Matt Hougan, chief investment officer of Bitwise Crypto Asset Management Company, said companies are investing in Bitcoin (BTC). $99,128.5 He predicts that if the surge in buying is just starting, it could push the Bitcoin market up. Hougan states that hundreds of companies will add BTC to their corporate treasuries in the next 12-18 months.
Current Bitcoin Holders
Hougan notes that this trend is already broader than MicroStrategy. Although MicroStrategy is the largest institutional owner of BTC, it states that 70 publicly traded companies have Bitcoin on their balance sheets, including many private companies. These include well-known companies such as Coinbase, Marathon Digital, Block, Tesla, Semlar Scientific and Mercado Libre.
Impact of New Accounting Standards
Hougan notes that changes in generally accepted accounting principles (GAAP) regarding Bitcoin will impact companies’ decisions to invest in the top crypto asset. The ASU 2023-08 rule, implemented in December, changes how Bitcoin is accounted for in GAAP reporting.
Reputation Risk Decreases
Hougan emphasizes that the reputational risk of purchasing Bitcoin has diminished with the Trump Administration’s embrace of crypto. He states that this will make companies more willing to invest in Bitcoin.
“MicroStrategy gets all the press, but it doesn’t stand alone. “Today, 70 public companies have Bitcoin on their balance sheets, and many private companies also have it,” said Hougan, pointing out that the growth of the Bitcoin market will continue.
Private companies do not have to report their holdings, but companies that voluntarily disclose their holdings, such as SpaceX and Block.one, have at least 368,043 BTC. According to BitcoinTreasuries.com data, these figures represent a significant market share.
Hougan predicts that MicroStrategy’s share of the institutional BTC market is below 50% and this rate will decrease further over time. Companies’ interest in Bitcoin is expected to continue to increase.
Sign of a Big Trend
Bitwise CIO Matt Hougan describes companies buying Bitcoin as an “overlooked megatrend.” It is thought that this trend will contribute to the growth of the Bitcoin market and more companies turning to crypto assets.
As a result, the increase in Bitcoin purchases by companies carries significant growth potential in the cryptocurrency market. New accounting standards and reduced reputational risk may support an acceleration of this trend. Investors and market observers continue to follow these developments closely.
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.
