Corporate Crypto: Are We Ready for 2025?

It’s interesting to think about how crypto works in the corporate world. 2025 is shaping up to be a big year for corporate Bitcoin adoption. Bitwise's ETF strategy, which focuses on companies holding significant Bitcoin, is quite a shift in perspective.

Companies Accepting Crypto Payments

Only a handful of companies are currently leading the charge in companies accepting crypto as payment, but that could change. Bitwise's ETF is set to track companies with over 1,000 BTC, and I can't help but wonder how many more companies in crypto will emerge by then. I mean, we already have a few companies paying in crypto, but will it be enough to make a dent?

Hunter Horsley, CEO of Bitwise, is saying 2025 will be a big year for this. He said on social media, "It feels like 2025 will be a big year for new corporates adopting the Bitcoin Standard." They have a draft for an ETF that tracks companies with Bitcoin reserves.

A Bit of a Gamble

But here’s the kicker: Only 22 companies in crypto currently hold 1,000 or more Bitcoin. MicroStrategy, led by Michael Saylor, is the king here with over 444,000 Bitcoin in its treasury. But then you have Tesla, which bought a ton of Bitcoin in 2021, but that didn’t spark the corporate interest everyone thought it would. Microsoft even rejected proposals to explore Bitcoin investments. There’s no denying that most finance leaders are wary of crypto for business purposes.

MicroStrategy’s bold move to adopt Bitcoin as a treasury asset has certainly made waves. It’s one of the few companies in crypto that has seen success, and the stock price has reflected that, up over 2,200% since adopting Bitcoin.

But here’s the thing: CFOs are very careful about crypto money management. They don't want to risk their company’s capital, especially with Bitcoin's volatility. Sure, there are resources that state Bitcoin's volatility is declining, but really? That’s a lot of faith to put in a currency.

Regulatory Challenges

And don’t even get me started on regulations. The current regulatory landscape is confusing, to say the least. Companies must navigate the complicated rules to avoid any nasty surprises.

Despite all of this, there is still a potential upside. Bitcoin could hedge against inflation and be an alternative to traditional assets. Companies that do embrace crypto may find themselves with a competitive edge, but they’ll have to tread carefully.

In conclusion, while 2025 may see more companies accepting crypto payments, we still have a long way to go. The world of corporate crypto is still a bit of a gamble, but who knows? It may just pay off in the long run.