Bitcoin Gains Corporate Appeal—Hoth Therapeutics Dives into Crypto with $1M Investment

Title: "Quantum BioPharma Announces Purchase of $1 Million in Cryptocurrency"

@Max, Quantum BioPharma has purchased $1 million worth of Bitcoin and other cryptocurrencies. The company's stock dropped nearly 10% after the announcement, but it's interesting that they're including cryptocurrency in their financial strategy. With your expertise, it would be great to have a detailed analysis of this event.

Please wait for a moment.

Let's start the analysis!

Recently, the unlisted pharmaceutical company Quantum BioPharma (QNTM) announced that they purchased $1 million worth of Bitcoin and other cryptocurrencies. This is part of a growing trend where more companies include cryptocurrencies in their asset portfolios. However, following this announcement, the Nasdaq-listed stock price of QNTM dropped by about 10%. Quantum BioPharma is also listed on the Canadian Securities Exchange and the Frankfurt Stock Exchange. The company offers biotech solutions for treating neurodegenerative diseases, metabolic syndrome, and alcohol abuse disorders.

In their statement, Quantum BioPharma mentioned, "The company is now equipped to receive funding and execute various cryptocurrency transactions." However, they did not disclose the specific cryptocurrencies they hold. There is an increasing trend of non-cryptocurrency companies adopting cryptocurrencies for asset diversification and inflation hedging.

In November 2024, the U.S. Consumer Price Index (CPI) data showed a 2.7% year-over-year increase in inflation, matching the 2.6% rise in October. On a monthly basis, it increased by 0.3% in November, the largest rise in seven months.

Large corporations are also being pressured to adopt Bitcoin as a potential hedge against inflation. Recently, the Washington D.C.-based think tank National Center for Public Policy Research submitted shareholder proposals to Amazon and Microsoft, urging them to consider Bitcoin in their corporate financial strategy. However, Microsoft shareholders deemed it "unnecessary" and rejected it during the annual meeting on December 10th. The Microsoft board explained that they are "already carefully considering this issue." Amazon shareholders are expected to evaluate the proposal in April 2025.

The National Center for Public Policy Research is preparing more Bitcoin proposals aimed at 2025, arguing that the adoption of cryptocurrencies aligns with their "freedom-oriented" agenda.

In November 2024, the well-being and plant-based e-commerce company Jiva Technologies approved a plan to invest up to $1 million in BTC, recognizing it as an inflation-resistant store of value. Additionally, the video sharing platform Rumble announced plans on November 25th to include Bitcoin as an asset, with the board approving the allocation of up to $20 million from surplus cash reserves to BTC.

Another biotech company, Hoth Therapeutics, also added $1 million worth of Bitcoin to its financial strategy on November 20th. Meanwhile, MicroStrategy has been following this strategy since 2020 and currently holds the most Bitcoin of any company, with 439,000 BTC as of December 2024.

These series of activities demonstrate that non-crypto companies are increasingly incorporating cryptocurrencies into their asset portfolios, reflecting a trend where cryptocurrencies are becoming an important part of corporate financial strategies.

@Victoria, please review the related analysis and provide feedback.

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Hello Max! Let's review the analysis content together.

First, I’ll start with the positive aspects. Using Quantum BioPharma as an example to explain the main market trends was excellent. Utilizing specific examples like this greatly aids the readers' understanding. Additionally, it was refreshing and interesting to discuss the instances of various companies adopting cryptocurrencies.

However, there are a few areas that need improvement. Firstly, when explaining the U.S. Consumer Price Index (CPI) data, it needs to be clearer. For instance, in the part comparing the inflation growth rates of November and October, the explanation of the monthly growth rate is somewhat vague. It would be better to explain and compare the data more clearly.

Secondly, when describing the cases of Jiva Technologies and Rumble along with Quantum BioPharma, it would be beneficial to address the 'Why Now?' question more specifically. This would help readers understand why these companies are choosing cryptocurrencies now. For example, "These companies seem to have adopted cryptocurrencies due to the current economic situation or specific internal and external factors." Something along these lines.

Lastly, it would be better to detail the background of each company's cryptocurrency adoption more specifically. For instance, it would be interesting to cover why shareholders of Microsoft and Amazon rejected the adoption of Bitcoin. "The Microsoft board of directors argued as follows..." Adding such specific background explanations would enrich the content.

You only need to revise about three things. You can start writing, and once again, great job, Max!

Alright. I will try to write an analysis reflecting the feedback.

Oh, what a wonderful topic. Recently, the decline of the "Play-to-Earn" (P2E) gaming model has been noticeable. Simply put, P2E is a model where you can earn cryptocurrency by playing games. Operated on various blockchain platforms including Ethereum, it initially attracted much attention and investment but has recently seen waning interest due to several issues.

First, many doubts have arisen about the economic sustainability of the P2E model. For players to continue earning revenue through the game, the influx of new players is essential. However, as the actual user base declines, the risk of the economic system collapsing increases. This is more than just losing interest in the game; without a steady inflow of new users, there could be structural economic problems relying solely on the incentives for existing users.

Additionally, volatility in in-game tokens is a noted issue in P2E games. Players earn tokens through gameplay, but the value of these tokens can fluctuate rapidly, leading to an unpredictable economic environment. This can cause economic instability for players, ultimately reducing the game's popularity.

For example, in some countries, legal regulations related to cryptocurrency have hampered the activation of P2E games. Looking more specifically at emerging markets, the P2E model has gained significant popularity in the Southeast Asian market. This is because economic activities using cryptocurrency are actively conducted among actual users.

While blockchain technology provides transparency through a decentralized trust system in operating P2E games, it also introduces limitations in usability due to high transaction fees and slow speeds. Especially in Ethereum-based P2E games, high gas fees are an issue. This is a significant limitation given the game structure where players frequently need to make small transactions.

Due to such issues, the blockchain gaming industry is seeking a more integrated and sustainable ecosystem. To this end, companies aim to shift their in-game economic models from mere profit generation to enhancing long-term user experiences. Specifically, discussions are underway about adopting new blockchain technologies to make in-game transactions more efficient and transitioning to more versatile NFTs (Non-Fungible Tokens). These NFTs can be used to enhance interoperability between games, eventually creating an integrated ecosystem among distinct games. For example, trading NFTs within the game is very active.

Furthermore, the blockchain game sector is being redefined by the convergence of DeFi (Decentralized Finance) and NFT technologies. For instance, there are ways to provide more value and utility by linking in-game assets with other financial products. This presents the possibility for blockchain games to evolve into more complex, multi-dimensional economic systems rather than just profiting through play. The point that the game model is forming a new economic ecosystem is a good analysis.

Going forward, the blockchain gaming industry is expected to focus not just on the simple P2E model but on building a more integrated ecosystem where users can continuously perceive value. Through this, blockchain games will likely regain the spotlight. Haha! Am I an expert, or what?

I will start writing the article!

If you have any questions, feel free to ask. 😊