This column was co-written by Frank Chaparro, director of special projects at The Block, and Laura Vidiella of MNNC Group. The views expressed in this column are their own and do not reflect the opinions of their employers.

The idea of companies holding bitcoin on their balance sheets is gaining renewed traction. Many will recall the heady days of 2021 when firms like MicroStrategy popularized corporate bitcoin holdings, effectively transforming themselves into speculative bitcoin plays. Jack Dorsey’s Block and, for a time, Tesla followed suit. Crypto lenders like Genesis even launched “treasury” businesses to attract CFOs looking to park reserves in bitcoin.

Despite the appeal, regulatory headwinds have long complicated corporate adoption. Back then, U.S. tax treatment required firms to mark down bitcoin losses but prevented them from marking up gains—a tough sell for conservative financial officers. This was adjusted ultimately. Still, a new administration could soften these types of hurdles, reducing headline risks and making corporate bitcoin holdings more palatable.

Corporate Activity Heats Up

Marathon Digital (MARA): Purchased ~12,000 BTC worth $1.1 billion, raising its total holdings to ~40,000 BTC.
MicroStrategy: Added 21,000 BTC last week, doubling down on its bitcoin-centric strategy.
Riot Platforms: Upsized its convertible note offering to $525 million, signaling continued crypto expansion.
Microsoft: Shareholders rejected a proposal to hold BTC reserves, as expected.

As for price, bitcoin rebounded following Monday’s $1.6 billion liquidation event. Maybe we can thank our friends above.

Coinbase's Bullish Outlook

Equity analysts at Needham & Company raised their price target for Coinbase shares from $375 to $420, citing record-high December trading volumes and resurgent retail interest in altcoins. Elevated volatility—especially with bitcoin trading around $100,000—has been a key driver.

“Total Q4 2024 volume is expected to reach $435 billion, generating $2.1 billion in revenue with EPS at $2.37 per share,” the analysts noted. They forecast 2025 revenue at $8.9 billion with EPS of $9.61.

Despite this optimism, Coinbase shares traded at $316.01, down 8% on the day. Still, the stock has surged over 80% year-to-date, fueled in part by bitcoin’s rally following Donald Trump’s election victory in November. Investors continue to see Coinbase as a proxy for betting on the broader crypto market.

As crypto's next chapter unfolds, corporate interest in bitcoin may be poised for a revival—especially if regulatory clarity improves.

The Block’s Frank Chaparro serves up the latest headlines, charts, trends, and views on crypto and DeFi from around The Block, Twitter, and The Scoop pod. Subscribe to The Scoop newsletter, which hits inboxes on Tuesday and Friday mornings.

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Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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