United States Companies Embrace Bitcoin for Treasury Operations
In a significant development for the cryptocurrency landscape, businesses in the United States are inching closer to adopting what Bitcoin (BTC) advocates refer to as “the Bitcoin standard” in their treasury operations. This shift gains momentum as a new Bitcoin-based Exchange-Traded Fund (ETF) awaits approval, further embedding BTC into the fabric of Wall Street.
The Anticipated Bitwise Bitcoin Standard Corporations ETF
On December 26, Bitwise took a pivotal step by filing with the Securities and Exchange Commission (SEC) for the launch of the “Bitwise Bitcoin Standard Corporations ETF.” This ETF aims to invest in companies with a market capitalization exceeding $100 million, provided they hold a minimum of 1,000 BTC in their corporate treasuries.
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By introducing this ETF, Bitwise seeks to offer Wall Street investors indirect exposure to Bitcoin through the stock market. If approved, the proposed fund could inspire more firms to emulate the strategy pioneered by MicroStrategy (NASDAQ: MSTR).
Nate Geraci, president of ETF Store and host of the ETF Prime Podcast, remarked, “The Bitcoin treasury operations trend is gaining momentum.”
SEC Filing: The Potential Game-Changer
The SEC filing for the Bitwise Bitcoin Standard Corporations ETF could be a turning point in Bitcoin’s journey towards mainstream corporate finance. Let’s explore the companies positioned to participate in this fund.
Eligible Companies for the Bitwise Bitcoin Standard Corporations ETF
Bitwise’s ETF filing targets companies with substantial Bitcoin holdings, reflecting a growing trend among corporations.
Leading Companies with Significant Bitcoin Holdings
MicroStrategy has taken the lead with an impressive 444,262 BTC in its treasury, setting a benchmark for corporate Bitcoin adoption. Tesla (NASDAQ: TSLA) follows closely with 9,720 BTC in its reserves. Additionally, Semler Scientific (NASDAQ: SMLR) has embraced the Bitcoin standard, holding 2,084 BTC.
Emerging Participants in the Bitcoin Treasury Trend
Publicly traded companies like KULR Technology Group have recently announced a $21 million investment in Bitcoin, joining the trend. However, with 217.2 BTC, it falls short of the eligibility criteria for the Bitwise Bitcoin Standard Corporations ETF.
Companies such as Rumble, LQR House, RemixPoint, Genius Group, Cosmos Health, and Jiva Technologies have declared plans to allocate portions of their treasuries to Bitcoin, with investments ranging from $1 million to $20 million.
According to BitcoinTreasuries.net data, as of December 27, 2024, 21 companies worldwide, including 13 in the U.S., meet the criteria for Bitwise’s new ETF.
Bitcoin’s Growing Influence on Corporate Finance
As Bitcoin’s market value continues to soar, reaching an all-time high of over $108,000 in December 2024, the ETF’s approval could significantly impact corporate finance strategies. By investing in companies with at least 1,000 BTC, valued at approximately $100 million, Bitwise aims to provide investors with exposure to firms actively adopting Bitcoin.
The ETF’s weighting based on Bitcoin holdings could also shine a spotlight on smaller companies with substantial crypto reserves, offering immense growth potential. This initiative represents a crucial moment in Bitcoin’s integration into mainstream corporate finance, paving the way for a potential Bitcoin standard.
