Bitcoin is transitioning from trading floors to corporate finance departments, and by the end of the decade, this could become a common practice, as suggested by one analyst.
“Considering the various strategies and implementations, I predict that by 2030, a quarter of the S&P 500 will have BTC listed on their balance sheets as a long-term asset,” stated Elliot Chun, a partner at Architect Partners, in a market overview.
The approach of maintaining bitcoin as a treasury reserve asset was unconventional when a company known as Strategy, formerly MicroStrategy, adopted it back in August 2020. The firm positioned BTC as a safeguard against inflation, an opportunity for diversification, and a method to stand out in the marketplace.
Michael Saylor, the then-CEO, publicly championed bitcoin, effectively turning the company into a go-to proxy for BTC exposure. Since that time, MicroStrategy’s stock has soared over 2,000%, significantly outpacing both the S&P 500 and bitcoin during the same timeframe, Chun highlighted.
More recently, GameStop has joined the trend, announcing plans to raise $1.3 billion through a convertible note to purchase bitcoin. Initially, its stock price surged after the news, but it has since experienced a decline, dropping nearly 15% over the week.
Chun suggested that corporate treasurers may soon face professional repercussions not for acquiring bitcoin, but for neglecting it entirely. “Maintaining the status quo is no longer a viable strategy,” he asserted.
According to data from BitcoinTreasuries, publicly traded companies currently hold 665,618 BTC, which accounts for about 3.17% of the total cryptocurrency supply. MicroStrategy possesses the majority of this, holding 506,137 BTC.
Read more: U.S. Listed Firms Continue Bitcoin (BTC) Treasury Adoption