Analyst Nicholas Merten Says Corporations Will Enter Crypto Markets Soon
“Corporate treasurers… could be the catalyst that carries us out of this recent correction that we’ve had in December and January. I do believe we are going to see it faster than we may expect.”
Corporate Treasures are Picky About Their Investments
When it comes to entry points, corporate treasurers are pickier than regular investors, according to Merten. According to the analyst, with crypto markets trading at a significant discount to all-time highs, huge corporate players may be trying to diversify into the young space. He said:
“Corporate treasurers are not going to buy at new all-time highs. They buy when assets are at discounts. They rotate assets in their balance sheet, whether it’s up, you know, just basically cash, buying it on a discount, or maybe, for example, their equity plays have been doing really well, and now, they’re going to lock in some of those gains and rotate to fixed income assets like bonds or treasuries. Or into a new asset class, like cryptocurrencies. That’s how a corporate treasurer thinks. They do not buy at peaks in price, they buy at discounts when no one else is willing to buy because they know that it’s just like shopping – it’s going out and finding things that you like at a discount.”
According to the expert, KPMG Canada's recent addition of Bitcoin and Ethereum to their balance sheet is quite significant. According to Merten, the Big 4 accounting firm's choice could create a precedent for other corporate behemoths to follow suit. He also stated:
“That is a major move for crypto assets… To have a traditional company like KPMG now starting to showcase that they believe that Bitcoin and Ethereum are tokens worth putting on their balance sheet…..”
The company's decision to buy crypto in Canada could be because the country's legislative structure is more favorable to the asset class and related goods than the United States. KPMG has recently expanded its operations to embrace new technologies and financial services. It already has a division that deals with crypto assets and blockchain technology. Its US office is in charge of auditing MicroStrategy Incorporated (MSTR), a software company with the largest cryptocurrency holdings among publicly traded businesses.