MicroStrategy company Bitcoin $97,120.1 Although it is frequently on the agenda with its purchases, according to Bitwise CIO Matt Hougan, 70 public companies already hold Bitcoin on their balance sheet. Additionally, private entities control an additional 368,043 BTC.
Increase in Corporate Investments
Recent changes to US GAAP accounting rules have allowed companies to record Bitcoin price increases as profit. This regulation removed a significant barrier to institutional adoption.
Bitcoin’s Place in the Balance Sheet
Bitwise CIO Matt Hougan expressed his expectation that hundreds of companies will add Bitcoin to their treasury reserves in the next 12-18 months. He stated that this situation could have a significant impact on the market.
Matt Hougan: “Over the next 12-18 months we will see hundreds of companies adding Bitcoin to their treasury reserves, and these purchases will push the Bitcoin market significantly higher.”
The Role of MicroStrategy
MicroStrategy has purchased an amount of Bitcoin that will exceed the total supply of BTC in the mine in 2024. Hougan compared Saylor’s company to the similarly sized Chipotle and stated that the Bitcoin purchases of large companies are remarkable.
It is known that 70 public companies hold Bitcoin on their balance sheet. These include well-known companies such as Coinbase, Marathon Digital, Block, Tesla, Semler Scientific, and Mercado Libre, and they hold a total of 141,302 BTC.
Matt Hougan: “The list of public companies includes crypto companies like Coinbase and Marathon Digital, as well as non-crypto companies like Block, Tesla.”
It is estimated that private institutions own 368,043 BTC. Hougan stated that these numbers will increase and that the improvement in nominal risk and accounting standards is effective.
With the change in US GAAP accounting rules, Bitcoin can be recorded not only as a loss in value but also as a profit in case of increase. This provided a key incentive for companies to increase their Bitcoin investments.
Some of the main reasons why companies buy Bitcoin are concern about the depreciation of the dollar and the desire to understand Bitcoin. Hougan stated that investors should focus on the impact of this trend on the market.
For investors who follow the latest market movements, the increase in institutional Bitcoin investments is seen as an important factor that will closely affect the value and market dynamics of Bitcoin.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
