According to Elliot Chun, a partner at technology financial consulting firm Architect Partners, by 2030, approximately a quarter of companies in the S&P 500 index may hold a certain amount of Bitcoin as a long-term financial asset. He believes the key driver for corporate Bitcoin investment is the risk of financial managers being afraid of missing investment opportunities.
Elliot noted:
If you attempt to invest in Bitcoin successfully, the market will view you as a genius; if you fail, at least you were brave enough to try.
But if you take no action without good reason, your position could face significant risk.
MicroStrategy Sparks Bitcoin Reserve Trend
Currently, according to BitcoinTreasuries.NET data, nearly 90 publicly listed companies hold Bitcoin, with MicroStrategy (MSTR) holding the most. Since first purchasing in August 2020, MicroStrategy has accumulated over 500,000 Bitcoins, and its stock price has risen over 2000% since its first Bitcoin investment, far exceeding the overall gains of Bitcoin and the S&P 500 index during the same period.
However, Elliot warns that other companies hoping to simply replicate MicroStrategy's performance may face disappointment, "MicroStrategy's strategy is uniquely strong and difficult to copy. They provided an important and special channel for corporations and US asset management institutions to gain exposure when direct Bitcoin investment was not possible."
So far, only Tesla and Block, the blockchain payment company founded by Jack Dorsey, hold Bitcoin among S&P 500 companies. To achieve Elliot's predicted "quarter ratio" (about 125 companies), 123 more companies would need to follow Bitcoin strategies in the next five years.
Digital Gold Driving Corporate Financial Innovation: Bitcoin Gradually Replacing Gold's Position?
From a financial asset management perspective, Elliot further believes that Bitcoin's convenience, storability, and flexibility as a digital asset far surpass traditional physical gold investments. Additionally, Bitcoin has been recognized by US GAAP as a liquid physical asset that can be included in corporate asset sheets, further driving companies to actively explore Bitcoin as a more flexible financial management tool.
On March 11th this year, crypto asset management company Bitwise also launched the "Bitwise Bitcoin Standard Corporate ETF", primarily tracking companies holding at least 1,000 Bitcoins in their corporate finances. Such an innovative investment product could further attract traditional companies, emerging tech firms, and asset managers, reflecting a clear market trend towards more mainstream Bitcoin holdings.
Nevertheless, the effectiveness of using Bitcoin as an anti-inflation and risk management strategy remains "not fully proven". While pursuing potential benefits, companies must carefully assess potential financial risks.
