According to Matt Hougan, CIO of Bitwise, hundreds of companies will add the cryptocurrency to their balance sheets over the next 12–18 months, thanks in part to new accounting standards.
The corporate world is gearing up for widespread Bitcoin adoption. Matt Hougan, Chief Investment Officer of Bitwise, supports this view, outlining a scenario in an investor note that is set to reshape the digital asset market: over the next 12–18 months, hundreds of companies will include Bitcoin in their treasury reserves.
For the coming years, Bitwise’s CIO predicts a snowball effect:
“Corporate adoption will grow exponentially as more companies start to embrace the digital asset.”
According to Hougan, this trend could drive Bitcoin prices upward. His analysis starts with the case of MicroStrategy, which acquired over 257,000 bitcoins in 2024 alone, surpassing the entire year’s newly mined supply. To date, the company holds 450,000 bitcoins and plans to raise an additional $42 billion for further purchases.
But MicroStrategy is not the only company to add Bitcoin to its treasury. Currently, 70 publicly traded companies, including Tesla, Block, and Coinbase, collectively hold over 140,000 bitcoins. Additionally, private entities like SpaceX, Tether, and Block.one own more than 368,000 bitcoins.
A decisive shift has also occurred on the regulatory front. In December, the Financial Accounting Standards Board introduced new accounting rules (ASU 2023-08) allowing companies to value bitcoins at market price, replacing the previous requirement to classify them as intangible assets subject only to impairments. Hougan explains:
“This change removes a significant barrier to corporate Bitcoin adoption.”
The motivations driving companies toward Bitcoin are varied: from seeking financial returns to hedging against fiat currency depreciation.
