Insurance Company Lemonade Buys Bitcoin for its Balance Sheet

GB Market Commentary 17/12/2021

by Marcus Sotiriou

Bitcoin continues to make lower highs on the daily time frame as the short-term downtrend remains intact. Bitcoin has formed a triangle pattern (as shown below) and a breakout of either side of the triangle could result in a decisive move towards that direction.

Lemonade, a $2.5 billion insurance firm,

recently announced buying $1 million of Bitcoin for its balance sheet earlier this year, which has increased by about 20%. Even though $1 million is small relative to Bitcoin’s value, this will give other companies more confidence in making this step for their balance sheet. I think the majority of S&P 500 companies will have some exposure to Bitcoin for their balance sheet in the coming years as it becomes more widely accepted.

Crypto adoption continues to rise as Ledn, digital asset savings and credit platform, has announced its bitcoin-backed mortgage product whilst raising $70 million. The company says it’s the first product of its kind to hit the market. They claimed, “this mortgage will enable Ledn clients to use their bitcoin holdings to purchase a property while continuing to benefit from potential price appreciation of both assets.” The company is targeting over $100 million in bitcoin-backed mortgage originations by the end of the Q1 2022. Ledn are ahead of the curve with this move, which will allow Bitcoin holders to make use of their asset if they need cash. Last month, Bacon Protocol, a decentralised solution for the housing market, minted 7 mortgages as NFTs last month for properties worth $7.2 million. This shows how early we are in this crypto revolution, as it is transforming the real estate sector.