Main Points:
- U.S. companies are expected to increase their Bitcoin holdings, possibly reaching ＄10,433,052,839 by 2026.
- Currently, corporations hold about 3% of the circulating Bitcoin supply, with projections indicating a further rise in holdings.
- Strong corporate demand, led by companies like MicroStrategy, could drive Bitcoin acquisitions to an average of 519 BTC per day under bullish scenarios.
- River, a Bitcoin technology company, highlights corporate Bitcoin purchases as part of broader financial strategies.
As Bitcoin continues to gain acceptance as a financial asset, a growing number of U.S. corporations are incorporating it into their financial reserves. River, a Bitcoin technology company, released a report predicting a significant rise in corporate Bitcoin holdings by 2026. According to the report, businesses could purchase as much as ＄10,433,052,839 in Bitcoin over the next two years, spurred by financial incentives and inflation concerns.
Corporate Bitcoin Holdings Surge
In August 2024, corporations held approximately 3% of the total circulating Bitcoin, a substantial increase of 587% since 2020. The companies purchasing Bitcoin are bypassing traditional financial instruments such as ETFs (Exchange-Traded Funds), preferring to buy Bitcoin directly to avoid classification as investment firms.
Currently, corporate holdings amount to about 680,000 BTC, and this figure could rise to between 790,000 and 940,000 BTC by 2026. This growth reflects an increasing interest in Bitcoin as a treasury asset, driven by concerns over inflation and the declining value of cash reserves.
Strong Corporate Demand and Projections
River’s report also predicts a bullish scenario where major U.S. corporations could significantly increase their Bitcoin purchases. Companies like MicroStrategy, Tether, Coinbase, and Square, which have already implemented Bitcoin strategies, are expected to continue acquiring the asset at a rate of 204 BTC per day.
In a more optimistic forecast, River estimates that if 10% of U.S. companies allocate 1.5% of their financial reserves to Bitcoin within the next year and a half, daily Bitcoin purchases could reach as much as 519 BTC. This would equate to roughly ＄10,433,052,839 in Bitcoin acquisitions.
The Argument for Bitcoin as a Treasury Asset
River’s report underscores the shortcomings of traditional financial strategies that rely heavily on cash and cash equivalents. Companies that stick to conventional financial strategies are seeing their cash reserves erode due to inflation. For example, Apple’s financial department reportedly lost ＄13,910,737,119 over a decade when adjusted for inflation.
This financial drain is prompting companies to seek alternatives such as Bitcoin, which is viewed as a hedge against inflation and a more sustainable asset.
The Case of MicroStrategy
MicroStrategy has been at the forefront of the corporate Bitcoin trend. Since 2022, the company has aggressively purchased Bitcoin, funded through stock issuances, convertible bonds, and debt offerings. Over the past four years, MicroStrategy’s market capitalization has risen from ＄13,215,200,263 to ＄29,908,084,805, a remarkable 900% increase in its stock price.
As of August 2024, MicroStrategy holds 226,500 BTC. The company recently announced plans to raise ＄2,086,610,568 through convertible bonds to further bolster its Bitcoin holdings. River’s report attributes MicroStrategy’s success to its dependence on the liquidity of the U.S. capital markets, enabling it to sustain its aggressive Bitcoin acquisition strategy.
Global Impact: MetaPlanet and SBI VC Trade
The corporate Bitcoin acquisition strategy is not limited to U.S. companies. River’s report also highlights Japan-based MetaPlanet, an emerging player that has embraced Bitcoin as a financial asset. MetaPlanet, listed on the Tokyo Stock Exchange Standard, began purchasing Bitcoin in April 2024 and by August had accumulated 360 BTC.
MetaPlanet’s move has drawn attention, particularly after its partnership with SBI VC Trade, one of Japan’s leading cryptocurrency exchanges. This collaboration marks a significant milestone for corporate Bitcoin adoption in Japan, underscoring the global nature of the trend.
The growing trend of U.S. corporations investing in Bitcoin is transforming the cryptocurrency landscape. Companies are increasingly recognizing Bitcoin’s potential as a treasury asset and a hedge against inflation. River’s report suggests that the coming years could witness a surge in Bitcoin acquisitions by corporate entities, with total holdings potentially reaching ＄10,433,052,839 by 2026. As firms like MicroStrategy and MetaPlanet continue to make substantial investments, Bitcoin’s role in corporate finance is set to expand further, influencing both U.S. and global markets.
