Bitwise Chief Investment Officer Matt Hougan argued on Tuesday that associating the Bitcoin (CRYPTO: BTC) Treasury reserve strategy solely with MicroStrategy Inc. (NASDAQ:MSTR) would be inaccurate, as companies buying the apex cryptocurrency is now a “bona fide megatrend.”
What Happened: In a research note, Hougan stated that while the Michael Saylor-led firm walked away with most media attention, as many as 70 publicly traded companies and many private firms had Bitcoin on their balance sheets.
“I've come away thinking that this is a much bigger trend than most people realize. In fact, I think it's a bona fide megatrend,” Hougan added.
The analyst underlined that apart from cryptocurrency-focused firms like Coinbase and MARA Holdings, many non-cryptocurrency companies like Elon Musk’s Tesla have stacked Bitcoin on their books.
| Companies other than MicroStrategy | Latest Bitcoin Acquisition |
| MARA Holdings | $1.53 billion on Dec. 19, 2024 |
| KULR Technology Group | $21 million on Jan. 6 |
| Riot Platforms | $510 million on Dec. 13, 2024 |
According to BitcoinTreasuries.com, MicroStrategy was the largest corporate holder with over $43 billion in Bitcoin, followed by MARA with $4.36 billion worth of the leading digital asset. Tesla held about $944 million in Bitcoin as of this writing.
Additionally, big private companies like SpaceX also boasted significant Bitcoin holdings, valued at over $800 million.
“That's significant. It means that, even today, MicroStrategy is less than 50% of the corporate BTC market. I suspect it'll be a small fraction of it eventually,” Hougan said.
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The reputational risks linked with Bitcoin have considerably lessened in recent months, particularly after Donald Trump’s victory, with top Washington officials showing increased acceptance of cryptocurrency, Hougan stated.
Moreover, the Financial Accounting Standards Board introduced a new rule in December, changing how Bitcoin is accounted for in GAAP reporting.
Hougan said that these factors could eventually cause the number of firms buying Bitcoin to “explode” in the coming years.
Why It Matters: MicroStrategy has been aggressively issuing convertible debt and other fixed-income securities to buy Bitcoin in recent months and appears prepared to employ all corporate maneuvers at its disposal to bolster its 21/21 plan.
However, the strategy was drawn a fair bit of criticism.
Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, expressed concerns over MicroStrategy's debt-powered Bitcoin buying strategy. In an interview with Benzinga, Hayes predicted challenging times for the firm when the top cryptocurrency loses volatility.
Price Action: At the time of writing, Bitcoin was exchanging hands at $96,996.88, up 1.91% in the last 24 hours, according to data from Benzinga Pro.
Shares of MicroStrategy rose 4.19% to 342.17 during Tuesday's regular session and were up 0,56% in pre-market trading.
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