By 2030, 25% of S&P 500 Companies Will Hold Bitcoin as a Long-Term Asset - Architect Partners' Elliot Chun Predicts

By 2030, an estimated 25% of companies listed on the S&P 500 are projected to hold Bitcoin as a long-term asset, according to Elliot Chun, a partner at tech-focused financial advisory firm Architect Partners.

By 2030, an estimated 25% of companies listed on the S&P 500 could be holding Bitcoin as a long-term asset, according to Elliot Chun, a partner at Architect Partners, a financial advisory firm with a focus on the technology sector.

In a blog post on Wednesday, Chun discussed the increasing pressure on treasury managers to consider adding Bitcoin to their portfolios. This urgency stems from the prospect of potential gains versus the risk of job security should they forgo such an investment opportunity.

“If you tried it and it worked, you’re a genius. If it didn’t work, at least you made an attempt. But if you didn’t try and don’t have a good story for not trying, then your position might be in a spot,” Chun remarked.

At present, only Tesla (NASDAQ:TSLA) and Block (NYSE:SQ) have Bitcoin in their balance sheets among the S&P 500 firms. To reach Chun’s prediction of 125 companies by 2030, at least 123 more would need to begin investing in Bitcoin.

Among the 89 public companies that own Bitcoin, MicroStrategy (NASDAQ:MSTR) is the largest institutional holder. Recent developments, such as GameStop’s (NYSE:GME) $1.3 billion offering of convertible notes to fund further Bitcoin acquisition, suggest that more firms may soon join this group.

Industry leaders, including ARK Invest’s Cathie Wood and Galaxy Digital’s Mike Novogratz, have made predictions of Bitcoin reaching valuations between $500,000 and $1,000,000 by 2030.

Companies that have adopted Bitcoin treasury strategies have often seen a positive correlation with their share prices. For instance, MicroStrategy’s stock has surged over 2,000% since its initial Bitcoin investment in August 2020, significantly outpacing both Bitcoin and the S&P 500 during the same period.

However, Chun cautioned against firms attempting to replicate MicroStrategy’s success, suggesting they are likely to be met with disappointment. He highlighted the distinction between utilising Bitcoin for treasury diversification and fundamentally restructuring business models to lead in Bitcoin holdings.

Despite its increased adoption, Chun described Bitcoin as an “unproven strategy” for companies seeking to mitigate inflation risks or diversify treasury management.

However, he argued that Bitcoin offers greater flexibility as a treasury asset compared to gold, which poses logistical challenges for storage and transportation. Earlier this month, Bitwise launched the Bitwise Bitcoin Standard Corporations ETF (NYSE:BITC), which aims to track companies holding at least 1,000 Bitcoin in their corporate treasuries. This ETF underscores the growing institutional interest in cryptocurrency investments.