Have you ever wondered why companies are starting to buy Bitcoin? It’s not just a passing trend—it’s shaping up to be a major shift in how businesses think about their money. According to Matt Hougan, the Chief Investment Officer at Bitwise, one of the asset managers offering Bitcoin ETFs in the U.S., we’re only at the beginning of this movement. Over the next 12 to 18 months, he expects hundreds of companies to add Bitcoin to their treasuries. This could have a big impact on Bitcoin’s price.
What’s Happening Right Now?
There is MicroStrategy, a company that’s been buying Bitcoin like there’s no tomorrow. While they grab most of the headlines, they’re far from the only ones doing this. Currently, 70 publicly traded companies hold Bitcoin on their balance sheets. These include cryptocurrency-focused companies like Coinbase and Marathon Digital, as well as businesses outside the crypto space, like Tesla and Mercado Libre. Together, they own over 141,000 Bitcoin, and that’s not even counting MicroStrategy.
Private companies are getting involved, too. While they don’t have to share their holdings, some, like SpaceX and Block, have voluntarily revealed their numbers. Combined, private companies are estimated to hold another 368,000 Bitcoin. This shows that MicroStrategy, despite being a major player, makes up less than half of the corporate Bitcoin market.
Why Are Companies Buying Bitcoin?
One reason is that buying Bitcoin no longer feels as risky as it used to. With Bitcoin becoming more accepted and even supported by upcoming U.S. government policies, companies are starting to see it as a smart move rather than a gamble.
Another reason is a new accounting rule that makes holding Bitcoin less of a headache. Until recently, companies had to follow some pretty strange rules when it came to reporting Bitcoin on their financial statements. They could record its value when they bought it, but if the price dropped, they had to lower the value on their books. If the price went up, though, they weren’t allowed to record the gain.
This all changed with a new rule called ASU 2023-08, which went into effect last month. Now, companies can adjust Bitcoin’s value both up and down, depending on the market price. This makes it much easier and more appealing for companies to hold Bitcoin without worrying about confusing financial statements.
What’s the Effect of this on Bitcoin Price?
Right now, Bitcoin is trading at $99,111 according to CoinMarketCap data, after breaking through $100,000 on Wednesday. Much of this optimism seems to come from the upcoming inauguration of president-elect Donald Trump, whose administration has shown support for cryptocurrency.
With more companies jumping on board, and better rules making it easier for them to hold Bitcoin, we could see a lot more activity in the Bitcoin market. It’s surely a fascinating time to watch how businesses are getting involved so be sure to keep your eyes on these developments. As companies add Bitcoin to their balance sheets, they’re showing the world that Bitcoin isn’t just for individuals—it’s becoming a part of how businesses manage their money, too. And this kind of dynamics could at some point have Bitcoin price explode to new all time highs, maybe even $200,000 or more just in 2025!
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