Bitcoin is increasingly finding its way into corporate treasuries, with one analyst predicting that by the end of the decade, it could become a common practice. Elliot Chun, a partner at...
Bitcoin is increasingly finding its way into corporate treasuries, with one analyst predicting that by the end of the decade, it could become a common practice. Elliot Chun, a partner at Architect Partners, shared in a market snapshot that he expects a quarter of the S&P 500 companies to have BTC as a long-term asset on their balance sheets by 2030.
The strategy of holding bitcoin as a treasury reserve asset was initially seen as unconventional when MicroStrategy, now known as Strategy, first adopted it in August 2020. The company positioned BTC as a hedge against inflation, a diversification tool, and a way to set themselves apart in the market. CEO Michael Saylor’s public embrace of bitcoin turned the company into a de facto proxy for BTC exposure, leading to MicroStrategy’s stock soaring over 2,000% since then, surpassing both the S&P 500 and bitcoin performance during the same period.
Following in MicroStrategy’s footsteps, GameStop recently announced plans to raise $1.3 billion through a convertible note to acquire bitcoin. While the stock initially rose after the announcement, it later experienced a correction, dropping nearly 15% for the week.
According to BitcoinTreasuries data, publicly listed companies currently hold 665,618 BTC, which is approximately 3.17% of the total supply of the cryptocurrency. Strategy holds the largest share, with 506,137 BTC.
Chun highlighted that treasurers may soon face career repercussions not for investing in bitcoin, but for disregarding it altogether. He emphasized that taking no action is no longer a viable strategy in today’s evolving financial landscape.
