By Chris Hollingworth 
Around a quarter of companies listed on the S&P 500 are expected to have invested in Bitcoin by 2030, driven by the fear among treasury managers that they could jeopardize their positions if they miss out on potential gains from the cryptocurrency. Elliot Chun, a partner at Architect Partners, shared in a blog post on March 28 his anticipation that by 2030, a significant portion of the S&P 500 companies will hold Bitcoin as a long-term asset on their balance sheets.
Chun highlighted that the shift towards Bitcoin adoption will be primarily motivated by treasury managers feeling the pressure to at least explore the potential of integrating Bitcoin into their corporate strategies. He emphasized the importance of taking the initiative to experiment with Bitcoin, as failing to do so without valid reasons could put their job security at risk.
MicroStrategy (MSTR) currently stands as the largest corporate holder of Bitcoin among the 89 publicly traded firms that have incorporated the cryptocurrency into their balance sheets, as reported by BitcoinTreasuries.NET. The recent announcement of GameStop’s $1.3 billion convertible notes offering on March 26 signals a potential addition to this list, as the company plans to utilize the funds to make its initial Bitcoin purchase.
As of now, only Tesla and Block are the S&P 500-listed companies that hold Bitcoin, implying that at least another 123 firms within the index would need to invest in Bitcoin by 2030 for Chun’s projection to materialize.
Tech investors and industry leaders, including Cathie Wood, Mike Novogratz, Brian Armstrong, and Jack Dorsey, foresee a bullish future for Bitcoin, with some predicting price targets ranging from $500,000 to $1,000,000 by 2030. Companies that have adopted Bitcoin treasury strategies have experienced positive impacts on their stock prices, with MicroStrategy’s stock price surging over 2,000% since its initial Bitcoin investment in August 2020, significantly outperforming both Bitcoin and the S&P 500 during the same period.
However, it is crucial to differentiate between firms that utilize Bitcoin for treasury diversification and risk management purposes and those aiming to transform their entire business models to become leaders in Bitcoin treasury management. According to Chun, companies seeking to replicate MicroStrategy’s exceptional performance may face disappointment, as MicroStrategy is considered a unique case in this regard.
Despite the growing adoption of Bitcoin as a treasury asset, Chun noted that using Bitcoin in this capacity remains an unproven strategy for firms looking to hedge against US dollar inflation or diversify their treasuries for risk management. Comparing Bitcoin to gold, Chun highlighted the advantages of Bitcoin’s digital nature, including its GAAP recognition as a tangible asset with a liquid and fungible profile.
In a recent development, Bitwise launched the Bitwise Bitcoin Standard Corporations ETF on March 11, aiming to track companies with significant Bitcoin holdings in their corporate treasuries. As the trend towards Bitcoin adoption among corporations continues, the landscape of corporate treasury management is poised for further evolution in the coming years.
