Original title: “Large companies buying Bitcoin has become a trend, but the proportion of Asian enterprises holding coins is less than 1%”

Original source: Tiger Research Reports

Key Points Summary

· The trend of corporate investment in Bitcoin is expanding: Since the U.S. Securities and Exchange Commission (SEC) approved the Bitcoin spot ETF, corporate investment strategies have gradually gained momentum. This trend is not limited to Western markets and is extending to the Asian region.

· Why businesses choose Bitcoin: Bitcoin has shown great appeal in diversifying asset allocation, improving capital management efficiency, and enhancing corporate value.

· Participation and Development Prospects in the Asian Market: Investment in Bitcoin by Asian companies is still in its early stages, but successful cases like Metaplanet indicate that the market has huge expansion potential. However, regulatory uncertainty and lack of institutional support remain major obstacles.

1. Introduction

This year, the U.S. Securities and Exchange Commission (SEC) approved a Bitcoin spot ETF. This move has become a milestone event in the institutionalization of crypto assets. Since then, more and more companies have begun to incorporate Bitcoin into their investment strategies. For example, MicroStrategy has made Bitcoin one of its important financial assets. This trend is rapidly expanding from Western markets to Asian markets, gradually becoming a global phenomenon. This article will analyze the main strategies driving corporate adoption of Bitcoin and the underlying factors.

2. The craze for enterprises investing in Bitcoin

As the value of Bitcoin gradually gains recognition, its appeal continues to grow. At the national level, some governments have begun discussing investments in Bitcoin. For example, El Salvador has taken proactive steps to continuously purchase Bitcoin. In the United States, discussions about President-elect Trump’s plan to reserve Bitcoin have become a focal point. Additionally, Poland and Suriname are also exploring the possibility of adopting Bitcoin as a strategic asset.

However, apart from El Salvador, most countries’ investment in Bitcoin remains at the stage of policy discussions or campaign promises, and it will take some time before actual implementation. The United States has not yet directly invested in Bitcoin but holds some Bitcoin to recover criminal proceeds. Additionally, due to the significant price volatility of Bitcoin, many central banks in various countries still prefer to choose gold as a more stable reserve asset.

The government’s actions regarding Bitcoin have been slow and limited, but the participation of enterprises is showing an accelerating trend. Companies like MicroStrategy, Semler Scientific, and Tesla have made bold investments in the Bitcoin space. This stands in stark contrast to the cautious attitude taken by most governments.

3. Three Reasons Why Enterprises Pay Attention to Bitcoin

Investing in Bitcoin is no longer just a trend; it is gradually becoming a core financial strategy for businesses. Bitcoin is attracting attention from companies due to its unique characteristics, and its value is primarily reflected in the following three aspects:

3.1. Achieving Asset Diversification

Traditionally, the financial assets of businesses are usually allocated around stable options such as cash and government bonds. These assets can ensure liquidity and help avoid risks, but their yields are relatively low and often struggle to outpace inflation, which can lead to a shrinkage in the actual value of assets.

Source: Michael Saylor X

Bitcoin, as an emerging alternative asset, can effectively address these shortcomings. It not only has high return potential but also diversifies investment risks, providing enterprises with a brand new asset allocation option. Over the past five years, Bitcoin’s performance has significantly outperformed traditional assets such as the S&P 500 index, gold, and bonds, even exceeding what are considered high-risk, high-return junk bonds. This indicates that Bitcoin is not only an alternative option but also an important tool in corporate financial strategies.

3.2. Improve Asset Management Efficiency

Another important reason why Bitcoin attracts businesses is its efficient asset management features. Bitcoin supports 24/7 trading, which provides businesses with great flexibility to adjust their asset allocation at any time. Furthermore, compared to traditional financial institutions, the process of liquidating Bitcoin is more convenient, without being restricted by bank hours or cumbersome procedures.

Source: Kaiko

While businesses are still concerned about the possible impact on the price when monetizing Bitcoin, this is gradually easing as the market depth increases. According to Kaiko data, Bitcoin’s “2% market depth” (i.e., the total amount of buy and sell orders within 2% of the current market price) has grown steadily over the past year, reaching an average daily market depth of about $4 million. This shows that the liquidity and stability of the Bitcoin market is continuing to improve, creating a more favorable environment for businesses to use Bitcoin.

3.3. Enhance Enterprise Value

Holding Bitcoin is not just a financial choice; it can also significantly enhance a company’s value and stock price. For instance, both MicroStrategy and Metaplanet experienced substantial stock price increases after announcing their Bitcoin acquisitions. This strategy is not only an effective marketing tool in the digital asset industry but also provides companies with a way to seize growth opportunities in this sector.

4. Asian companies’ investment in Bitcoin is increasing

Although Asian companies are still in the early stages of investing in Bitcoin, they are gradually increasing their holdings. For example, China’s Meitu, Japan’s Metaplanet, and Thailand’s Brooker Group have regarded Bitcoin as a strategic financial asset. Nexon has also made significant Bitcoin purchases. Notably, Metaplanet has been particularly active, acquiring 1,142 Bitcoins in the past six months.

However, the participation of Asian companies in the Bitcoin market is still relatively low. According to statistics, the total amount of Bitcoin held by Asian companies accounts for less than 1% of the global total, primarily due to regulatory restrictions in many countries. For example, in South Korea, companies are unable to open accounts on cryptocurrency exchanges and face numerous obstacles in investing in overseas Bitcoin ETFs or launching funds related to cryptocurrency trading. Therefore, these companies are almost unable to invest in Bitcoin through formal channels.

Despite the numerous challenges in the regulatory environment, the participation potential of Asian companies in the Bitcoin market remains promising. Some companies are bypassing regulatory restrictions by setting up overseas subsidiaries for investment. At the same time, countries like Japan have also made some progress in easing relevant policies. Leading companies like Metaplanet are attracting more market attention with their investment cases. These positive changes may pave the way for broader participation of Asian companies in the Bitcoin market in the future.

5. Conclusion

Bitcoin investment is gradually becoming a popular financial strategy adopted by enterprises. However, its price volatility remains a significant challenge for companies, especially under the influence of external factors such as international politics. The market crash event in 2022 clearly exposed the potential risks of companies holding Bitcoin. Therefore, enterprises should exercise caution when investing in Bitcoin and reasonably pair it with safer assets to reduce overall risk.

In addition, for Bitcoin to further develop in corporate investment portfolios, a clear institutional framework needs to be established. Currently, there is a lack of clear guidance on the holding and accounting of crypto assets, which often leaves companies feeling confused in practice. Once these uncertainties are eliminated, Bitcoin may play a more significant role in corporate asset diversification.

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