Elliot Chun: 25% of S&P 500 Companies Will Hold Bitcoin by 2030

Companies are increasingly adding Bitcoin to their balance sheets, viewing it as a hedge against U.S. dollar inflation and a way to diversify financial reserves.

Moreover, firms that have already implemented a Bitcoin strategy have seen significant gains, both in the value of their crypto holdings and in their overall market performance. This success has caught the attention of investors and financial professionals around the world.

The first to take this step was MicroStrategy (now known as Strategy), which added Bitcoin to its corporate treasury on August 20, 2020. As a result, this move provided institutional investors with exposure to a highly liquid and fungible digital asset.

Related: MARA Holdings to Sell $2B in Stock to Fund New Bitcoin Purchases

The History of Bitcoin Adoption in Corporate Reserves

Compared to physical gold, which requires secure storage and often presents accounting challenges, Bitcoin is recognized as a tangible asset under GAAP standards.

According to data from Bitcoin Treasuries at the time of writing, public companies collectively hold 665,621 BTC, representing ~3.35% of Bitcoin’s total supply. For example, GameStop recently joined this list, highlighting the growing appeal of this strategy. While most of the companies holding BTC are not market leaders, the list has grown to include 89 firms.

Related: GameStop Stock Tanks 22% After $1.3B Bond Plan for Bitcoin Buys

Forecasts and Market Impact

Experts believe the corporate adoption of Bitcoin has strong long-term potential. Elliot Chun, a partner at Architect Partners, predicts that by 2030, 25% of S&P 500 companies will hold BTC as a long-term asset. He argues that such a strategy could offer CFOs an added layer of protection for corporate reserves in an increasingly volatile economic environment.

If you tried it and it worked, you’re a genius. If you tried it and it didn’t work, you at least tried. Either way, you likely keep your job. But if you didn’t try it and can’t provide a good reason, your job may be at risk,

Chun wrote.

The experiences of companies like Strategy, Metaplanet, Riot Platforms, MARA Holdings, GameStop, and others highlight growing market interest in adopting new financial instruments. However, firms looking to replicate Strategy’s success may face unexpected challenges due to the inherent volatility of cryptocurrencies.

Nevertheless, the integration of BTC into corporate reserves is already emerging as one of the most notable trends in modern finance.

Related: CoinShares Criticizes MicroStrategy’s Bitcoin Strategy