Bitwise CIO Predicts a ‘Megatrend’ of Corporate Bitcoin Treasuries

Bitwise CIO Predicts a ‘Megatrend’ of Corporate Bitcoin Treasuries

Corporate Bitcoin Treasuries: An Emerging Megatrend

Software company MicroStrategy (Nasdaq: MSTR) experienced a 10% dip in revenue in 2024 but still emerged as one of the top-performing stocks in the Nasdaq 100, with a staggering 400% increase in value. The key to this success? Its massive Bitcoin (BTC) holdings, the largest among public companies worldwide. This trend has caught the attention of Matt Hougan, Chief Investment Officer at Bitwise, who predicts a surge in companies adopting Bitcoin as a treasury asset.

In a weekly memo published Monday, Hougan described this shift as an “overlooked megatrend” already in motion. “We’ll see hundreds of companies buy Bitcoin for their treasuries over the next 12-18 months,” he wrote. “These purchases will substantially lift the entire Bitcoin market.”

Data Supporting the Trend

Hougan’s prediction isn’t baseless. Data from BitcoinTreasuries.com reveals:

• Public Companies: 46 public firms collectively hold 591,539 BTC, valued at nearly $60 billion, accounting for 2.82% of Bitcoin’s total supply.

• Private Companies: 12 private firms own 368,043 BTC, worth roughly $37 billion, representing 1.75% of the total supply.

• MicroStrategy’s Holdings: Topping the list with 450,000 BTC valued at nearly $45 billion, MicroStrategy alone accounts for 2.12% of Bitcoin’s total supply.

In 2024, MicroStrategy acquired 257,000 BTC—a volume exceeding 100% of Bitcoin’s new supply that year—underscoring the potential scale of corporate Bitcoin acquisitions.

Key Drivers of the Megatrend

Hougan identifies several factors propelling this trend:

1. Corporate Adoption Potential: If mid-sized companies like MicroStrategy can amass significant Bitcoin holdings, larger corporations with deeper pockets could follow suit, dramatically increasing demand.

2. Regulatory Tailwinds: Shifts in regulatory attitudes have eased corporate concerns about adopting Bitcoin. Key developments include:

   • Approval of the first spot Bitcoin ETFs in January 2024.

   • Donald Trump’s endorsement of Bitcoin at the 2024 Bitcoin Conference and his subsequent election victory.

   • The resignation of anti-crypto regulators like SEC Chairman Gary Gensler.

   • Exposure and backlash against secret debanking efforts targeting the crypto industry.

3. Accounting Standards: The implementation of ASU 2023-08 allows companies to report both price gains and losses on Bitcoin holdings, reducing previous accounting hurdles. Hougan noted, “If 70 companies were willing to add Bitcoin to their balance sheets under old, unfavorable standards, imagine how many will now—200? 500? A thousand?”

The Road Ahead

Hougan’s optimism aligns with that of MicroStrategy Chairman Michael Saylor, who has long championed Bitcoin as a corporate asset. While the scale of adoption remains to be seen, the data and shifting regulatory landscape suggest a significant increase in corporate Bitcoin treasuries is imminent. As more companies join this trend, the broader cryptocurrency market stands to benefit from heightened institutional investment and legitimacy.