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Arabian Post
2 hours ago
- Arabian Post
Public Companies and Funds Dominate Bitcoin Accumulation
Corporate treasuries and investment funds have made significant moves into Bitcoin this year, with a staggering 371,111 BTC purchased since January. This figure, more than three times the amount mined during the same period, signals the growing influence of institutional investors in the cryptocurrency market. These acquisitions come amid an evolving strategy pioneered by Michael Saylor, the founder of MicroStrategy, whose company continues to lead the pack in BTC purchases. Saylor, an early advocate of Bitcoin, has been vocal about the digital asset's potential as a hedge against inflation and a store of value, especially in an era of increasing economic uncertainty. MicroStrategy's strategy of accumulating Bitcoin on its balance sheet has served as a model for other corporate investors looking to diversify their cash reserves. The company currently holds over 150,000 BTC, solidifying its position as the largest publicly traded corporate holder of Bitcoin. This trend is not limited to MicroStrategy alone. A growing number of public companies have followed suit, with many purchasing Bitcoin as part of their long-term investment strategies. Among the most prominent in this movement are Tesla, which made a significant BTC purchase in early 2021, and Block, the payments company founded by Jack Dorsey. Both have maintained substantial Bitcoin holdings, and their actions continue to inspire others in the corporate sector to consider the digital asset as a viable alternative to traditional assets like cash or bonds. ADVERTISEMENT The accumulation of Bitcoin by public companies and investment funds is also evidenced in the growth of Bitcoin-backed exchange-traded funds. Major ETFs have amassed nearly $151 billion worth of BTC, accounting for a significant 6.47% of the total circulating supply. This figure reflects the increasing mainstream acceptance of Bitcoin and the growing appetite for institutional investors to gain exposure to the cryptocurrency market without the direct complexities of buying and storing the digital asset. The Bitcoin ETF market has rapidly matured, with various products offering different exposure options. Grayscale Bitcoin Trust and the Purpose Bitcoin ETF, for example, have emerged as key players, providing institutional and retail investors alike with a more accessible way to hold Bitcoin. These funds have not only bolstered institutional interest but also helped legitimize Bitcoin as an asset class in the eyes of traditional finance. One of the key factors driving this wave of institutional adoption is the desire for better yield in an environment of low-interest rates and rising inflation. Bitcoin's scarcity, with a maximum supply of 21 million coins, makes it an attractive proposition for funds and corporate treasuries looking for an alternative store of value. As inflation fears continue to loom, particularly in the wake of expansive monetary policies enacted during the COVID-19 pandemic, Bitcoin offers an attractive hedge against potential currency devaluation. The maturity of the Bitcoin network and its increasing institutional infrastructure, including custodial services, derivatives markets, and improved regulatory clarity, have made it easier for large investors to enter the market with confidence. This growing institutional infrastructure is also helping reduce some of the risks traditionally associated with cryptocurrency investments, such as security concerns and price volatility. However, not everyone is convinced of the long-term benefits of Bitcoin. Critics argue that the digital asset remains highly speculative, with no inherent value other than what investors are willing to pay. Regulatory uncertainty also continues to cast a shadow over the market, with governments worldwide scrutinizing the use of Bitcoin in financial systems and its role in money laundering and illicit activities.
Zawya
3 hours ago
- Zawya
African Development Bank commits to Zambia's Private Sector Growth at Investment Conference
The African Development Bank ( reaffirmed its strong support for Zambia's private sector-led transformation by hosting a strategic side event during the inaugural Invest in Zambia International Conference (IZIC). The high-profile session, themed 'Catalyzing Private Sector Growth: Unlocking AfDB's Financing Toolkit in Zambia,' successfully engaged private companies, financial institutions, development partners, and government representatives. In his opening remarks, the Country Manager for Zambia, Raubil Olaniyi Durowoju, emphasized the Bank's growing focus on private sector operations, both at the institutional level and within Zambia's strategic development priorities. 'Across the Bank, from the President's office to every Regional and Country Strategy, there is a deliberate shift toward private sector development as the engine for economic transformation,' he stated. 'Our Zambia Country Strategy Paper (2024–2029) is fully aligned with the Government's Eighth National Development Plan, with one of its key pillars focused on boosting private sector development through catalytic investments in infrastructure and agricultural value chains.' The event featured presentations from sectoral and financial experts across key Bank departments, providing participants with actionable insights into the Bank's extensive capabilities. The Financial Solutions Department presented the Bank's comprehensive range of non-sovereign instruments, including senior and subordinated loans, equity participation, trade finance, guarantees, risk participation agreements, and innovative blended finance options. Sector specialists from Agriculture, Transport Infrastructure Industry and Services, and outlined the Bank's intervention priorities in their respective areas, highlighting opportunities for private sector engagement. After moderating the side event, which aimed at exploring how the Bank could better support Zambia's private sector and accelerate investment in key sectors, Bleming Nekati, the Bank's Regional Head for Private Sector Operations in Southern Africa, concluded: 'We are now well on our way to building a strong, diversified, and impactful pipeline of private sector operations in Zambia for delivery over the next 12 months and beyond' 'This is a defining moment for Zambia and the Bank as we accelerate private sector growth to unlock new opportunities, drive innovation, and build a more prosperous and inclusive future,' he added. The session concluded with an interactive Q&A segment, enabling participants to address sector-specific challenges and financing needs directly with experts from the Bank. In addition to the side event, the Bank team held targeted bilateral meetings with multiple companies and financial institutions to explore opportunities for collaboration and advance pipeline development. These engagements reinforced the Bank's commitment to partnering with Zambia's private sector to deliver inclusive and transformative growth. Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Arabian Business
4 hours ago
- Arabian Business
WTO slashes 2025 trade forecast as Trump tariffs, policy uncertainty weigh on growth
The World Trade Organization has cut its 2025 global trade growth forecast into negative territory, warning that rising tariffs and mounting policy uncertainty, including under US President Donald Trump's renewed protectionist measures, are reversing gains made in 2024 and risking long-term fragmentation of the world economy. In its 2025 Annual Report, the WTO said world merchandise trade volumes, which rose 2.9 per cent last year, are now expected to contract by 0.2 per cent this year — a downgrade of nearly three percentage points from earlier forecasts. The downward revision comes after new tariff announcements in early 2025 prompted a reassessment of the outlook. While the report does not name specific US measures, the WTO's April 2025 Global Trade Outlook cited the impact of tariff hikes on goods from key trading partners. Economists warned that these tariffs — along with retaliatory actions — are feeding uncertainty, disrupting supply chains and indirectly depressing services trade. Services trade caught in crossfire Although services are not directly subject to border tariffs, the WTO said higher duties on goods reduce demand for related services such as transport and logistics, while slower economic growth curtails spending on travel and investment-linked services. The forecast for services trade growth in 2025 has been cut to 4 per cent from 5.1 per cent under a low-tariff scenario. In 2024, commercial services trade grew 9 per cent globally, with travel up 13 per cent and computer services, a key category of digitally delivered exports, rising 12 per cent to reach $1 trillion. The Middle East was the only region to see a contraction, with a 1 per cent fall in exports. Risk of trade bloc fragmentation Director-General Ngozi Okonjo-Iweala warned in the report's opening message that 'potential signs of fragmentation' along geopolitical lines could cause the worst welfare losses for low-income economies. 'Multilateral cooperation itself is being called into question,' she said. The report notes that despite new trade measures, most-favoured-nation tariff terms still underpin around 74 per cent of global merchandise trade, preserving some stability. However, WTO monitoring shows $888 billion worth of trade was affected by new restrictions between October 2023 and October 2024 — half a trillion dollars more than in the previous period. The WTO urged members to use the organisation's committees to address health, safety and regulatory standards to prevent further trade frictions, and to work towards concluding pending negotiations on agriculture, fisheries subsidies and digital trade.
