Corporate Bitcoin holders are “poised to explode,” according to Bitwise CIO

Matt Hougan, Chief Investment Officer of Bitwise, predicts a significant rise in the number of corporations adding Bitcoin to their balance sheets, driven by the influence of MicroStrategy and shifting regulatory conditions in the U.S. under President-elect Donald Trump. In a recent research note, Hougan emphasized that MicroStrategy’s Bitcoin strategy represents a “bona fide megatrend” that is likely to inspire more companies to adopt Bitcoin as a reserve asset.

According to Hougan, the growing success of spot Bitcoin exchange-traded funds (ETFs) and increasing cryptocurrency adoption in the U.S. are helping to eliminate the reputational risks that Bitcoin once faced. Furthermore, changes to accounting rules, particularly those introduced by the Financial Accounting Standards Board (FASB) in December, have made it more attractive for companies to hold Bitcoin.

Under the new reporting requirements of ASU 2023-08, firms can now mark down Bitcoin price declines while also adjusting disclosures when Bitcoin’s value rises. This marks a major shift from previous rules, which treated Bitcoin as an intangible asset, allowing companies only to record losses and not gains. Hougan noted that if 70 companies were willing to add Bitcoin to their balance sheets when accounting rules dictated that its value could only fall, the number of companies doing so now—under more favorable rules—could soar. He speculated that the number might rise to 200, 500, or even 1,000 companies adopting Bitcoin as a reserve asset.

Hougan’s comments came just days before Trump’s inauguration on January 20, and shortly after MicroStrategy made an additional acquisition of Bitcoin. Michael Saylor, the executive chairman of MicroStrategy, revealed that the company holds approximately 450,000 BTC, valued at over $43 billion, and plans to buy more. In 2024 alone, MicroStrategy spent $22 billion to acquire 258,320 BTC—surpassing the 218,829 BTC mined globally that year. Saylor has also stated that the company intends to acquire an additional $42 billion in Bitcoin, a move that would consume nearly three years’ worth of newly mined BTC.

Hougan’s prediction reflects a growing trend of institutional adoption of Bitcoin, particularly as the regulatory and accounting landscape becomes more favorable, signaling a new phase in Bitcoin’s journey as a mainstream corporate asset.