Matt Hougan, Chief Investment Officer at Bitwise Asset Management, predicts a massive surge in corporate Bitcoin adoption. He believes hundreds of companies will add Bitcoin to their reserves within the next year or two, significantly boosting the Bitcoin market.
Beyond MicroStrategy: A Growing Trend
While MicroStrategy often grabs headlines for its Bitcoin holdings, Hougan points out it’s just the tip of the iceberg. Currently, 70 publicly traded companies already hold Bitcoin, along with numerous private firms, including Bitwise itself. Excluding MicroStrategy, these publicly traded companies collectively own over 141,000 Bitcoin. Adding in estimates from voluntarily reporting private companies like SpaceX and Block.one, the total corporate Bitcoin holdings are significantly higher—likely exceeding 500,000 BTC. This means MicroStrategy’s holdings represent less than half the current corporate Bitcoin market, and that share is likely to shrink.
Why the Shift? Decreasing Risk and Accounting Changes
Hougan cites two key factors driving this trend:
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Reduced Reputational Risk: The stigma around Bitcoin is fading, particularly with a more crypto-friendly political climate.
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Accounting Rule Changes: A new accounting standard (ASU 2023-08) allows companies to reflect Bitcoin’s rising value in their financial reports. Previously, companies could only record losses, not gains, on their Bitcoin holdings. This change makes Bitcoin investment much more attractive to corporations.
In short, Hougan sees a perfect storm brewing for massive corporate Bitcoin adoption, and he believes it’s a trend many are overlooking. He expects this to have a major positive impact on the Bitcoin market.
Disclaimer:
This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in any cryptocurrency./p>
