Apr 24, 11:30 PM

Bloomberg: Bitcoin Stability Spurs Corporate Treasury Interest as BlackRock Notes Central Banks Diversifying

Bloomberg Intelligence has reported that the recent stability in Bitcoin's price, with volatility now lower than that of the US stock market, is prompting public companies to reconsider Bitcoin as a corporate treasury asset. The analysis highlights that, since early April, Bitcoin has maintained lower 10-day volatility compared to indices such as the Nasdaq and S&P 500. This stability is attributed to Bitcoin's resistance to derivatives and programmatic trading effects, making it a potential option for companies amid a complex global trade environment and concerns over a weakening US dollar. Firms such as MicroStrategy (now Strategy) and Tesla continue to hold substantial Bitcoin reserves, with Strategy reportedly holding over 530,000 BTC, according to a recent Bitwise report. Other notable holders include MARA Holdings, Riot Platforms, CleanSpark, Hut 8, Block, Coinbase, Metaplanet, and Bitcoin Group SE. Bloomberg Intelligence notes that the adoption of Bitcoin in corporate treasuries could increase if price stability continues, especially as new accounting rules for cryptocurrency valuation take effect in December 2024. Some companies remain cautious due to the potential impact of price fluctuations on profit and loss statements. BlackRock has stated that central banks are considering diversifying into Bitcoin, with the firm noting that 'Bitcoin thrives amid uncertainty.' In recent activity, BlackRock's Bitcoin ETF purchased 3,500 BTC, while US Bitcoin ETFs collectively acquired 4,750 BTC in a single day, compared to 450 newly mined coins.