The CIO of Bitwise calls Bitcoin the 'best horse in the race' for public companies' treasury.

Bitwise's Chief Investment Officer, Matt Hougan, stated that the "big trend" of publicly traded companies adding Bitcoin (BTC) to their treasury reserves will continue to grow, as this movement is still in its early stages.

Drivers and barriers to adoption

Historically, companies often placed surplus funds in short-term bonds or deposited them in banks to preserve value. However, Hougan argues that unprecedented deficits and current money creation have driven CFOs to seek alternative forms of value preservation.

"Companies need an alternative way to protect their assets from depreciation. They are turning to the best horse in this race, which is Bitcoin."

Hougan also stated that the stock market has recorded an increase in value for companies announcing buybacks, thereby reinforcing the appeal of exposure to the balance sheet.

He links the demand from companies with the increasing confidence in the role of Bitcoin as a type of "digital gold." Binance Research's "Monthly Market Information" report in June confirmed this rapid growth. According to the report, 116 public companies currently control approximately 809,100 BTC as of May 31, up from 312,200 BTC a year earlier. More than 25 companies have announced new allocations since the beginning of April.

The average monthly purchase volume has exceeded 40,000 BTC, supported by the participation of new companies such as Trump Media, Nakamoto, GameStop, and PSG. Strategy is currently the largest holder, accounting for nearly 72% of the total.

New Interest and Prospects

Moreover, the report also points out that the all-time high price of nearly 112,000 USD has "reignited the FOMO fears of companies" as boards of directors seek both value protection solutions and inflation hedges. The report also mentions improving signals from U.S. regulations along with changes in accounting in 2025, allowing for fair value measurement and eliminating loss charges that previously hindered CFOs.

Hougan predicts that the treasury of companies could exceed 1 million BTC by 2026 if the current buying rate continues to be maintained. Meanwhile, Binance Research states that this goal is achievable in a stable macroeconomic context and with progress in regulation.

Moreover, the Chief Investment Officer of Bitwise expects that more cash-rich multinational companies will diversify this year, as concerns about the depreciation of the dollar remain a top priority in their minds. He believes this will ultimately drive the allocation of Bitcoin from a niche practice into a mainstream treasury management standard.

Mr. Teacher