Global companies are buying Bitcoin in droves, but Asian enterprises hold less than 1% of the total.

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 traction. This trend is not limited to Western markets and is extending to the Asian region.

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

· Participation and Development Prospects of the Asian Market: Asian companies' investment in Bitcoin is still in its infancy, but successful cases like Metaplanet indicate that there is huge potential for market expansion. However, regulatory uncertainty and the 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 for 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 key 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 companies to adopt Bitcoin and the influencing factors behind them.

2. The craze for corporate investment in Bitcoin

As the value of Bitcoin gradually gains recognition, its appeal continues to grow. At the national level, some governments have also begun to discuss investing in Bitcoin. For example, El Salvador has taken proactive steps to continuously purchase Bitcoin. Meanwhile, in the United States, discussions about elected President Trump's plans to accumulate 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' investments in Bitcoin are still at the policy discussion or campaign promise stage, 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 volatility of Bitcoin prices, many central banks in various countries still prefer to choose gold as a more stable reserve asset.

The government's actions regarding Bitcoin are slow and limited, but corporate participation 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 approach taken by most governments.

3. Three Reasons Why Companies Are Interested in Bitcoin

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

3.1. Achieving Asset Diversification

Traditionally, a company's financial assets are typically allocated around stable options such as cash and government bonds. These assets can ensure liquidity and help mitigate risks, but their yields are low and often struggle to outperform inflation, which may lead to a decrease in the real value of assets.

Source: Michael Saylor X

Bitcoin, as an emerging alternative asset, can effectively make up for these shortcomings. Not only does it have the potential for high returns, but it also diversifies investment risk, providing businesses with new asset allocation options. Over the past five years, Bitcoin has significantly outperformed traditional assets such as the S&P 500, gold, and bonds, and even outperformed junk bonds, which are considered high-risk, high-return. This shows that Bitcoin is not only an alternative, but also an important tool for 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 companies with great flexibility to adjust their asset allocation at any time. In addition, compared to traditional financial institutions, the process of liquidating Bitcoin is more convenient, not limited by bank operating 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. Enhancing Corporate Value

Holding Bitcoin is not only a financial choice; it can also significantly enhance a company's value and stock price. For example, both MicroStrategy and Metaplanet saw substantial increases in their stock prices after announcing their acquisitions of Bitcoin. 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 field.

4. Investment by Asian companies in Bitcoin is increasing.

Although Asian companies are still in the early stages of Bitcoin investment, 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 large-scale 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 remains relatively low. According to statistics, the total amount of Bitcoin held by Asian companies accounts for less than 1% of the global total, mainly 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 many challenges in the regulatory environment, the potential for Asian companies to participate in the Bitcoin market remains promising. Some companies are investing by setting up overseas subsidiaries to circumvent regulatory restrictions. Meanwhile, countries like Japan have also made some progress in relaxing relevant policies. Leading investment cases like Metaplanet are attracting more market attention. These positive changes may pave the way for broader participation of Asian companies in the Bitcoin market in the future.

5. Conclusion

Bitcoin investing is gradually becoming a popular financial strategy for businesses. However, its price volatility remains an important challenge for companies, especially under the influence of external factors such as international politics. The market crash events of 2022 clearly exposed the potential risks of corporate Bitcoin holdings. Therefore, businesses should be cautious when investing in Bitcoin and 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 important role in corporate asset diversification.