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Corporate adoption of Bitcoin rises sharply in 2024

GrafaGrafa2024/09/09 06:15
By:Mahathir Bayena

Corporate adoption of Bitcoin (CRYPTO:BTC) has grown significantly in 2024, according to a new report from River, a U.S.-based Bitcoin-focused financial services company.

The report highlights the increasing use of Bitcoin in corporate treasuries and provides insights into current trends and future outlooks.

According to River’s findings, businesses collectively held 683,332 Bitcoin (BTC) as of August 2024, making up 3.3% of the total Bitcoin supply.

This reflects a notable 587% growth in corporate holdings since 2020 and a 30% rise over the past year.

The report also points out that U.S.-based companies are leading in Bitcoin holdings, comprising 49.3% of the total, valued at approximately $19.7 billion.

MicroStrategy and Tether (CRYPTO:USDT) are the largest corporate holders, accounting for 85% of Bitcoin purchases by businesses in the first half of 2024.

The report underlines that corporate adoption of Bitcoin has surged over the past year, with the number of publicly traded companies holding Bitcoin growing by 40% between September 2023 and August 2024.

River predicts this trend will continue, with corporate Bitcoin holdings projected to increase by 204 to 519 BTC daily until 2026.

The report also notes that businesses prefer holding actual Bitcoin over exchange-traded funds (ETFs).

Holding ETFs could classify them as investment companies under the Investment Company Act of 1940, resulting in increased regulatory costs and reporting requirements.

From River’s perspective, “Real Bitcoin is classified as a commodity, whereas ETFs are considered securities. For most businesses, being designated as an investment company introduces significant costs.”

River’s client base has grown by 68% since August 2023, and 70% of these businesses have held onto their Bitcoin as a long-term asset.

Furthermore, 95% of surveyed clients plan to expand their Bitcoin holdings, driven by the potential to hedge against inflation and diversify their treasuries.

The report cites examples like Summerplace Homes, which uses Bitcoin as a hedge against economic downturns, and Real Bedford F.C., which has adopted Bitcoin as both a treasury asset and a central element of its brand.

While Bitcoin adoption in corporate treasuries is not yet widespread, River concludes that its potential for strategic financial advantages is compelling more businesses to consider it.

At press time, the Bitcoin (BTC) price was $54,944.06.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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