{"id":7580,"date":"2025-01-14T13:02:20","date_gmt":"2025-01-14T13:02:20","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=7580"},"modified":"2025-01-14T13:02:20","modified_gmt":"2025-01-14T13:02:20","slug":"hundreds-of-companies-will-buy-bitcoin-over-the-next-12-18-months-fund-cio","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=7580","title":{"rendered":"Hundreds Of Companies Will Buy Bitcoin Over The Next 12-18 Months: Fund CIO"},"content":{"rendered":"
\n

In a newly released memo dated January 13, 2025, Matt Hougan, Chief Investment Officer (CIO) at Bitwise, argues that the phenomenon of corporations purchasing Bitcoin for their treasuries is far more widespread and influential than most investors realize. According to Hougan, \u201cWe\u2019ll see hundreds of companies buy Bitcoin for their treasuries over the next 12-18 months, and their purchases will lift the entire Bitcoin market substantially higher.\u201d<\/p>\n

Hougan\u2019s memo<\/a>, titled \u201cCompanies Buying Bitcoin: An Overlooked Megatrend,\u201d asserts that while MicroStrategy<\/a> and its outspoken founder, Michael Saylor, often dominate headlines, they are merely the most visible part of a rapidly expanding corporate movement into BTC.<\/p>\n

Despite being ranked 220th globally by market capitalization\u2014\u201ca bit bigger than Chipotle and a bit smaller than Sherwin-Williams,\u201d according to Hougan\u2014MicroStrategy\u2019s BTC acquisitions significantly exceed the entire new supply of Bitcoin mined last year.<\/p>\n

\u201cLast year, MicroStrategy bought ~257,000 BTC\u2026 more than all the Bitcoin mined in 2024 (218,829 BTC),\u201d Hougan wrote. He also noted that MicroStrategy has announced plans to raise over $42 billion to purchase more Bitcoin\u2014roughly equivalent to \u201cabout 2.6 years\u2019 worth of new supply\u201d at current production rates.<\/p>\n

Hougan poses a direct question regarding what might happen if \u201creally big companies start to take a page from MicroStrategy\u2019s book,\u201d pointing specifically to Mark Zuckerberg\u2019s Meta<\/a>, which he described as \u201c20x the size of MicroStrategy.\u201d<\/p>\n

While MicroStrategy\u2019s moves have garnered the most attention, Hougan emphasizes that many other companies are already including BTC on their balance sheets. In total, \u201c70 publicly traded companies own Bitcoin on their balance sheets,\u201d a figure that encompasses both crypto-centric firms such as Coinbase and Marathon Digital<\/a>, and mainstream players like Block, Tesla, Semler Scientific<\/a>, and Mercado Libre.<\/p>\n

Together\u2014excluding MicroStrategy\u2014these companies hold 141,302 BTC. Private companies also hold significant amounts of bitcoin. Hougan cites data from BitcoinTreasuries.com showing that private firms like SpaceX and Block.one collectively own at least 368,043 BTC. \u201cThat\u2019s significant. It means that, even today, MicroStrategy is less than 50% of the corporate BTC market,\u201d he wrote, predicting that MicroStrategy\u2019s share \u201cwill be a small fraction of it eventually.\u201d<\/p>\n

Why Bitcoin Corporate Adoption Is Set To Explode<\/h2>\n

Hougan points to two main factors that have historically constrained corporate adoption\u2014reputational risk and unfavorable accounting rules\u2014and explains why both have shifted rapidly.<\/p>\n

\u201cLast year, the CEO of one large publicly traded company faced huge hurdles in adding Bitcoin as a treasury asset,\u201d he wrote, describing the persistent fear of negative media coverage, shareholder lawsuits, and regulatory attention. \u201cBut reputational risks have peeled back significantly in the past few months. Post-election, with Washington embracing crypto at the highest levels, it\u2019s becoming much more commonplace\u2014and popular\u2014to own Bitcoin.\u201d<\/p>\n

Hougan then highlights a new accounting guideline introduced by the Financial Accounting Standards Board (FASB) called ASU 2023-08. Previously, BTC was classified as an \u201cintangible asset\u201d subject to impairment testing, forcing companies to write down the value of their Bitcoin if its price fell\u2014but never allowing them to mark the value back up if it rose. Now, companies can mark BTC to market and book a profit when its price appreciates.<\/p>\n

\u201cIf 70 companies were willing to add Bitcoin to their balance sheets when, from an accounting perspective, it literally could only go down, imagine how many will add it\u2026 now,\u201d Hougan wrote. \u201cTwo hundred? Five hundred? A thousand?\u201d<\/p>\n

Addressing skepticism as to why companies choose to hold BTC, Hougan contends that corporate motivations largely mirror those of individual investors. \u201cSome companies are greedy\u2026 Others are worried about the debasement of the dollar\u2026 Still others want to signal that they\u2019re part of the Bitcoin tribe\u2026 Some probably just have a hunch,\u201d he wrote.<\/p>\n

Ultimately, however, Hougan maintains that understanding each company\u2019s motivations is less important than observing the magnitude of overall demand. \u201cYou just need to look at the numbers and ask yourself two questions: Where does all of this demand from companies look like it\u2019s going? And what would that mean for the market?\u201d<\/p>\n

Hougan\u2019s memo concludes on a bullish note, forecasting that if major corporations follow the path paved by MicroStrategy\u2014now aided by more favorable reputational and accounting climates\u2014the influx of corporate capital could significantly push BTC\u2019s price higher over the course of the coming year.<\/p>\n

\u201cMy prediction: We\u2019ll see hundreds of companies buy Bitcoin for their treasuries over the next 12-18 months.\u201d \u2013 Matt Hougan, Bitwise CIO<\/p>\n

At press time, BTC traded at $95,039.<\/p>\n

\"Bitcoin<\/div>\n","protected":false},"excerpt":{"rendered":"

In a newly released memo dated January 13, 2025, Matt Hougan, Chief Investment Officer (CIO) at Bitwise, argues that the phenomenon of corporations purchasing Bitcoin for their treasuries is far more widespread and influential than most investors realize. According to Hougan, \u201cWe\u2019ll see hundreds of companies buy Bitcoin for their treasuries over the next 12-18 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-7580","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/7580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7580"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/7580\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}