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

Author: D-Tiger Research Institute

Reprint: Lawrence, Mars Finance

Summary of Key Points

· The trend of corporate investment in Bitcoin is expanding: since the approval of the Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC), corporate investment strategies have gradually warmed up. This trend is not limited to Western markets and is extending to Asian regions.

· 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 in the Asian Market: Investment by Asian enterprises in Bitcoin is still in its infancy, but successful cases such as Metaplanet indicate that there is significant 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 Bitcoin spot ETFs. This move became a milestone in the institutionalization of crypto assets. Since then, more and more businesses have begun to incorporate Bitcoin into their investment strategies. MicroStrategy, for example, has identified Bitcoin as one of its most important financial assets. This trend is rapidly expanding from the Western market to the Asian market and is gradually becoming a global phenomenon. This article will analyze the main strategies driving the adoption of Bitcoin by businesses and the influencing factors behind them.

2. The craze for enterprises investing in Bitcoin

As the value of Bitcoin is gradually being recognized, its appeal is also increasing. At the national level, some governments have begun discussing investing in Bitcoin. For example, El Salvador has taken proactive measures by continuously purchasing Bitcoin. In the United States, discussions about elected President Trump's plan to reserve Bitcoin have become a focal point. Additionally, Poland and Suriname are also exploring the possibility of using Bitcoin as a strategic asset.

However, apart from El Salvador, most countries' investments in Bitcoin remain at the stage of policy discussions or campaign promises, and it will take some time before actual implementation. The United States has not yet made a direct investment 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.

Government actions on Bitcoin have been 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 stance taken by most governments.

3. Three Main Reasons for Enterprises to Pay Attention to Bitcoin

Investing in Bitcoin is no longer just a trend; it is gradually becoming a core financial strategy for businesses. Bitcoin has garnered attention from 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 relatively low and often struggle to outpace inflation, which can lead to a decrease in the real value of assets.

Source: Michael Saylor X

As an emerging alternative asset, Bitcoin can effectively address these shortcomings. It not only has high return potential but also diversifies investment risks, providing businesses with a 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 that of high-risk, high-return junk bonds. This indicates that Bitcoin is not just an alternative option, but also an important tool for corporate financial strategy.

3.2. Improve Asset Management Efficiency

Another important reason why Bitcoin attracts businesses is its efficient asset management characteristics. Bitcoin supports 24/7 trading, which provides businesses with great flexibility to adjust their asset allocations at any time. Furthermore, compared to traditional financial institutions, the process of liquidating Bitcoin is more convenient, free from the constraints of bank operating hours or cumbersome procedures.

Source: Kaiko

Although companies are still concerned about the potential impact on prices when monetizing Bitcoin, this issue is gradually easing as market depth increases. According to Kaiko data, Bitcoin's "2% market depth" (the total amount of buy and sell orders within a 2% range above and below the current market price) has steadily grown over the past year, with an average daily market depth reaching approximately $4 million. This indicates that the liquidity and stability of the Bitcoin market are continuously improving, creating a more favorable environment for companies to use Bitcoin.

3.3. Enhance Enterprise Value

Holding Bitcoin is not only a financial choice, but it can also significantly enhance corporate value and stock prices. For example, both MicroStrategy and Metaplanet saw substantial increases in their stock prices after announcing their Bitcoin acquisitions. This strategy is not only an effective marketing tool in the digital asset industry, but it also provides companies with a way to seize growth opportunities in this field.

4. Asian companies' investments in Bitcoin are 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. In particular, 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 low at the moment. According to statistics, Asian companies hold less than 1% of the world's total bitcoin holdings, mainly due to regulatory restrictions in many countries. In South Korea, for example, businesses are unable to open accounts on crypto exchanges, while also facing many hurdles from investing in overseas Bitcoin ETFs or launching funds linked to cryptocurrency trading. As a result, it is almost impossible for these businesses 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 investing by establishing overseas subsidiaries to bypass regulatory restrictions. Meanwhile, countries like Japan have also made some progress in relaxing related policies. Leading investment cases, such as 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

Investing in Bitcoin is gradually becoming a popular financial strategy adopted by companies. However, its price volatility remains a significant challenge for businesses, 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, companies 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 confused in practical operations. Once these uncertainties are eliminated, Bitcoin may play a more important role in the diversification of corporate assets.