tl;dr
Matt Hougan, chief investment officer of Bitwise, predicts a surge in the Bitcoin market as he anticipates hundreds of companies to add BTC to their corporate treasuries in the next 12–18 months. Hougan notes that the trend is already significant, with 70 publicly traded companies and many private c...
Corporate Bitcoin purchases are expected to surge in the next 12-18 months, with 70 publicly traded companies already holding BTC, according to Bitwise CIO Matt Hougan. He predicts that hundreds of companies will add BTC to their corporate treasuries, diminishing reputational risk and impacting GAAP reporting. Additionally, a change in accounting principles (ASU 2023-08) now allows companies to mark Bitcoin's value to market and book a profit.
Hougan notes that the trend is already significant, with 70 publicly traded companies and many private companies owning Bitcoin, including well-known names like Coinbase, Tesla, and SpaceX. He argues that the reputational risk of buying Bitcoin is diminishing, especially with the incoming Trump Administration’s embrace of crypto.
Moreover, a change in accounting principles (ASU 2023-08) allows companies to mark the value of Bitcoin to market and book a profit, potentially influencing more companies to invest in the cryptocurrency. Hougan believes that this burgeoning trend of corporate Bitcoin purchases is only beginning, anticipating a surge in the Bitcoin market within the next 12–18 months.
The Bitwise CIO highlights that the reputational risk of buying Bitcoin is diminishing, especially with the incoming Trump Administration’s embrace of crypto. Additionally, the change in generally accepted accounting principles surrounding Bitcoin will impact the number of companies that choose to invest in the top crypto asset.
"Starting in December, the Financial Accounting Standards Board (FASB) implemented a new rule called ASU 2023-08 that changes how bitcoin is accounted for in GAAP reporting. Previously, bitcoin was treated as an 'intangible asset' subject to 'impairment testing.' Under the new rule, companies can mark the value to market and book a profit if Bitcoin's price goes up," Hougan explained.