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US Company Bitcoin Holdings Will Soar In The Next 18 Months

Key Points:

River predicts that within 18 months, about 10% of U.S. companies will invest roughly 1.5% of their cash reserves into Bitcoin.
Businesses currently own 3.3% of Bitcoin’s total supply, with significant growth in US company Bitcoin holdings.

Bitcoin technology company River has projected that over the next 18 months, approximately 10% of U.S. companies will allocate around 1.5% of their cash reserves, totalling about $10.35 billion, into Bitcoin.

River Forecasts Rise in US Company Bitcoin Holdings

According to a recent report by River, this would be a massive pivot in corporate treasury strategies, which would save value way better than current cash and short-term investments. Such an opportunity for Bitcoin to outshine these conventional assets, it maintains, makes it an attractive option for many companies.

US company Bitcoin holdings now represent 3.3% of the total supply of Bitcoin, amounting to 683,332 BTC as of August 18th, 2024. That is a stunning 587% surge since June 2020 and up 30% in just the last year. To put it another way, the number of publicly traded US company Bitcoin holdings has increased 40% in the period from September 2023 up to August 2024.

MicroStrategy at the Forefront of Massive Bitcoin Investments

MicroStrategy is one of the leading drivers of enterprise adoption of Bitcoin. In June 2024, it raised $800 million through a debt sale and used the proceeds to buy an additional 11,931 BTC. With the purchase, MicroStrategy increased its total holdings to 226,500 BTC, worth roughly $14.7 billion.

The supply-capped nature of the digital currency means that there is limited counterparty risk, making it a reliable corporate treasury asset, according to MicroStrategy’s founder, Michael Saylor.

After the wild ride for Bitcoin, which topped in January at $73,000 before declining to $53,800 recently, River remains confident that corporate interest will keep on coming.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.