Bitwise CIO Matt Hougan Predicts Explosion of Corporate Bitcoin Purchases in ‘Overlooked Megatrend’

Matt Hougan thinks the rising development of company Bitcoin (BTC) buying is simply getting began.

In a single new analysisThe chief funding officer of crypto asset administration agency Bitwise predicts that tons of of corporations will add BTC to their company bonds within the subsequent 12 to 18 months, which he believes will drive the Bitcoin market increased.

Hougan notes that the development is already a lot greater than that of MicroStrategy, BTC’s largest company holder.

“MicroStrategy will get all of the press, however it’s actually not the one one. At this time, 70 publicly traded corporations personal Bitcoin on their steadiness sheets, and lots of non-public corporations do as nicely (together with Bitwise, by the best way).

The listing of publicly traded corporations contains well-known crypto corporations equivalent to Coinbase and Marathon Digital, in addition to non-crypto corporations equivalent to Block, Tesla, Semlar Scientific and Mercado Libre. Collectively, these corporations – apart from MicroStrategy – personal 141,302 BTC.

Personal corporations usually are not required to report their holdings, however those who have executed so voluntarily (SpaceX, Block.one, and so on.) personal at the least one other 368,043 BTC, according to BitcoinTreasuries.com.

That’s important. It implies that even at this time MicroStrategy represents lower than 50% of the company BTC market. I think ultimately it’s going to solely be a small a part of it.”

The Bitwise CIO states that the reputational threat of shopping for Bitcoin is lowering, particularly as the brand new Trump administration embraces crypto.

Hougan additionally notes {that a} change in typically accepted accounting ideas (GAAP) surrounding Bitcoin will influence the variety of corporations selecting to spend money on the highest crypto property.

“Beginning in December, the Monetary Accounting Requirements Board (FASB) – which regulates how publicly traded corporations report monetary figures – carried out a brand new rule, referred to as ASU 2023-08, that modifications how bitcoin is accounted for in GAAP reporting.

Earlier than the start of this 12 months, Bitcoin was handled as an “intangible asset” topic to “impairment checks” underneath GAAP. That meant that corporations that purchased Bitcoin needed to file its worth on their books on the time of buy after which write down the worth when the value fell. But when the value rose, they weren’t allowed to extend the worth once more.

I do know it sounds loopy, however it’s true. Nevertheless, that can change underneath ASU 2023-08. Now, if the value of Bitcoin rises, corporations can mark up the market worth and e book earnings.”

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