tl;dr
Bernstein research forecasts that corporations could invest up to $330 billion in Bitcoin by 2029, with $205 billion expected from listed companies, primarily small, low-growth firms emulating MicroStrategy's Bitcoin treasury model. Companies with $100 million or more in cash reserves may contribute...
Bernstein research forecasts a significant shift in corporate Bitcoin investment, projecting up to $330 billion infusion by 2029. This marks a notable transition of Bitcoin from a speculative asset to a mainstream corporate treasury option.
Within the next five years, listed companies are expected to allocate approximately $205 billion toward Bitcoin acquisition. This wave will be largely driven by small, low-growth firms inspired by MicroStrategy’s pioneering approach to Bitcoin as a treasury asset.
Firms holding $100 million or more in cash reserves could contribute a substantial $190 billion to Bitcoin allocations. Additionally, smaller, high-growth companies might add about $11 billion by 2026, indicating broadening corporate interest across different business profiles.
Michael Saylor’s MicroStrategy stands as the industry leader, holding over 555,450 BTC valued at $52.5 billion. The company’s dollar cost average purchase price of $68,569 per Bitcoin has yielded nearly 38% unrealized profit, exceeding $14 billion, which has positively influenced its share price by 97% since the start of the year.
On a wider scale, public companies collectively hold more than 723,000 BTC, worth over $68 billion, positioning Bitcoin as a significant asset class in corporate portfolios. However, Bernstein cautions that not every company can replicate MicroStrategy’s success, as Bitcoin price volatility remains a critical factor.
Bernstein highlights that the Model’s appeal lies in offering smaller, low-growth companies a fresh pathway for value creation amidst limited traditional growth opportunities. The potential inflows underscore a growing institutional embrace of cryptocurrency, setting the stage for an evolving market dynamic by the end of the decade.