Corporate Bitcoin Adoption Poised for Massive Growth, Says Bitwise CIO

Matt Hougan, Chief Investment Officer at Bitwise, believes the wave of corporate Bitcoin acquisitions is only in its infancy.

He predicts that within the next 12 to 18 months, hundreds of companies will add Bitcoin to their balance sheets, potentially fueling a major market surge.

Hougan emphasizes that while MicroStrategy dominates headlines as the largest corporate Bitcoin holder, the trend extends far beyond. Currently, 70 publicly traded companies hold Bitcoin, with notable names like Tesla, Coinbase, Block, and Mercado Libre among them. Together, these companies (excluding MicroStrategy) own over 141,000 BTC. Private firms such as SpaceX and Block.one also contribute significantly, collectively holding an estimated 368,000 BTC, showcasing a much broader market than MicroStrategy alone.

This growing adoption is underpinned by several factors, including diminishing reputational risks associated with holding Bitcoin. Hougan points to a more favorable environment under the incoming administration, which appears supportive of cryptocurrency innovation.

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Additionally, a significant shift in accounting rules could further incentivize corporate Bitcoin purchases. As of December, new guidelines from the Financial Accounting Standards Board (FASB) allow companies to mark Bitcoin holdings at market value, reflecting both gains and losses. Previously, Bitcoin was treated as an intangible asset, requiring companies to write down losses without acknowledging gains, a practice that deterred many firms.

With the changing regulatory landscape and improved accounting standards, Hougan anticipates a substantial increase in corporate Bitcoin adoption. He suggests this trend will not only expand the market but also solidify Bitcoin’s role as a strategic asset in corporate treasuries.

Kosta Gushterov