Bitcoin monthly digest: May 2024

It's summertime! As June starts, we're thrilled to be back with the newest instalment of our monthly Bitcoin digest. This newsletter is your go-to resource for keeping up with everything Bitcoin in 5 minutes or less. Let's jump right into the events of May and explore the newest developments in the Bitcoin world.

• Institutional adoption heat check: who's buying? May brought numerous developments from an institutional adoption standpoint. Let's review below the most significant ones:

BlackRock report

BlackRock, the largest fund manager and asset allocator in the world, has noticed increasing interest in Bitcoin ETFs from institutional investors like sovereign wealth funds and pension funds. This follows the successful launch of BlackRock's Bitcoin ETF, iShares IBIT, approved by the SEC earlier this year. The U.S. spot Bitcoin ETF market has surpassed $200 billion in trading volume in 2024. Despite recent outflows due to market volatility, BlackRock remains optimistic about long-term institutional demand. Robert Mitchnick, BlackRock's head of digital assets, noted that BlackRock has been educating these institutions about Bitcoin for years. Even after iShares IBIT saw its first outflows following 71 days of inflows, Mitchnick believes a new wave of institutional buying is imminent.

With iShares IBIT quickly accumulating over $20 billion in Bitcoin, BlackRock has shown the significant demand for custodied Bitcoin investment vehicles. Despite short-term outflows, the long-term outlook remains highly positive.

Semler Scientific adopts a Bitcoin strategy

Semler Scientific, Inc. (Nasdaq: $SMLR), a company known for healthcare solutions targeting chronic diseases, has announced a significant shift in its treasury strategy by adopting Bitcoin as its primary reserve asset. The board of directors approved the purchase of 581 Bitcoins for a total of $40 million, including fees and expenses.

Eric Semler, Chairman of Semler Scientific, explained, "Our bitcoin treasury strategy highlights our belief in Bitcoin as a reliable store of value and a compelling investment. With over $1 trillion in market value, Bitcoin's scarcity makes it a strong inflation hedge and safe haven amid global instability. Its digital resilience gives it an edge over gold, which has a market value about ten times that of Bitcoin. We see significant potential for Bitcoin to generate outsized returns as it becomes more widely accepted as digital gold."

Semler Scientific's board and senior management carefully evaluated various uses of excess cash and concluded that holding Bitcoin is the best strategy.

Wisconsin bought Bitcoin for their State pension fund

The State of Wisconsin Investment Board (SWIB) has disclosed significant investments in Bitcoin Exchange-Traded Funds (ETFs) through a recent SEC filing. SWIB holds nearly $100 million in BlackRock's spot Bitcoin ETF (IBIT) and over $63 million in Grayscale's spot Bitcoin ETF (GBTC), totalling just over $162 million. This makes SWIB the first state-level institution to publicly announce holdings in spot Bitcoin ETFs, marking a significant milestone in integrating Bitcoin into traditional investment portfolios. The 13F filings reveal increasing institutional interest in Bitcoin, with prominent investors like SWIB and JPMorgan Chase, which serves as a market maker for Bitcoin ETFs, disclosing their holdings.

Wisconsin's investment is a small part of a $37.8 billion public fund, but its long-term importance is significant. Wisconsin is now the second-largest holder of IBIT globally, setting a precedent for other state investment boards to follow.

• Argentina state-owned energy company starts mining Bitcoin

Argentina's energy sector is increasingly turning to Bitcoin, with a state-owned facility now using stranded natural gas from oil fields that would otherwise be wasted. YPF Luz, a subsidiary of state-owned energy firm YPF, has partnered with Genesis Digital Assets (GDA) to launch a gas flare-powered mining facility. This facility will utilize 1,200 machines to monetize gas that is currently being flared into the atmosphere. This initiative follows the election of Bitcoin-friendly President Javier Milei in late 2023 and highlights Argentina's growing embrace of Bitcoin.

GDA estimates that repurposing stranded gas, which is typically burned as waste, could reduce carbon emissions by up to 63%. This demonstrates how Bitcoin mining can convert energy byproducts into productive use. GDA founder Abdumalik Mirakhmedov stated, "This will be yet another opportunity to show the world that Bitcoin mining can have a positive effect on the environment and can be fully integrated into local communities."

For YPF Luz, monetizing stranded gas helps offset costs and promotes sustainability. For GDA, it means access to competitive energy pricing and reduced carbon output. For Argentina, it signals leadership in using Bitcoin mining to enhance energy infrastructure. This project mirrors efforts in other countries to "clean up" energy grids with Bitcoin mining. Bhutan uses renewable hydropower to mine Bitcoin, consuming its seasonal excess, while El Salvador employs geothermal energy for mining with no carbon footprint.

That's a wrap 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. See you in a few weeks with our June updates!