5% CFOs plan Bitcoin purchase in 2021

According to a small survey of financial executives, 5% of organizations invest in Bitcoin as a corporate asset in 2021. Among them, 11% state that they might do the same by 2024.

A Survey Confirms CFO’s Investment Plans in Bitcoin

According to survey reports, Tesla invested 8% or 1.5 billion dollars of its cash reserve into Bitcoin. Various other organizations have also invested huge sums into the token as per reports, thereby intending to leverage the proceeds to acquire additional Bitcoins. 

Among the 77 respondents, 50 CFOs are included among other executives that highly showed different views according to the industry the organization works in. The sector of technology revealed the most attraction towards cryptocurrency with 50% of respondents from the technology industry expecting to hold Bitcoin in the future, thereby leaving no difference according to the organization’s size.

However, 84% of those surveyed stated that their primary concern regarding Bitcoin investment encircles around the financial uncertainty that comes from the high volatility of Bitcoin. 

Also Read: Why Should the US Government Concentrate on Blockchain, Crypto and ‘Digital Dollar’?

It additionally appears that people are adopting a wait-and-see approach while the landscape of cryptocurrency develops. More than 70% of the respondents stated that they are looking forward to understanding what others are involved in with Bitcoin. The same number looks forward to hearing more from regulators on the matter. To get help in understanding of the inherent and potential risks of holding digital assets. 

New Corporate Investment Plans to Impact Bitcoins

Financial leaders who happen to be tasked with ensuring financial stability do not remain prone to make particular leaps into unknown territory. According to them, this happens to be a nascent phenomenon in the long timeline of corporate assets. Board risk aversion, lack of understanding, slow adoption, complex accounting treatment, and cyber risks are some other concerns. 

Also Read: PayBitoPro Experiences Record Sign-ups After Bitcoin’s Value Surpasses $40,000

While it happens to be quite challenging to statistically draw significant results from quite a small sample size. However, it is worth noticing how enhanced corporate investment is likely to impact Bitcoin. Organizations outside of the utility and financial sectors approximately held $2T in cash reserves.

Presently, this happens to be more than double Bitcoins’ present market cap. As such, that happens to be lots of money accessible to flow into Bitcoin. As far as the technology sector is concerned, it alone could have at least $640B to invest in Bitcoin. Although most organizations have allocated simply a small percentage to Bitcoin so far. 

In Conclusion

Earlier this month, if all S&P 500 companies allocated one percent of their cash to Bitcoin, the price of Bitcoin would increase up to 90,000 dollars. Moreover, if the corporate investments increased to 10% of cash reserves as per experts. Thereafter, Bitcoin is likely to increase by 400,000 dollars. Therefore, this represents an increase in awareness in which only 66% of CIOs are aware of blockchain technology.