Bitcoin Could Appear on 25% of S&P 500 Balance Sheets by 2030, Analyst Says
Bitcoin is gaining traction not only on trading desks but also in corporate treasuries, and one analyst predicts that by 2030, a quarter of the S&P 500 companies will have BTC on their balance sheets as a long-term asset. Elliot Chun, a partner at Architect Partners, believes that holding bitcoin as a treasury reserve asset will become standard practice in the coming years.
The trend of companies holding bitcoin in their treasuries started when Strategy (formerly known as MicroStrategy) adopted this strategy in August 2020. The firm saw BTC as a hedge against inflation, a diversification tool, and a way to differentiate itself in the market. CEO Michael Saylor’s public endorsement of bitcoin turned MicroStrategy into a proxy for BTC exposure, leading to a surge in the company’s stock price by over 2,000%.
Following MicroStrategy’s lead, GameStop recently announced that it would raise $1.3 billion through a convertible note to acquire bitcoin for its treasury. While the initial announcement boosted the company’s stock price, it later faced a correction, dropping nearly 15% for the week.
Chun argues that treasurers may soon face career risk for ignoring bitcoin rather than buying it. He emphasizes that doing nothing is no longer a defensible strategy in today’s market environment.
Currently, publicly listed companies hold a total of 665,618 BTC, representing around 3.17% of the cryptocurrency’s total supply. Strategy holds the largest share with 506,137 BTC in its treasury.
As more companies embrace bitcoin as a treasury asset, it is clear that the trend is here to stay. With the potential for significant growth and diversification benefits, it is likely that holding bitcoin in corporate treasuries will become a common practice in the near future.
