Nikolas Sargeant
Corporate entities want to add Bitcoin to their balance sheet
Bitcoin and other cryptocurrencies have gained massive adoption over the past few years. However, most of the adoption has come from retail investors. The tide is changing, though, with more corporate entities and institutional investors now seeking access to cryptocurrencies.
BitGo executive Darren Jordan, while speaking at the Token 2049 conference in London earlier today, stated that corporate entities are asking weekly to add Bitcoin to their balance sheet. He stated that "The dramatic change — and I have this conversation many times per week — is with corporates. And they are looking to allocate a small percentage of their balance sheet. That has been the most significant change we've seen over the last 12 months."
The BitGo executive added that the adoption involves a lot of education. This is because corporate bodies have to understand liquidity, regulatory frameworks and whether they're allowed to invest in cryptocurrencies is different.
Some companies have been adding bitcoins to their balance sheet over the past few years. Elon Musk's Tesla and SpaceX hold billions of dollars in bitcoins. MicroStrategy is one of the largest Bitcoin holders in the world. Over the past year, the company has invested more than $3 billion in Bitcoin. The company's Bitcoin holdings are now over $5 billion.
MicroStrategy, led by Michael Saylor, intends to increase its exposure to Bitcoin as it is bullish about the leading cryptocurrency. Bitcoin has been rallying since the start of the month and it is currently trading above $53k per coin. If the rally is sustained, Bitcoin could touch the $55k resistance level in the coming hours and likely surpass $60k over the coming days.
Bitcoin's total market cap has touched the $1 trillion for the first time in months. This comes despite Bitcoin having a market dominance of just over 44%.
