A small scale study associated with financial executives has discovered that 5% of companies intend to invest in Bitcoin ( BTC ) as a corporate asset this year, with a further 11% saying they could do so by 2024.
The survey conducted by Gartner comes on the back of news that Tesla spent 8% , or $1. 5 billion of its money reserve, into Bitcoin. MicroStrategy Inc. who has also spent large sums into the expression announced a $600 million convertible bond offering Tuesday with the intent of utilizing the proceeds to acquire additional Bitcoins.
The seventy seven respondents, including 50 CFOs among other executives, demonstrated highly differing views in line with the industry the company works in. The technology sector showed the most attraction towards Bitcoin with 50% of respondents from this industry anticipating keeping the cryptocurrency in the future, without difference based on the organization’s dimension.
Although the most of those surveyed (84%) stated their main concerns regarding investing revolves around the financial risk that comes from Bitcoin’s higher volatility, it also appears most are adopting a wait and find out approach a the panorama develops.
Over 70% stated that one of the top things they want to understand is what others are doing with Bitcoin. Almost the same quantity want to hear more through regulators on the matter to aid in their understanding of the natural risks with holding the particular digital asset.
Gartner chief associated with research Alexander Bant noted that, “Finance leaders who are tasked with ensuring monetary stability are not prone to making speculative leaps into unfamiliar territory, ” adding
“It’s important to remember this is a nascent phenomenon in the long timeline of corporate assets. Finance leaders that are tasked with ensuring economic stability are not prone to producing speculative leaps into unknown territory. ”
Other concerns expressed incorporated board risk aversion (39%), slow adoption as an accepted form of payment or exchange (38%), lack of understanding (30%), cyber risks (25%), plus complex accounting treatment (18%).
While it’s difficult to draw statistically substantial results from such a small test size, it is worth noting how increased corporate investment would impact Bitcoin. Within the second half of 2020, companies outside of the financial and power sectors in the S& P Global held approximately $2 trillion in cash reserves. This is currently more than double Bitcoin’s current market cap, and as such, there is plenty of money offered to flow into Bitcoin.
The technology sector alone could have at least $640 billion to invest — although most companies so far have allocated only a small percentage in order to Bitcoin.
Investment firm ARK Invest suggested earlier this 30 days that if “all S& G 500 companies were to assign 1% of their cash” in order to BTC, the digital asset’s price would increase by roughly $40, 000 , driving the price to just shy of $90, 000.
Should the corporate purchases rise to 10% associated with cash reserves, ARK states Bitcoin will increase by $400, 000.
The study represents a stark raise of awareness from Gartner’s 2018 survey in which just 66% of CIOs also knew about blockchain technologies.