According to a recent market snapshot by Elliot Chun, a partner at Architect Partners, it is predicted that by 2030, a quarter of the S&P 500 companies will have bitcoin on their balance sheets as a long-term asset. This strategy of holding bitcoin as a treasury reserve asset was first adopted by MicroStrategy in August 2020, and has since been followed by other companies such as GameStop.
MicroStrategy’s CEO, Michael Saylor, has been a vocal advocate for bitcoin, framing it as a hedge against inflation, a diversification tool, and a way to distinguish the company in the market. Since adopting this strategy, MicroStrategy’s stock has surged over 2,000%, outpacing both the S&P 500 and bitcoin.
GameStop’s recent announcement of raising $1.3 billion through a convertible note to acquire bitcoin further solidifies the trend of companies adding bitcoin to their balance sheets. According to Chun, treasurers may soon face career risk for ignoring bitcoin altogether, as doing nothing is no longer a defensible strategy.
Currently, publicly listed companies hold 665,618 BTC, which is around 3.17% of the cryptocurrency’s total supply. MicroStrategy holds the majority of this amount, with 506,137 BTC. As more companies follow suit, it is expected that bitcoin will become a standard practice for corporate treasuries by the end of the decade.
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