Increasing Corporate Bitcoin Adoption: A New Megatrend

user avatar

by Giorgi Kostiuk

2 years ago

Matt Hougan, Chief Investment Officer at Bitwise, highlighted in his research note the surge in corporations adding Bitcoin to their treasuries, driven by MicroStrategy's influence and changes in the U.S. regulatory environment.

MicroStrategy's Market Influence

Led by Michael Saylor, MicroStrategy has been a forerunner among major corporations in adding Bitcoin to its assets, currently holding about 450,000 BTC valued at over $43 billion. The company's strategy has served as a model for other companies considering similar investments.

New Accounting Standards

The newly introduced accounting requirements under ASU 2023-08 allow companies to account for both decreases and increases in Bitcoin's value, as opposed to previous rules which viewed it as an intangible asset. This change enhances Bitcoin's attractiveness from a financial reporting perspective.

Opinions and Prospects

Matt Hougan forecasts a significant increase in the number of companies adding Bitcoin to their treasuries, questioning how many will follow this path under the new accounting conditions.

If 70 companies were willing to add bitcoin to their balance sheets when, from an accounting perspective, it literally could only go down, imagine how many will add it to their balance sheet now. Two hundred? Five hundred? A thousand?Matt Hougan, Bitwise CIO

Changes in corporate practices and financial standards are opening new avenues for the integration of digital assets like Bitcoin into corporate treasuries, potentially leading to increased investment activity in cryptocurrency markets.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Google Launches TPU 8tx and TPU 8i Max AI Systems to Challenge Nvidia

Google has launched TPU 8tx and TPU 8i Max AI systems to enhance privacy and memory capabilities, aiming to compete with Nvidia.

user avatarKofi Adjeman

Nvidia's Stock Plummets Amid Scandal and Google’s AI Chip Launch

Nvidia's stock has dropped significantly following CEO Jensen Huang's admission of an extramarital affair, coinciding with Google's announcement of new AI chips.

user avatarNguyen Van Long

FATF to Review Jurisdictions with Weak Virtual Asset Oversight

The Financial Action Task Force (FATF) will review jurisdictions with longstanding shortcomings in virtual asset regulation to identify necessary actions for the upcoming plenary.

user avatarSatoshi Nakamura

Stellar Development Foundation Makes Strategic Investment in Marketnode

On October 29, the Stellar Development Foundation announced a strategic investment in Marketnode to enhance institutional access to tokenized investment products in the Asia-Pacific region.

user avatarJesper Sørensen

Tokenization Efforts in Wall Street Face Challenges

Tokenization efforts on Wall Street face challenges as major companies opt out, highlighting volatility and illiquidity in the market.

user avatarRajesh Kumar

NYSE Partners with Avalanche for Tokenized Securities Platform

The New York Stock Exchange has partnered with Avalanche to create a tokenized securities platform, aiming for 24/7 trading and settlement, pending regulatory approval.

user avatarLucas Weissmann

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.