an asset they can always fall back on.
Amdax believes that many financial institutions are becoming more interested in Bitcoin because of its low correlation with traditional assets. Just recently, a Japanese company, Metaplanet, also acquired 18,800 BTC worth $2.1 billion. Other factors like geopolitical instability, inflation, and clearer legislation have also boosted appeal. The crypto service provider believes that by accumulating BTC, AMBTS will give investors an opportunity to gain long-term exposure to Bitcoin in a regulated, transparent environment.
In the finance industry, Amdax has been building trust and credibility for many years. In 2020, it made history by becoming the first Netherlands-based crypto firm to be registered with the Dutch Central Bank. Amdax’s CEO, Lucas Wensing, believes this is the right time for the company to create a Bitcoin treasury company.
Speaking on the development, he explained that in the past 10 years, Bitcoin has been the best-performing digital asset. Although many individuals have been adopting it, it is still held in small portions across investment portfolios. Given that over 10% of the total Bitcoin supply is now in the hands of major players like the big corporations, governments, and institutions, this is the best time to create an independent reserve, and he hopes it can be listed on Euronext Amsterdam.