Why Public Companies Are Secretly Hoarding Bitcoin—and What It Means for Your Portfolio Right Now
- The Price Is Going Up
Pretty simple: Bitcoin’s value has climbed from around $75,000 in April to a recent high of about $112,000. Listed companies hoping to benefit from rising asset prices clearly saw that growth and pounced in hopes of diversifying their own holdings and harnessing the yields.
- The SEC’s Stance Has Turned More Favorable
The previous chair of the Securities and Exchange Commission, Gary Gensler, took a skeptical view of cryptocurrency that became evident in the agency’s policymaking. A measure released by the agency in 2022, Staff Accounting Bulletin No. 121, required that companies holding digital assets on behalf of others classify them as liabilities for accounting purposes. While the guidance raised the cost of keeping crypto and the like on companies’ books, Gensler justified the move as a needed protection for investors in the event of bankruptcies.
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