Bitcoin's march onto corporate balance sheets could be hampered by the crypto's legendary volatility, according to a survey by Gartner released Tuesday that found only 5% of business executives intended to invest in bitcoin as a corporate asset this year.
- Eighty-four percent of polled executives (representing 77 firms) told Gartner in February they were spooked by "financial risk due to volatility of bitcoin" when considering whether to invest in the crypto.
- Bitcoin adoption could prove more fruitful in the long term – but not by much. By 2024 or later, 16% of polled executives said they expect their corporations to be investing in the crypto. Just 5% said the same for this year.
- Gartner found no difference between large and small organizations, however 50% of respondents from the tech sector could not rule out eventual crypto investments.
- The results are in line with a note Monday by Wedbush analysts, who found that while volatile nature around bitcoin would deter most public companies from investing in the next 12 to 18months, that could move “markedly higher” as more regulation and greater acceptance kick in down the road.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.