Matt Hougan shared with his clients that MicroStrategy’s plan for Bitcoin aligns with a significant, long-term trend – one that is likely to encourage other businesses to view Bitcoin as a valuable reserve asset.
As a researcher, I foresee an increase in corporations incorporating Bitcoin (BTC) into their financial reserves, a trend likely fueled by MicroStrategy’s influence and the evolving regulatory landscape in the United States under President-elect Donald Trump’s administration.
According to a research note by Hougan, the thriving market for spot Bitcoin exchange-traded funds and growing cryptocurrency acceptance within the U.S. have been instrumental in mitigating some of the past negative perceptions associated with Bitcoin.
Newly implemented adjustments to accounting guidelines now offer extra motivations for companies contemplating incorporating Bitcoin in their financial records. In December, the Financial Accounting Standards Board unveiled fresh reporting standards outlined in ASU 2023-08.
Under the new guidelines, institutions can now lower their Bitcoin value during market drops and update their disclosures when prices rise. This is a significant change from the old rules that classified Bitcoin as an intangible asset, requiring companies to report losses but not gains.
Given that approximately 70 firms considered incorporating Bitcoin into their financial records despite a potential decrease in value, one might wonder if the number of companies opting for such an inclusion has multiplied significantly today. Could we be looking at two hundred, five hundred, or even a thousand firms embracing this digital currency?
Matt Hougan, Bitwise CIO
On January 19th, Hougan’s note was circulated, just preceding Trump’s inauguration on the 20th, and following MicroStrategy’s recent increase in Bitcoin holdings. Michael Saylor, chairman of MicroStrategy, mentioned that the company currently owns approximately 450,000 Bitcoins, valued over $43 billion, with intentions to acquire even more.
In the year 2024, MicroStrategy invested approximately $22 billion purchasing 258,320 Bitcoins – a number greater than the entire annual production of 218,829 Bitcoins mined throughout the year. Saylor hints that his company plans to buy an additional $42 billion in Bitcoin, which is almost equivalent to three years’ worth of freshly mined Bitcoin supply.
Read More
- PYTH PREDICTION. PYTH cryptocurrency
- The Final ‘Gladiator II’ Trailer Has Arrived
- Solana L2 Sonic includes TikTok users in airdrop
- DC’s ‘Clayface’ Movie From Mike Flanagan Lands 2026 Release
- IMX PREDICTION. IMX cryptocurrency
- Aamir Khan says India would go ‘ballistic’ if Laapataa Ladies wins Oscars; ‘We have been dying to…’
- Crypto VC funding roundup: Riot snags over $594m, BVNK raises $50m
- ‘Fast and Furious’ Star Paul Walker Remembered 11 Years After His Death
- Russell T Davies Says He “Kind Of Hopes” The Streaming Bubble Will “Pop”
- Shyam Benegal’s PICS with Shabana Azmi, Naseeruddin Shah, Kulbhushan Kharbanda & Divya Dutta from his 90th birthday bash take over internet after filmmaker’s demise
2025-01-14 18:52