Corporate Bitcoin holders ‘poised to explode’: Bitwise CIO

Matt Hougan told clients that MicroStrategy’s Bitcoin roadmap represents a “true megatrend” poised to push more companies to adopt BTC as a reserve asset.

Bitwise Chief Investment Officer Matt Hougan predicts an increase in companies adding Bitcoin (BTC) to their treasuries, driven by the influence of MicroStrategy and evolving regulatory headwinds in the United States under President-elect Donald Trump’s administration.

In a search noteHougan said the success of BTC spot exchange-traded funds and growing crypto adoption in the United States have helped dispel Bitcoin’s previous reputational risks.

Recent changes to accounting rules have provided additional incentives for companies considering adding Bitcoin to their balance sheets. In December, the Financial Accounting Standards Board introduced new reporting requirements under ASU 2023-08.

The updated rules allow institutions to mitigate falling Bitcoin prices while adjusting their disclosures when the price appreciates. This represents a notable change from previous rules, which required companies to treat Bitcoin as an intangible asset, meaning companies could only record price drops, with no provision for noting price increases.

If 70 companies were willing to add bitcoin to their balance sheet when, from an accounting perspective, it could literally only go down, imagine how many of them would now be adding it to their balance sheet. “Two hundred? Five hundred? A thousand?

Matt Hougan, CIO Bitwise

Hougan’s memo was shared days before Trump’s swearing-in, scheduled for January 20, and hours after MicroStrategy. reinforced its BTC horde. Michael Saylor, executive chairman of MicroStrategy, said the company holds about 450,000 BTC, valued at more than $43 billion, and plans to buy more.

In 2024, MicroStrategy spent $22 billion to acquire 258,320 BTC, more than the total of 218,829 BTC produced by miners throughout the year. Saylor said his company intends to acquire an additional $42 billion in Bitcoin, a sum that would represent nearly three years’ supply of newly mined BTC.