Spot Bitcoin exchange-traded funds? That’s so 2024.
Bitwise is betting on what could be 2025′s next Bitcoin trend: companies stacking Bitcoin on their balance sheets.
The asset manager recently filed an application with the US Securities and Exchange Commission for an ETF comprising listed companies that use Bitcoin as a reserve asset.
Firms like MicroStrategy and Tesla are early leaders in this charge, reframing Bitcoin as not just an investment but also as a key strategic asset.
“The Bitcoin treasury operations virus is spreading,” said Nate Geraci, president of The ETF Store.
If approved, the Bitwise Bitcoin Standard Corporations ETF would track companies holding Bitcoin, offering investors another way to gain indirect exposure to crypto.
Who’s in
Twenty-two companies currently meet the standout criteria for inclusion in the proposed ETF: holding at least 1,000 BTC and a market cap of over $100 million.
At the top of the list is MicroStrategy, the undisputed leader in corporate Bitcoin adoption.
Under executive chairman Michael Saylor, the company has made Bitcoin the cornerstone of its investment strategy, amassing 444,262 Bitcoin worth nearly $43 billion.
Since implementing this strategy in 2020, MicroStrategy’s stock has multiplied 30-fold.
Following closely are major US Bitcoin miners like Marathon Digital, Hut 8 Mining, Riot Platforms, and CleanSpark.
These companies collectively hold tens of thousands of Bitcoin, with Marathon leading the pack at 44,394.
Looking to adopt the Saylor strategy, KULR Technology Group recently announced its own Bitcoin treasury strategy. The aerospace and energy management firm purchased 217 Bitcoin.
“Welcome to the future of money,” tweeted CEO Michael Mo. He also thanked Michael Saylor for “raising awareness for our new BTC treasury strategy.”
KULR’s stock price climbed 60% following the announcement.
Who’s out
But while Bitcoin’s appeal as a treasury asset is growing, many large-cap companies remain unconvinced.
Microsoft shareholders recently rejected a proposal to explore adding Bitcoin to its balance sheet.
The vote was minuscule — only a little over half of a percent voted for the resolution.
Executives cited Bitcoin’s volatility and the need for stable, predictable investments to ensure liquidity and operational funding.
Amazon has become the next target of the conservative think tank behind the Microsoft proposal.
The National Center for Public Policy Research has filed more than 60 proposals at Fortune 500 companies urging them to explore Bitcoin as a hedge against inflation.
In its latest push, the NCPPR argued Amazon has a fiduciary duty to consider holding Bitcoin, even as little as 5% of its assets, to maximise shareholder value.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
