Bitcoin May be on 25% of S&P 500 Firms' Balance Sheets by 2030: Architect Partners
'Across all the different strategies and implementations, I anticipate that by 2030, a quarter of the S&P 500 will have BTC somewhere on their balance sheets as a long-term asset,' Elliot Chun, a partner at Architect Partners, wrote in a market snapshot.
The strategy—holding bitcoin as a treasury reserve asset—was unorthodox when Strategy, formerly known as MicroStrategy, first adopted it in August 2020. The firm framed BTC as a hedge against inflation, a diversification tool, and a way to distinguish itself in the market.
Then CEO Michael Saylor's highly public embrace of bitcoin transformed the company into a de facto proxy for BTC exposure. Since then, MicroStrategy stock has surged more than 2,000%, far outpacing both the S&P 500 and bitcoin over the same period, Chun pointed out.
GameStop is the latest company to follow suit, announcing this week that it would raise $1.3 billion through a convertible note to acquire bitcoin. Its stock initially surged following the announcement but has since endured a correction, falling nearly 15% for the week.
Chun argued that treasurers may soon face career risk not for buying bitcoin, but for ignoring it altogether. 'Doing nothing is no longer a defensible strategy,' he wrote.
According to BitcoinTreasuries data, publicly listed companies currently hold 665,618 BTC, around 3.17% of the cryptocurrency's total supply. Strategy holds the lion's share, 506,137 BTC.
Read more: U.S. Listed Firms Continue Bitcoin (BTC) Treasury Adoption
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