A recent memo suggests a massive shift is coming in the corporate world: many companies are about to start buying Bitcoin.
The Bitcoin Corporate Buying Spree
Matt Hougan, Chief Investment Officer at Bitwise, predicts that hundreds of companies will add Bitcoin to their treasuries within the next 12-18 months. He believes this will significantly boost the Bitcoin market. While MicroStrategy and Michael Saylor get a lot of attention, they’re just the tip of the iceberg. MicroStrategy’s Bitcoin holdings are impressive – exceeding the total amount of new Bitcoin mined last year – but many other companies are also getting in on the action.
Currently, 70 public companies hold Bitcoin on their balance sheets, including crypto-focused firms like Coinbase and Marathon Digital, and mainstream companies like Block, Tesla, Semler Scientific, and Mercado Libre. Private companies are also holding significant amounts of Bitcoin, with SpaceX and Block.one among them. Even with MicroStrategy’s large holdings, they still represent less than 50% of the total corporate Bitcoin market.
Why the Sudden Shift?
Two main factors have historically held back corporate Bitcoin adoption: reputational risk and unfavorable accounting rules. However, both of these are changing. The risk of negative press or lawsuits is decreasing, especially with Washington now showing more support for crypto. New accounting guidelines (ASU 2023-08) also allow companies to record Bitcoin at market value, making it much more attractive.
Why are Companies Buying Bitcoin?
Companies have various reasons for buying Bitcoin, similar to individual investors. Some seek profit, others want to hedge against the declining value of the dollar, some want to be seen as part of the Bitcoin community, and some just follow their gut feeling. The key takeaway is the sheer volume of corporate demand – and its potential impact on the market.
The Future of Bitcoin
Hougan’s optimistic outlook suggests that with a more supportive regulatory environment and improved accounting rules, corporate investment could significantly drive up the price of Bitcoin in the coming years. He reiterates his prediction: hundreds of companies will buy Bitcoin for their treasuries in the next 12-18 months.
At the time of writing, Bitcoin was trading at $95,039.
How to Buy Bitcoin
Buying Bitcoin might seem daunting, but it’s easier than you think. Here’s a quick guide using popular platforms:
1. Best Wallet: A mobile-first platform focused on ease of use and security. Download the app, create an account, verify your identity, deposit funds, and buy Bitcoin.
2. MEXC: A low-fee platform supporting over 2,500 digital assets, including Bitcoin and altcoins. Create an account, verify your identity, deposit funds, and buy Bitcoin.
3. ByBit:
Popular with professional traders due to its high leverage options. Create an account, verify your identity, deposit funds, and trade Bitcoin.
4. Binance: One of the largest and most trusted platforms for buying Bitcoin. Create an account, verify your identity, deposit funds, and buy Bitcoin.
5. BingX: Offers social trading features, allowing you to copy the strategies of experienced traders. Create an account, verify your identity, deposit funds, and buy Bitcoin.
6. BitGet: A comprehensive platform for both spot and derivatives trading. Create an account, verify your identity, deposit funds, and trade Bitcoin.
Disclaimer: This information is for educational purposes only and is not financial advice. Do your own research and consult a financial professional before making any investment decisions./p>
