Cryptocurrencies may have been treading the troubled waters but there is no stopping big shots from assessing the pros and cons of holding Bitcoin on their balance sheets. Microstrategy’s Jeremy Price, for one, believes that society can benefit from the adoption of the premier cryptocurrency. The largest independent publicly-traded business intelligence company, just held its annual conference – World 2022, on Enterprise Analytics and Bitcoin for Corporations wherein the panel weighed in on the various benefits of incorporating Bitcoin into corporate initiatives.
The panel of experts discussed holding Bitcoin and other cryptocurrencies on the balance sheet, including considerations on corporate governance, accounting, exchange and custody, and tax. The discussion ranged from implementing new Bitcoin strategies to addressing the tools and methodologies of crypto-related policies.
Details Of The Discussion
In the conference, Phong Le of MicroStrategy talked about the advantages of holding bitcoin on the balance sheet and how will this benefit the organization’s accounting, reporting, and board and investor relations. Multi-billion dollar companies have already started holding Bitcoin on their balance sheet including Tesla and digital payments company, Block Inc (formerly Square). He went on to add,
“There’s nothing wrong with a corporation putting its income statement and balance sheet to work to increase shareholder value. I believe the No. 1 use of excess cash is reinvesting it in the business in the best vehicles that are accretive to shareholders, employees, and customers.”
Jeremy Price reiterated his belief about how society can benefit from the adoption of Bitcoin. He said that even if an organization doesn’t use Bitcoin, every company should study it and how it could potentially improve their operations. Services built around the bitcoin ecosystem will be a key factor molding the future economy.
Delloite’s Amy Park said that crypto may provide access to new demographic groups. Users often represent a more cutting-edge clientele that values transparency in their transactions. Many online websites have an option to allow users to pay in cryptocurrencies. She remarked that up to 40% of customers who pay with crypto are the new customers of the company and their purchase amounts are twice those of credit card users. Crypto could enable access to new capital and liquidity pools through traditional investments that have been tokenized, as well as to new asset classes.
Crypto- Future Of Business
According to the experts, incorporating crypto into businesses will provide a new avenue for enhancing a host of more traditional treasury activities including enabling simple, real-time, and secure money transfers which could help strengthen control over the capital of the enterprise and manage the risks and opportunities of engaging in digital investments.
