December 11, 2023


The business lovers

What the C-Suite Is Saying About Bitcoin

What is your considering on Bitcoin and cryptocurrencies? Quite a few “experts” claim to know what CFOs and CEOs think about the improvement of electronic belongings, the use of Bitcoin on balance sheets, and the business enterprise possibilities crypto provides. But rarely do they analyze the public statements by associates of the C-suite.

To gauge the prevailing sentiments about Bitcoin, we combed by means of the earnings calls of some outstanding businesses, courtesy of S&P Money IQ. The statements from 10 CFOs and CEOs that observe clearly show a wide disparity in views and techniques all around Bitcoin and other cryptocurrencies. Most of these statements were prompted by inquiries from investigate analysts.

Alexander Edward Timm, CEO Root Coverage

We think that there absolutely could be difficulties to accepting Bitcoin, but we don’t see that as a solid consumer demand proper now. We just do whatsoever our individuals are inquiring for and make certain that we’re focused on payment overall flexibility and payment choices. And while it may be a fun item to speak about, we just don’t see genuine individuals wanting to transact with Bitcoin at this place.

Arno Antlitz, Team CFO, Volkswagen

We at the moment have no strategies to use cryptocurrencies or devote in cryptocurrencies.

Douglas A. Cifu, CEO Virtu Monetary

I’m not a Bitcoin dude. … The option, even so, for us as a market maker is if this is seen as a retailer of value, men and women are heading to want to accessibility it as an [exchange-traded fund], as a spot situation, and as a long term. … So the interesting thing from us is that you have this entirely new addressable market with presumably trillions of bucks of value that needs to be market-designed and needs to have selling price discovery on it. We can do that with out increasing our risk at all, proper, and with out any genuine financial commitment other than the mixed know-how plant we have and the staff we have today. That is what we’re quite energized about.

Zack Kirkhorn, CFO, Tesla

Zachary J. Kirkhorn, CFO, Tesla

Elon [Musk] and I were searching for a put to retailer income that was not getting instantly employed, trying to get some degree of return on this but also preserve liquidity. Especially as we glance ahead to the launch of Austin and Berlin [production plants] and the uncertainty that is happening with semiconductors and port capacity, getting capable to accessibility our income quite promptly is super-crucial to us proper now. And there are not lots of standard possibilities to do this, or at least that we uncovered and in talking to many others that we could get superior comments on, particularly with yields getting so reduced and with out getting on extra risk or sacrificing liquidity. And Bitcoin seemed at the time and so far has established to be a superior selection. A superior put to put some of our income that is not instantly getting employed for day by day operations or possibly not wanted until the end of the 12 months and be capable to get some return on that. …. from a company treasury point of view, we have been really pleased with how a great deal liquidity there is in the bitcoin market. … So. we intend to keep what we have lengthy time period and go on to accumulate bitcoin from transactions from our consumers as they purchase cars.

Jennifer M. Johnson, President and CEO, Franklin Means

I’m not a big fan of issues like Bitcoin since I think crypto bought so large about time that governments would want to move in and control since they like to regulate their forex. … That is not to be bewildered with tokenization of belongings since I think that will unlock illiquid belongings that come to be attention-grabbing and also tokenize cash that enable aid business enterprise types. And that is diverse. Nothing is backing a Bitcoin, but there is anything backing a coin that essentially has a practical capability.

I think there’s a whole lot of education that is type of occur out there all around tokenization. I think that blockchain will wholly modify how our field, how the monetary expert services field, operates its back office. I think it has, as I reported, the genuine capability of democratizing illiquid belongings that some would argue may even take some of the quality out of [the] alternative place about a lengthy time.

Adena Friedman, CEO, Nasdaq

Adena T. Friedman, President and CEO, Nasdaq

Our preliminary involvement in crypto has been with our know-how, and that is been wonderful. We are associates with various crypto marketplaces on their surveillance and their know-how. And one of the large considerations with crypto has been all around earning certain that the marketplaces are fair for all contributors. And so our know-how is remarkably appropriate there. Managing investing and, frankly, the scalability of investing that they’ve had to offer with, our methods are built for scale. So, I think that also truly provides us some genuine gain.

We do have some interesting strategies to participate in the crypto place, but we’re continue to analyzing our lengthy-time period position. And how will the marketplaces evolve?

Daniel H. Schulman, President and CEO, Paypal

So, we have a large volume of truly wonderful outcomes heading on tactically with our cryptocurrency endeavours. And we’re energized about people. We’re investing in people. But this total notion all around setting up a electronic forex and blockchain business enterprise device within PayPal is to think about what is the monetary system heading to start off to go towards? And how can we be a shaper of that, a leader inside that and not a reactor to how that is happening. And people discussions have gone nicely further than my anticipations in conditions of the openness of governments and central financial institutions to think about new strategies of running and shifting funds by means of the system.

Kevin Lewis Thompson, CFO, To start with Basis

As anyone who holds Bitcoin, there’s an uncomfortable interaction involving standard banking and these Bitcoin suppliers inside the financial system, and it’s finding superior about time. But I think a whole lot of men and women truly want to function with their standard bank that they have a whole lot of trust with and operate in that standard banking atmosphere and have a great deal far more quick accessibility to these varieties of investments to go involving fiat and Bitcoin, both of those inside the banking side of the world as nicely as in the wealth administration side of the world.

Goldman Sachs CEO David Solomon

David Michael Solomon, CEO, Goldman Sachs

The digitization of currencies is a escalating craze, provided the prospect for less friction and the movement of funds, and a selection of other use situations. The increasing thing to consider by central financial institutions about electronic currencies and blockchain know-how that can complement current monetary frameworks is also noteworthy. There is also a major concentration on cryptocurrencies like Bitcoin, the place the trajectory is less crystal clear as market contributors appraise their chance as a retailer of value.

As I’ve reported, we require to operate inside legal and regulatory parameters. For case in point, we are unable to very own or trade Bitcoin as a theory as we do not have the permissions or licenses vital to do so. This is a swiftly evolving and intricate place, both of those usually and from a regulatory assemble. World regulators are quite engaged on these concerns. Nevertheless, as with any other worldwide monetary establishment, we go on to investigate the electronic asset place all around locations of fascination to our purchasers. For case in point, we are searching into offering electronic belongings info to our purchasers by means of one of our know-how platforms.

Alfred Francis Kelly, Chair and CEO, Visa

There are two market segments as we see it. One is Bitcoin, mainly belongings held by men and women. They’re not employed a great deal in the kind of payments. We type of think of them as electronic gold. And then, there are electronic currencies, like central bank electronic currencies and stable cash that are directly backed by current fiat currencies. And they are unquestionably rising as a payment selection, and they are jogging a public blockchain, which is, in essence, an extra community, a great deal like a [genuine-time payment] or ACH may be.

Michael Saylor, CEO, MicroStrategy

The enhanced visibility and thought management from our Bitcoin acquisition system is driving an improve in inbound software program potential customers. … Going ahead, we’ll purchase extra Bitcoin when our income, income equivalents, and limited-time period investments exceed recent functioning cash needs. And we could, from time to time, issue to market ailments, situation credit card debt or fairness securities and cash-increasing transactions with the goal of employing the proceeds to purchase bitcoin. We do not approach to have interaction in common investing in Bitcoin and have not hedged or usually entered into derivative contracts with respect to our Bitcoin holdings. …. We’ve founded a balance sheet of around $5 billion of belongings, mainly Bitcoin belongings, that provides us exposure and give us a wonderful way to guard our shareholders from monetary inflation and, in truth, advantage from monetary inflation.

As we go ahead and we think about Bitcoin acquisition as we produce income flows from the core business enterprise, in extra of our functioning cash needs, we will transform that into Bitcoin. And, of study course, that is a uncomplicated accretive transaction for us since we anticipate Bitcoin to value at a far far more speedy charge than the yield we could get on the U.S. greenback. … We even anticipate Bitcoin to value at a charge a lot quicker than the probable natural and organic advancement charge of our enterprise software program business enterprise.

bitcoin, C-suite, CEOs, CFOs, Goldman Sachs, Microstrategy, Tesla