Matt Hogan, chief investment officer (CIO) at Bitwise, issued a report Bold prediction: Hundreds of companies will purchase Bitcoin as a treasury asset in the next 12 to 18 months. The transformation, which Hogan described as “The big overlooked trend,“It has the potential to significantly influence the course of the Bitcoin market.
MicroStrategy: The torchbearer for enterprise Bitcoin adoption
MicroStrategy, led by Michael Saylor, has become synonymous with corporate adoption of Bitcoin. Although it is ranked 220th globally in terms of market capitalization, the company’s influence on the Bitcoin market is disproportionate. In 2024 alone, MicroStrategy captured 257,000 BTC, exceeding the total BTC mined that year (218,829 BTC).
The company’s ambitions show no signs of slowing down. It recently announced plans to raise $42 billion in additional Bitcoin purchases, equivalent to 2.6 years of annual Bitcoin production at current rates.
Beyond microstrategy: A growing movement
MicroStrategy’s actions are just the tip of the iceberg. According to Hogan, 70 publicly traded companies already hold Bitcoin on their balance sheets. This list includes not only local cryptocurrency companies like Coinbase and Marathon Digital, but also major giants like Tesla, Block, and Mercado Libre. Together, these companies – excluding MicroStrategy – own 141,302 Bitcoin.
Private companies are also important players. SpaceX, Block.one and others collectively own at least 368,043 bitcoins, based on data from BitcoinTreasuries.com. Hogan highlights that MicroStrategy’s share of the enterprise Bitcoin market is already less than 50% and is likely to decline further as adoption grows.
What happens when major companies, like Meta, which is currently considering a shareholder proposal to add bitcoin to its balance sheet — which is 20 times the size of MicroStrategy — start emulating MicroStrategy’s strategy?
Why Bitcoin adoption for businesses is expected to accelerate
There are two main barriers that have historically hindered corporate adoption of Bitcoin: reputational risk and unfavorable accounting rules. Both have changed dramatically in recent months:
1. Reducing reputational risks
Until recently, companies faced significant hurdles in adopting Bitcoin. CEOs and boards were concerned about shareholder lawsuits, regulatory scrutiny, and negative media coverage. However, as Bitcoin gains acceptance at both institutional and governmental levels, these concerns are dissipating. After the election, Bitcoin saw increasing bipartisan support in Washington, making owning Bitcoin “increasingly popular — even popular,” according to Hogan.
2. Favorable accounting changes
The Financial Accounting Standards Board (FASB) has introduced a new guideline, ASU 2023-08, that fundamentally changes how Bitcoin is accounted for. Previously, companies were required to mark Bitcoin as an intangible asset, forcing them to write down its value during falling prices but preventing upward adjustments when prices rose.
Under the new rule, Bitcoin can now be marked to market, allowing companies to recognize profits as its price rises. This change removes a significant hurdle and is expected to lead to massive growth in corporate holdings of Bitcoin.
The “why” behind Bitcoin adoption by businesses
The motivations of companies to hold Bitcoin mirror those of individual investors. Hogan identifies several reasons:
- Hedging against inflation: Bitcoin is seen as a guarantee against the depreciation of the currency.
- Speculation: Some companies aim to boost stock prices through exposure to Bitcoin.
- Cultural cues: Keeping Bitcoin Signals aligned with innovation and attracting a younger, tech-savvy customer base.
- Strategic intuition: For many, Bitcoin ownership is a calculated gamble.
Hogan stresses that the motivations behind companies adopting this technology are less important than the size of demand. “You just need to look at the numbers,” he writes. “Where does all this demand seem to be headed? And what does it mean for the market?”
The mega trend that could redefine the markets
Hogan’s note paints a bullish picture for Bitcoin’s future. If hundreds of companies follow MicroStrategy’s lead, cumulative demand could push Bitcoin’s price significantly higher in the coming year. With 70 companies already in less favorable conditions, the stage is set for an explosion in adoption.
This trend not only highlights Bitcoin’s evolving role as a treasury asset, but also underscores its growing acceptance as a major financial instrument. For mature investors, the implications are clear: the next 18 months could represent a pivotal period in Bitcoin’s journey from speculative asset to institutional cornerstone.
The time to buy is now
As reputational risks fade, accounting rules evolve, and demand accelerates, the consolidation of Bitcoin into corporate treasuries seems inevitable. Hogan’s analysis calls on investors to consider the broader implications:
If businesses truly embrace Bitcoin on a large scale, what does that mean for the future of the market? For savvy investors, the answer may lie in moving sooner rather than later.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.
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