Bitcoin adoption wave spreads from the US to Europe as the European Squash Federation (ESF) establishes BTC strategic reserve.
The re-election of Donald Trump has witnessed accelerated initiatives by US states in legislation proposals to aid Bitcoin investment. This pursuit coincides with the renewed focus on the public-listed firms slowly entering Europe.
European Union (EU) lawmakers seek to replicate efforts in the US by creating a strategic Bitcoin reserve (SBR). Several regional corporate firms declared endorsing holding Bitcoin on their balance sheets.
The European Squash Federation (ESF) is the latest to implement Michael Saylor’s MicroStrategy script by adopting Bitcoin into its balance sheet. The sporting firm promoting squash games within the EU bloc disclosed plans to use the pioneering crypto in various capacities, primarily as a strategic reserve asset.
First Sporting Entity to Hold BTC
In the official update on Monday, Jan. 27, the squash gaming federation confirmed embracing Bitcoin in a move that made it the pioneer among major sports federations in Europe. The agency hailed its move as suggesting its openness to digital financial innovations.
The ESF disclosed that creating the SBR is a constituent of its innovation agenda. It added that adding Bitcoin’s transactional capabilities will facilitate inbound and outbound transfers.
The European squash agency also announced that it would create a platform to facilitate BTC donations. The protocol urges enthusiasts and entities to execute Bitcoin-only payments to the ESF in readiness to support the firm’s sporting activities.
The ESF president Otto Kalvo reacted to this announcement, terming it the gateway for subsequent tech innovation that will thrive across Europe. He added that the ESF initiative would encourage other federations to integrate Bitcoin.
Will Bitcoin Conquer Europe via MiCA Regulation?
The adoption of Bitcoin by ESF coincides with enforcing the Markets in the Crypto-Assets (MiCA) framework across the bloc. The MiCA eases the regulatory regime by harmonizing guidelines for crypto firms pursuing the European Union (EU) market.
The new dispensation, whose implementation began on December 30 last year, offers stringent requirements for crypto firms to guarantee client protection. Furthermore, MiCA compels virtual operators in the bloc to ensure thorough compliance with KYCs and seek credible licenses.
Beyond the recent ESF move to Bitcoin adoption emerged after the liberal dispositions towards crypto within the US, forcing a paradigm shift in over 11 states.
Public-Listed Companies Adopt Bitcoin
More public-listed companies are joining the list of entities adding Bitcoin to their balance sheets. Beyond the attention drawn by MicroStrategy adding more Bitcoin to its $48 billion stockpile is Nasdaq-listed tech company Nuvve (NVVE), which is bullish on BTC balances.
The tech company revealed on Tuesday, Jan. 28, that it is adopting the Bitcoin strategy by allocating cash towards its purchase. Also, the company that majors in green energy, notably electric vehicle charging technology, indicated it would accept Bitcoin for payments.
In its Tuesday statement, Nuvve confirmed plans to utilize 30% of the cash holdings towards the Bitcoin reserve. It added that doing so would diversify its treasury holdings.
Like ESF and Nuvve, Fathom Holdings (FTHM) revealed plans to allocate half of the excess cash reserves towards BTC. The real estate tech firm joins healthcare duo Semler Scientific and Cosmos Health alongside auto firm Worksport.
Given the gigantic returns, MicroStrategy’s chair is convinced that buying Bitcoin will last longer than holding cash. The advocacy for Bitcoin is premised on investors’ conviction that crypto effectively works in hedging against inflation.
The smaller entities are outpacing larger companies that have recently portrayed a slower uptake of the Bitcoin standard. With more states passing legislation, more companies could swiftly adopt and add Bitcoin to their vault.