Bitcoin's Role as Store of Value Dominates While Payment Use Cases Lag Behind

Institutional Investors Prioritize Bitcoin as Store of Value

Institutional investors are overwhelmingly focusing on Bitcoin's function as a store of value rather than its potential as a global payment system, according to BlackRock's digital assets leadership. Robbie Mitchnick, Head of Digital Assets at BlackRock, stated in a podcast interview that the payment use case "hardly plays a supporting role for investors today" ^[1].

"Our clients are hardly underlining this global payment network case today," Mitchnick explained, emphasizing that while such scenarios remain theoretically possible, they currently hold minimal weight in investment decisions ^[1].

Mitchnick noted that broader adoption of Bitcoin for payment purposes would require significant technical developments, particularly advances in Bitcoin scaling solutions like the Lightning Network and other Layer-2 approaches ^[1].

Stablecoins Emerging as Payment Solution

While Bitcoin's payment functionality remains underdeveloped, Mitchnick highlighted the strong performance of stablecoins in the payment sector, describing them as "clearly established" and pointing to their utility for efficient value transfers ^[1]. Stablecoins are already being deployed for various payment applications, including remittances, cross-border corporate payments, and capital market settlement processes ^[1].

This trend has caught the attention of prominent investors. ARK Invest CEO Cathie Wood recently adjusted her 2030 Bitcoin price forecast downward, citing the rapid expansion of stablecoins as a factor. Wood indicated that stablecoins are now fulfilling some functions she had previously attributed more strongly to Bitcoin ^[1].

Corporate Holders Face Market Pressure

As Bitcoin's price has plummeted 23% over the past month, corporate Bitcoin holders are navigating challenging market conditions ^[3]. Metaplanet, the fourth-largest corporate Bitcoin holder globally with 30,823 BTC on its balance sheet, announced plans to raise $135 million through a new preferred equity offering called "MERCURY" ^[2].

The Japanese firm's shares have plunged more than 61% in the past six months, and its market capitalization divided by the value of its Bitcoin holdings has dropped below 1 to stand at 0.98 ^[2]. Metaplanet purchased its Bitcoin holdings at an average price of $108,036, resulting in an unrealized loss of more than 23% ^[2].

The company faces additional uncertainty as MSCI consults with the investment community on whether to exclude from its indexes firms holding more than 50% of their assets in cryptocurrency ^[2].

Strategic Portfolio Adjustments

Meanwhile, "Rich Dad Poor Dad" author Robert Kiyosaki sold $2.25 million worth of Bitcoin, despite maintaining a bullish long-term outlook on the cryptocurrency ^[3]. Kiyosaki disclosed that he purchased the Bitcoin "years ago" at around $6,000 per coin and sold at approximately $90,000 ^[3].

The author plans to deploy the proceeds into surgery centers and a billboard business, estimating the investments will generate approximately $27,500 in monthly tax-free cash flow by February ^[3]. Kiyosaki stated he remains "still very bullish and optimistic on Bitcoin" and intends to begin "acquiring more with the positive cash flow" ^[3].

Market Conditions and ETF Activity

Bitcoin has fallen 33% from its all-time high of $126,198.07 set on October 6 and was trading at $84,061.63 as market sentiment reached "extreme fear" levels ^[3]. Despite the downturn, spot Bitcoin ETFs ended the week with $238.4 million in inflows, with Fidelity's FBTC leading at $108 million ^[3].

Bitcoin ETFs also recorded record trading volumes of $11.5 billion, with BlackRock's IBIT accounting for $8 billion of the total ^[3]. Bloomberg ETF analyst Eric Balchunas noted that elevated volume during market stress is normal, stating "ETFs are liquidity release valves" ^[3].