Bitcoin

<p><em>This report was written by Tiger Research, offering analysis of strategies and factors driving the increasing adoption of Bitcoin by companies.</em></p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/f78d345d81e94b929e2bbaa87ccafde8.jpeg" /></p><p><a href="https://reports.tiger-research.com/p/corp-bitcoin-adoption-kor" rel="noopener noreferrer nofollow">&#x1f1f0;&#x1f1f7; 한국어로 읽기 →</a></p><h2 id="header-0">TL;DR</h2><ul><li><strong>Corporate investment in Bitcoin is spreading</strong>: Corporate investment strategies are gaining momentum following the SEC&#39;s approval of Bitcoin spot ETF. This trend is now extending beyond Western markets to include Asian regions.</li></ul><p></p><ul><li><strong>Why are corporations investing in Bitcoin</strong>: Bitcoin presents an appealing option for diversifying financial assets, improving fund management efficiency, and enhancing corporate value.</li></ul><p></p><ul><li><strong>Asian participation and prospects: </strong>Asian companies are still in the early stages of Bitcoin investment. However, success stories like Metaplanet demonstrate the potential for market expansion. The lack of regulatory clarity and institutional infrastructure remains a significant challenge.</li></ul><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/d0a244e5bf094de6b7f9b4af4d02dde4.png" /></p><p>Dive deep into Asia&#39;s Web3 market with Tiger Research. Be among the 4,000&#43; pioneers who receive exclusive market insights. <a href="https://reports.tiger-research.com/p/corp-bitcoin-adoption-eng" rel="noopener noreferrer nofollow">[Subscribe]</a></p><h2 id="header-1"><strong>1. Introduction</strong></h2><p>Earlier this year, the U.S. SEC approved Bitcoin spot ETFs. This marked a major step in the institutionalization of crypto assets. Since then, more companies have included Bitcoin in their investment strategies. One example is MicroStrategy incorporating Bitcoin as a financial asset. This trend is gaining momentum. It is spreading from Western markets to Asia, becoming a global phenomenon. This report examines the strategies and factors driving the increasing adoption of Bitcoin by companies.</p><h2 id="header-2"><strong>2. Companies Are Actively Investing in Bitcoin</strong></h2><p>Interest in Bitcoin is growing as its value gains recognition. At the national level, countries are also discussing Bitcoin investment. For example, El Salvador is actively purchasing Bitcoin. In the U.S., discussions focus on President-elect Trump&#39;s plan to stockpile Bitcoin. <a href="https://cryptopotato.com/the-bitcoin-effect-polish-presidential-candidate-slawomir-mentzen-promises-strategic-btc-reserve/" rel="noopener noreferrer nofollow">Poland</a> and <a href="https://cointelegraph.com/news/suriname-bitcoin-crypto-parbhoe-corruption" rel="noopener noreferrer nofollow">Suriname</a> are also moving to make Bitcoin a strategic asset.</p><p>However, in most countries, Bitcoin investment remains a campaign promise. It will take time before these plans are implemented. The U.S. has not yet invested in Bitcoin but holds it to recover criminal proceeds. Additionally, central banks continue to favor gold over Bitcoin due to its volatility.</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/ed0ebd7dce814ef497ebfb6fac2e2241.png" /></p><p>Government action on Bitcoin has been slow and limited. In contrast, corporate participation is gaining momentum. Companies like MicroStrategy, Semler Scientific, and Tesla have made bold investments in Bitcoin. This contrasts with the more cautious approach taken by most governments.</p><h2 id="header-3"><strong>3. Three reasons why corporations are looking at Bitcoin</strong></h2><p>Investing in Bitcoin is no longer just a trend; it is emerging as a core financial strategy for companies. Bitcoin&#39;s appeal lies in its unique characteristics, with its value highlighted in three key ways:</p><h3 id="strong-3-1-diversifying-financial-assets-strong"><strong>3.1. Diversifying Financial Assets</strong></h3><p>Companies have traditionally structured their financial assets around stable options, such as cash and government bonds. These assets ensure liquidity and help manage risk. However, they offer low yields that may not keep pace with inflation. As a result, companies may face a real loss of value.</p><p>Source: Michael Saylor X<img src="https://academy-public.coinmarketcap.com/optimized-uploads/67ff233c51244e48a9a3cf5d4a32dc1b.jpeg" /></p><p>Bitcoin has become a compelling alternative to traditional assets, offering high return potential and portfolio diversification. Over the past five years, it has outperformed major traditional assets, including the S&amp;P 500, gold, and bonds—even surpassing high-risk, high-return assets like junk bonds. This performance underscores Bitcoin&#39;s role not just as an alternative asset but as a valuable component of corporate treasury strategies.</p><h3 id="strong-3-2-efficiency-of-financial-assets-strong"><strong>3.2. Efficiency of Financial Assets</strong></h3><p>Another reason businesses are attracted to Bitcoin is its efficiency as a financial asset. Bitcoin trades 24/7, offering businesses flexibility in managing their financial assets. It also allows businesses to liquidate assets quickly, without the limited hours and complicated procedures of traditional financial institutions.</p><p>Source: Kaiko<img src="https://academy-public.coinmarketcap.com/optimized-uploads/0cccc83f82f04d9ca3c0dcd83c8390c0.jpeg" /></p><p>Concerns about the price impact when cashing out Bitcoin remain. However, recent increases in Bitcoin&#39;s market depth have addressed these concerns. According to <a href="https://dataplus.kaiko.com/asset/liquidity/16?metric&#61;btc&amp;viewType&#61;1&amp;zoom&#61;3M&amp;utm_campaign&#61;Research%20newsletter&amp;utm_source&#61;hs_email&amp;utm_medium&#61;email&amp;_hsenc&#61;p2ANqtz--MFHl6wZOrhi7-vEB1uJ-5RY_igrxjvQBV0aBsFNSjosvK7OhbscWR8j3KozJPvebvC0cD" rel="noopener noreferrer nofollow">Kaiko</a>, Bitcoin&#39;s 2% market depth (the combined value of buy and sell orders within ±2% of the market price) has steadily increased. Over the past year, the average daily market depth reached around $4 million. This improvement in market liquidity shows that the environment for businesses operating with Bitcoin is now more stable.</p><h3 id="strong-3-3-corporate-value-increase-strong"><strong>3.3. Corporate Value Increase</strong></h3><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/2667f4b109bb49b1965cb5d0f23ad468.jpeg" /></p><p>Holding Bitcoin is not just a financial decision. It can also enhance corporate value and stock prices. For example, MicroStrategy and Metaplanet announced Bitcoin purchases, which led to significant increases in their stock prices. This strategy acts as both a marketing tool within the digital asset industry and a way to capitalize on the sector&#39;s growth.</p><h2 id="header-4"><strong>4. Asian Companies Increasingly Investing in Bitcoin</strong></h2><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/9a80def628fd4540b8cc6c57a0995de9.jpeg" /></p><p>Asian companies are in the early stages of Bitcoin investment but are gradually increasing their holdings. Companies like Meitu in China, Metaplanet in Japan, and Brooker Group in Thailand have adopted Bitcoin as a strategic financial asset. Nexon has also made significant Bitcoin purchases. Metaplanet has been especially active, acquiring 1,142 bitcoins over the past six months.</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/2aa458600b374fde82328824480b8fee.jpeg" /></p><p>However, corporate participation in Asia remains limited. Asian companies hold less than 1% of global Bitcoin supply, mainly due to regulatory constraints in several countries. In South Korea, corporate entities cannot open accounts on cryptocurrency exchanges and face challenges in investing in overseas Bitcoin ETFs or launching crypto exchange-related funds. Formal investment in Bitcoin is nearly impossible for these companies.</p><p>Despite these regulatory challenges, the potential for increased participation from Asian firms is growing. Some companies are bypassing regulations by investing through overseas subsidiaries. Deregulation efforts are gaining traction, particularly in Japan. Leading investments by firms like Metaplanet are sparking interest and setting a precedent. These developments may pave the way for broader corporate participation in the future.</p><h2 id="header-5"><strong>5. Closing Thoughts</strong></h2><p>Bitcoin investment is becoming a popular financial strategy for companies. However, Bitcoin&#39;s volatility remains a concern, especially due to external factors like international politics. The market crash in 2022 highlighted the risks for companies holding Bitcoin. Businesses should adopt a cautious approach by balancing Bitcoin with safer assets.</p><p>Additionally, a clear institutional framework is essential for Bitcoin&#39;s growth in corporate portfolios. The lack of clear guidelines on holding and accounting for crypto assets causes confusion. Once these uncertainties are resolved, Bitcoin could play a larger role in corporate portfolio diversification.</p><p>Dive deep into Asia&#39;s Web3 market with Tiger Research. Be among the 4,000&#43; pioneers who receive exclusive market insights. <a href="https://reports.tiger-research.com/p/corp-bitcoin-adoption-eng" rel="noopener noreferrer nofollow">[Subscribe]</a></p><h2 id="header-6">&#x1f42f; More from Tiger Research</h2><p>Read more reports related to this research.</p><ul><li><a href="https://reports.tiger-research.com/p/asia-public-fund-eng" rel="noopener noreferrer nofollow">Outlook of Institutional Fund Inflows in Asia’s Crypto Markets</a></li><li><a href="https://reports.tiger-research.com/p/crypto-vs-stock-eng" rel="noopener noreferrer nofollow">Is crypto catching up to Tradfi?</a></li></ul><h2 id="header-7">Disclaimer</h2><p>This report has been prepared based on materials believed to be reliable. However, we do not expressly or impliedly warrant the accuracy, completeness, and suitability of the information. We disclaim any liability for any losses arising from the use of this report or its contents. The conclusions and recommendations in this report are based on information available at the time of preparation and are subject to change without notice. All projects, estimates, forecasts, objectives, opinions, and views expressed in this report are subject to change without notice and may differ from or be contrary to the opinions of others or other organizations.</p><p>This document is for informational purposes only and should not be considered legal, business, investment, or tax advice. Any references to securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or an offer to provide investment advisory services. This material is not directed at investors or potential investors.</p><h2 id="header-8">Terms of Usage</h2><p>Tiger Research allows the fair use of its reports. ‘Fair use’ is a principle that broadly permits the use of specific content for public interest purposes, as long as it doesn&#39;t harm the commercial value of the material. If the use aligns with the purpose of fair use, the reports can be utilized without prior permission. However, when citing Tiger Research&#39;s reports, it is mandatory to 1) clearly state &#39;Tiger Research&#39; as the source, 2) include the Tiger Research logo(Black/White). If the material is to be restructured and published, separate negotiations are required. Unauthorized use of the reports may result in legal action.</p>

The Bitcoin Adoption Race Among Corporation

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