Bitcoin is transitioning from trading platforms to corporate balance sheets, and by the decade’s end, this could become the norm, suggests one analyst.
“I project that by 2030, approximately 25% of the S&P 500 will incorporate BTC into their balance sheets as a long-term asset,” stated Elliot Chun, a partner at Architect Partners, in a recent market overview.
This strategy—utilizing bitcoin as a treasury reserve asset—was unconventional when Strategy, previously known as MicroStrategy, first embraced it in August 2020. The firm regarded BTC as a safeguard against inflation, a means of diversification, and a method to stand out in the marketplace.
Former CEO Michael Saylor’s enthusiastic promotion of bitcoin turned the company into a proxy for BTC exposure. Since then, the stock of MicroStrategy has skyrocketed more than 2,000%, significantly surpassing both the S&P 500 and bitcoin during the same timeframe, Chun noted.
Recently, GameStop has joined the trend, announcing this week that it plans to raise $1.3 billion through a convertible note to purchase bitcoin. The company’s stock initially rallied after the announcement but has since experienced a correction, declining nearly 15% over the week.
Chun posited that treasurers may soon find themselves at risk not for opting to buy bitcoin but for neglecting it entirely. “Remaining inactive is no longer a viable strategy,” he asserted.
As per BitcoinTreasuries data, publicly traded companies currently hold a total of 665,618 BTC, accounting for roughly 3.17% of the entire cryptocurrency supply. Strategy claims the majority stake with 506,137 BTC.
Read more: U.S. Listed Firms Continue Bitcoin (BTC) Treasury Adoption
