Just recently, GameStop followed MicroStrategy‘s example and announced plans to raise $1.3 billion by issuing bonds to be invested in Bitcoin. This follows a prediction from crypto advisory firm Architect Partners, which predicts that by 2030, a quarter of S&P 500 companies will be invested in Bitcoin.
“I estimate that by 2030, a quarter of S&P 500 companies will have BTC on their books as a long-term asset,” wrote Elliot Chun, partner at Architect Partners, in a March 28 blog post. He added that this change is largely being driven by pressure on treasury managers to at least experiment with Bitcoin.
“If you try it and it works, you’re a genius. If it doesn’t work, at least you tried. But if you don’t try it and don’t have a good reason to, and Bitcoin performs, your job could be on the line,” Chun said. The most prominent example is MicroStrategy, which is by far the largest Bitcoin holder among publicly traded companies, according to data from BitcoinTreasuries.NET.
Experts such as Cathie Wood (ARK Invest), Mike Novogratz (Galaxy Digital), Brian Armstrong (Coinbase), and Jack Dorsey (Blockchain) see Bitcoin in the range of $500,000 to $1 million, or even higher, by 2030.
However, Chun warns against unrealistic expectations: “Companies pursuing this strategy in the hope of replicating MicroStrategy’s performance will be disappointed.” MicroStrategy is an isolated case in that the company provided US asset managers with early access to Bitcoin, when they were not yet allowed to hold the cryptocurrency directly. That changed with the SEC‘s approval of several Bitcoin spot ETFs on January 10, 2024.
The idea that a quarter of the companies in the S&P 500 will soon be investing in Bitcoin seems a bit far-fetched at the moment. The negative reaction to GameStop’s bond offering, which caused the stock to plummet by 22 percent, also reinforces Chun’s assessment that MicroStrategy may be an isolated case. However, investors remain committed to Bitcoin for the long term.
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