Corporate Treasuries Will Add $330 Billion in Bitcoin by 2029: Bernstein
Corporate investment in Bitcoin is projected to reach $330 billion over the next five years, driven by large companies purchasing the cryptocurrency. Analysts indicate that smaller firms will likely adopt the Bitcoin treasury model pioneered by Nasdaq-listed Strategy (MSTR), which began buying Bitcoin in 2020 and now holds 555,450 BTC valued at $52.2 billion. Smaller companies with low growth and high cash reserves are seen as fitting candidates for this strategy, although not all will succeed by merely replicating MSTR's approach. Bitcoin is currently trading around $94,000, having increased nearly 50% over the past year. Companies like Semler Scientific and Metaplanet are already emulating MSTR's model, with recent acquisitions of Bitcoin. Advocates view Bitcoin as a hedge against inflation, while analysts caution that MSTR's model is risky due to Bitcoin's volatility. MSTR's stock has surged significantly since its initial Bitcoin purchase in August 2020.
