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Bitwise Chief Funding Officer (CIO) Matt Hougan stated shopping for and holding Bitcoin by corporations like MicroStrategy is an “ignored megatrend” that would considerably impression the Bitcoin market this 12 months.
Hougan stated in a weekly Bitwise memo that 70 publicly traded corporations have Bitcoin on their stability sheets, with MicroStrategy main the best way.
“We’ll see a whole lot of corporations purchase bitcoin for his or her treasuries over the following 12-18 months, and their purchases will carry the complete bitcoin market considerably larger, and their purchases will carry the complete bitcoin market considerably larger,” he stated.
MicroStrategy at the moment holds 447,470 Bitcoin, valued at greater than $44 billion. This follows the corporate’s current Bitcoin buy on January 6, the place it invested $101 million to accumulate 1,070 BTC at a worth of $94,004 per coin.
Being highlighted because the “largest company Bitcoin of BTC” doesn’t seize the larger image of what’s taking place. As Hougan emphasised, many traders nonetheless see MicroStrategy as an exception, failing to acknowledge the rising development of different corporations additionally adopting Bitcoin.
What the CIO shrewdly noticed is that MicroStrategy, ranked 220th by market cap, acquired however acquired 257,000 BTC in 2024 alone, which is greater than all of the Bitcoin mined in the identical 12 months (218,829 BTC).
“Let me say that once more: An organization the scale of Chipotle purchased greater than 100% of the complete new provide of bitcoin in 2024,” added Hougan, emphasizing that “MicroStrategy lately introduced plans to boost greater than $42 billion to accumulate extra bitcoin” which is equal to round 2.6 years’ price of recent provide.
“I’ve come away pondering that this can be a a lot larger development than most individuals understand. In truth, I feel it’s a bona fide megatrend.”@Matt_Hougan on this weeks investor memo on the rise of Corporates on the Bitcoin Customary.
Give it a learn. Hyperlink beneath — pic.twitter.com/OOyhj9DYgO
— Hunter Horsley (@HHorsley) January 13, 2025
“What occurs if actually huge corporations begin to take a web page from MicroStrategy’s ebook”, asks Hougan.
Different publicly listed corporations, whether or not within the crypto house or not, have additionally acquired Bitcoin. These embody CoinBase, Tesla, Semlar Scientific, and Mercado Libre, which collectively maintain 141,302 BTC.
Bitwise additionally owns Bitcoin, like non-public corporations equivalent to SpaceX and Block.one.
Quantity Of Companies Buying Bitcoin Is “Poised To Explode”
Hougan strongly believes that the variety of corporations shopping for Bitcoin is “poised to blow up,” as reputational threat, as soon as an enormous barrier, is about to be fully diminished. With Washington embracing crypto and making it extra mainstream, corporations really feel extra freedom so as to add BTC to their monetary sheets.
The second, extra essential purpose for Hougan is the brand new rule launched by the Monetary Accounting Requirements Board (FASB), the regulatory physique that decides how publicly traded corporations should report their financials. The brand new rule referred to as ASU 2023-08 adjustments how Bitcoin is accounted for beneath GAAP.
Beforehand, GAAP categorised Bitcoin as an “intangible asset,” and corporations needed to write down its worth if the worth dropped. However, corporations weren’t allowed to extend it if the worth rose. Underneath the brand new rule, “corporations can mark the worth to market and ebook a revenue”, Hougan stated.
Hougan emphasised the numerous shift in sentiment, stating:
“If 70 corporations had been keen so as to add bitcoin to their stability sheets when, from an accounting perspective, it actually may solely go down, think about what number of will add it to their stability sheet now. 2 hundred? 5 hundred? A thousand?”
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