The herd is on the way...
According to a recent poll by The Block, respondents say companies listed on the S&P 500 will be holding bitcoin by the end of next year.
I can say I definitely agree with them.
As it stands now, and as far as I am aware, no S&P companies hold bitcoin on their balance sheet.
We have all heard of MicroStrategy and Square buying bitcoin, but neither are listed on the S&P.
Interestingly enough, Square is possibly eligible for inclusion on the S&P as soon as next year.
Irregardless, many people (myself included), think there will be at least a couple of companies holding bitcoin by this time next year:
The Block put out their annual outlook survey where they asked respondents to leave their opinion on how many companies will have bitcoin on their balance sheet by this time next year.
There were 106 respondents and 51.4% of them said they think there will be between 5-9 companies with bitcoin on their balance sheet by this time next year.
The next most popular answer with 29.7% of the votes said that between 1-4 companies would hold bitcoin.
In third place, with 16.2% of the votes, said that 10 or more companies would hold bitcoin on their balance sheet by this time next year.
Less than 3% of respondents said they don't think any S&P companies will hold bitcoin by this time next year.
The game changer for bitcoin...
I have said in several posts over the years that corporations holding bitcoin as a treasury asset was not part of my base case investment for bitcoin.
I never really expected them to get involved with bitcoin in any meaningful way.
I knew family offices, insurance companies, private equity funds, endowments, etc could all get involved at some point but I never really expected the biggest companies in the world to be buyers.
However, as it turns out, they are likely to be some of the biggest and most important investors in bitcoin going forward.
The trend was mostly started by MSTR and Michael Saylor, putting over a billion dollars into bitcoin and has since been followed by a couple other publicly traded companies.
The carrot has also been dangled in front of Elon Musk recently, which is interesting because his company Tesla just got listed on the S&P 500.
Sooner or later the Facebook's, Google's, Apples, and Microsofts of the world are going to be forced to put their massive cash piles to work in bitcoin or risk drawing the ire of angry shareholders as the dollar does nothing over the coming years.
They can continue to hold that cash and lose purchasing power or they can jump in an asset that is doubling every year on average since it was created.
Sure there is risk, and they probably won't put all their cash (which they shouldn't), but some of it?
That makes a lot of sense on a lot of levels.
I think by the end of next year we are going to see a handful of companies with bitcoin on their balance sheet, possibly a lot more than a handful.
The next year is going to be a lot of fun for bitcoin investors!
Stay informed my friends.
-Doc