Public Companies Adding Bitcoin to Treasury Reserves to Accelerate, Says Bitwise CIO Matt Hougan
Bitwise CIO Matt Hougan recently stated that the trend of public companies adding Bitcoin (BTC) to their treasury reserves is expected to continue accelerating. According to him, this movement is still in its early stages and has the potential to grow significantly in the coming years.
In a June 10 interview on CNBC, Hougan highlighted that as of March-end, 79 listed firms collectively hold around $57 billion worth of Bitcoin. This significant amount signifies the growing interest among companies in diversifying their balance sheets with cryptocurrencies.
Drivers and Limits of Adoption
Traditionally, corporations have stored surplus cash in short-term Treasuries or bank deposits to preserve the value of their assets. However, with increasing deficits and money creation, finance chiefs are now looking for alternative ways to protect their wealth from devaluation. This has led to a growing interest in Bitcoin as a store of value.
Hougan explained, “They [corporations] need another way to protect their wealth from degradation. And they’re turning to the best horse in that race, which is Bitcoin.” He also noted that companies disclosing their Bitcoin purchases have been rewarded by equity markets, which further incentivizes others to follow suit.
The confidence in Bitcoin’s role as “digital gold” has been steadily increasing, leading to a surge in corporate demand for the cryptocurrency. According to Binance Research’s June report, 116 public firms now hold approximately 809,100 BTC, a significant increase from the previous year.
Renewed Interest and Outlook
The recent all-time high price of Bitcoin near $112,000 has reignited corporate interest in the cryptocurrency as boards seek both upside potential and protection against inflation. Additionally, improving regulatory signals in the US and upcoming accounting changes in 2025 that allow fair-value treatment have made Bitcoin more attractive to treasurers.
Hougan predicts that corporate treasuries could surpass 1 million BTC by 2026 if the current purchasing trend continues. Binance Research also believes that this target is achievable under stable macroeconomic conditions and ongoing regulatory advancements.
As concerns about dollar debasement persist, more cash-rich multinational companies are expected to diversify their assets by adding Bitcoin to their balance sheets. This shift could eventually make Bitcoin allocations a mainstream practice in treasury management.