The recent spike in Bitcoin price was a front run on a potential BTC purchase from companies that cloud service company Oracle announced in its quarterly earnings call yesterday.
When the call ended, a dial tone was left on the crypto bulls awaiting such a reveal and the bears urged prices to be cut. However, a bestselling author and Bitcoin backer says the fact that Oracle passed BTC on for the time being is still ultimately optimistic about the cryptocurrency. Here’s why.
Earnings Call Bombshell: Oracle has decided not to buy BTC for the time being
Technology company Oracle held its quarterly earnings call yesterday. During such calls, CEOs and other executives often reveal forward-looking plans to keep growth going.
It has been speculated that the company could follow the lead of brands like MicroStrategy and Square Inc and announce a substantial purchase of BTC to increase its corporate reserves.
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Instead, the call ended and the cryptocurrency community was disappointed. Bitcoin sold out almost instantly but has since bounced back to retest yesterday’s highs.
Oracle stocks also fell due to a general lack of guidance, not due to the lack of a BTC purchase.
At one point, Larry Ellison, Oracle’s co-founder, chairman and chief technology officer, is quoted as saying that he is “not really ready to reveal our plans” about other areas of company growth.
Why this is still bullish for Bitcoin, according to the Price Of Tomorrow author
One way to fuel Oracle’s growth would be to buy BTC directly, as other companies have done over the past year.
The growth would not be tied directly to the operating income, but would continue to benefit the cash position of the company and thus also the shareholders considerably.
MicroStrategy stocks are up more than 1000% in a year, while Oracle has only rebounded 80% from Black Thursday lows. Not that Bitcoin is the be-all and end-all for all businesses, it’s been a hell of a safe bet lately.
Comparing MSTR with ORCL and BTC shows how much growth crypto can bring Source: BTCUSD on TradingView.com
The fact that Oracle passed BTC on for now is ultimately bullish for Bitcoin, according to Jeff Booth, author of The Price of Tomorrow.
Booth’s bestseller focuses on the collapse of fiat money and the price the world will pay for the current monetary expansion.
The setting is ideal for the cryptocurrency backer that Booth is himself. The reason he says it’s so bullish for Bitcoin? It shows “how early it is” for the still young cryptocurrency.
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Emerging financial technology has only just begun to gain widespread use by institutions and corporations, and the more companies that join, the less risk associated with the emerging asset class.
Maybe that’s what Oracle is waiting for, or maybe it was the plans they were “not really ready” to reveal.
Whatever it is, there is no denying that Booth is still very early and the cryptocurrency reign is only just beginning.
Featured image from deposit photos, charts from TradingView.com