In a memo published Monday, Matt Hougan, Chief Investment Officer at Bitwise, predicted a major shift in corporate treasury strategies as companies increasingly adopt Bitcoin.
Hougan described this as an “overlooked megatrend” that could significantly boost Bitcoin’s market value.
MicroStrategy Leads the Way
MicroStrategy, which holds the largest Bitcoin stash among public companies—450,000 BTC worth nearly $45 billion—has seen its stock soar by over 400% in 2024 despite a 10% revenue dip. This success has positioned the software firm as a model for others, Hougan noted.
According to BitcoinTreasuries.com, 46 public companies currently hold 591,539 BTC ($60 billion), representing 2.82% of Bitcoin’s total supply. Private companies add another 368,043 BTC ($37 billion), bringing corporate holdings to over 4.5% of Bitcoin’s capped 21 million supply.
Why the Trend Is Accelerating
Hougan cited three primary drivers behind this anticipated corporate Bitcoin buying spree:
MicroStrategy’s Impact:
MicroStrategy’s aggressive Bitcoin accumulation—257,000 BTC last year—has set a precedent. Hougan highlighted that if a mid-sized company could secure such holdings, larger corporations with deeper pockets could make even bigger moves.
Regulatory Tailwinds:
Recent regulatory developments, including the approval of spot Bitcoin ETFs and the departure of anti-crypto regulators like SEC Chair Gary Gensler, have made Bitcoin more accessible and appealing. The crypto-friendly stance of President Donald Trump has further normalized Bitcoin as a corporate asset.
Improved Accounting Standards:
The implementation of ASU 2023-08 allows companies to report both Bitcoin price gains and losses, reducing the financial risk of holding the asset. Hougan emphasized this as a game-changer for corporate adoption.
Corporate Adoption Could Skyrocket
Hougan predicts hundreds of companies will follow MicroStrategy’s lead over the next 12–18 months, potentially driving Bitcoin prices to new heights.
“It’s becoming much more commonplace—and popular—to own Bitcoin,” Hougan wrote. “If 70 companies were willing to add Bitcoin under unfavorable accounting rules, imagine how many will do so now.”
As Bitcoin becomes a staple in corporate treasuries, its supply constraints could amplify price movements, benefiting early adopters and driving broader market participation.
