The world’s largest oil and gas company appears to be poised to invest in bitcoin.
Petro-bitcoin?
The Saudi giant – with a market capitalization of more than $2 trillion – has entered into business with SBI Holdings, a Japanese financial services company.
The agreement signed between Aramco and SBI Holdings provides that the two companies will collaborate “in the field of digital assets”. Clearly, there is a chance that Saudi Aramco intends to invest part of its cash in bitcoin.
Indeed, SBI Holdings very recently ally with the American bank Standard Chartered to create a joint company in the United Arab Emirates. Standard Chartered plans to offer custody of digital assets for institutional clients from the first quarter of 2024.
All this must be put in parallel with the fact that Standard Chartered anticipates a bitcoin at $100,000 before the end of 2024…
The second part of theagreement concerns the creation of a semiconductor factory in Saudi Arabia. Suffice it to say, this is no small deal.
Michael Saylor’s efforts to convince multinationals to imitate Microstrategy by placing their cash in bitcoin seem to be paying off.
The FASB’s recent accounting development should further speed things up. Until now, only the depreciation of bitcoins appeared on the balance sheets of companies. Capital losses were recorded, but not capital gains.
From now on, American companies will be able to declare their bitcoins at their fair value (“Fair value accounting”). This could encourage them to place part of their cash ($20,000 billion) in bitcoin.
As for Aramco, it is approximately 3,200 billion dollars that the Saudi company will seek to invest by 2030. So much money which could partly end up in bitcoin.
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