Welcome to a comprehensive exploration of the increasing interest and investment in Bitcoin by corporations worldwide. This article dives into the details, analysing the growing appeal of this digital currency for businesses and its implications on the market. Aided by the ever-evolving developments in industry regulations and public opinion, Bitcoin’s adoption by corporations is set to spike exponentially.
Corporations Embrace Bitcoin
In a recent memo dated January 13, 2025, Matt Hougan, the Chief Investment Officer of Bitwise, revealed that the phenomenon of companies purchasing Bitcoin for their treasury needs is far more extensive and influential than most investors comprehend. Hougan emphasised that hundreds of companies would buy Bitcoin for their treasuries in the next 12-18 months, driving the Bitcoin market significantly higher.
In his memo titled “Companies Buying Bitcoin: An Overlooked Megatrend”, Hougan detailed that while MicroStrategy and its outspoken founder, Michael Saylor, often take the spotlight, they represent merely the tip of the iceberg of a rapidly growing corporate movement towards Bitcoin (BTC).
MicroStrategy currently ranks 220th globally based on market capitalisation. “It’s slightly larger than Chipotle and a bit smaller than Sherwin-Williams,” wrote Hougan. However, MicroStrategy’s BTC purchases surpassed the total new Bitcoin supply mined last year.
Hougan highlighted that MicroStrategy announced plans to raise over $42 billion to buy even more Bitcoin—equivalent to “about 2.6 years of new supply” at the current production rate.
He directly questioned what would occur if larger companies began to mimic MicroStrategy’s movement, using Mark Zuckerberg’s Meta as an example—20 times larger than MicroStrategy.
Although MicroStrategy’s moves often grab the spotlight, Hougan noted that many other companies have also incorporated BTC into their balance sheets.
In total, “70 public companies hold Bitcoin in their balance sheets,” including crypto-focused companies such as Coinbase and Marathon Digital, and mainstream corporations like Block, Tesla, Semler Scientific, and Mercado Libre.
Collectively—excluding MicroStrategy—these companies own 141,302 BTC. Private companies also hold significant amounts of Bitcoin.
Why Corporate Adoption Of Bitcoin Will Surge
Hougan identified two major factors that had previously hindered corporate adoption of Bitcoin—reputational risk and unfavourable accounting rules. However, he explained that both these facets have dramatically shifted.
He emphasised that reputational risk has significantly diminished in recent months, and with Washington now supporting crypto at the highest level post-election, owning Bitcoin has become more common—and even popular.
Hougan also spotlighted new accounting guidelines introduced by the Financial Accounting Standards Board (FASB) known as ASU 2023-08.
Previously, BTC was classified as an ‘intangible’ asset subject to impairment testing, forcing companies to write down the value of their Bitcoin if the price dropped—but not allowing them to mark up its value if the price increased. Now, firms can record BTC at market value and book profits when the price ascends.
Why Do Companies Choose Bitcoin?
Hougan addressed skepticism about why companies choose to hold BTC. He explained that corporate motivations generally mirror those of individual investors.
“Some companies are motivated by profits… Others worry about the depreciation of the dollar… Some want to show they are part of the Bitcoin community… There are those who simply follow their intuition,” he articulated.
However, understanding each company’s motivations is not as essential as understanding the overall size of demand.
Hougan’s memo concluded with an optimistic view, predicting that if large corporations follow in the footsteps of MicroStrategy—with the current supportive reputation and accounting rules—capital inflows from corporations could drive upward pressure on BTC prices significantly in the coming year.
At the time of writing this article, BTC was trading at $95,039.
FAQS
What’s driving corporate investment in Bitcoin?
Both the mitigation of reputational risk and the introduction of favourable accounting regulations are key factors promoting corporate investment in Bitcoin. Additionally, traditional motivations like potential profit-making and preservation of value against the dollar’s depreciation also drive businesses towards Bitcoin.
How is the corporate sector impacting Bitcoin’s market?
As more corporations adopt Bitcoin, increased demand is expected to boost its market significantly. Large corporations like MicroStrategy, Tesla, and Block have already incorporated Bitcoin into their balance sheets, creating a domino effect in the industry.
Which platforms can one use to purchase Bitcoin?
Several reliable platforms, including Best Wallet, MEXC, ByBit, Binance, BingX, and BitGet, offer easy, secure, and flexible solutions for purchasing Bitcoin.
How does the future look for Bitcoin?
With increasing adoption at both the individual and corporate level, the future of Bitcoin looks promising. Its growing acceptance and the support it enjoys in the regulatory environment point towards a future with wider acceptance and higher values.
In conclusion, Bitcoin continues to capture attention as one of the world’s most promising and valuable digital assets. With its value exceeding $100,000, it offers significant potential for investors, both individuals and corporations. The growing adoption of Bitcoin by significant corporations like MicroStrategy, Block, and Tesla makes the prospects of investing in this asset even more enticing. Therefore, understanding how to purchase Bitcoin through trustworthy platforms is a crucial first step into the world of crypto investment. The time is ripe to take concrete steps to start your journey in the crypto world, choose the platform that caters to your needs, and become a part of the burgeoning global crypto community.
