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Most corporate CFOs not planning to buy Bitcoin: survey

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A recent Gartner survey shows finance executives do not plan to hold Bitcoin as a corporate asset. Yahoo Finance’s Brian Sozzi breaks down the details.

Video Transcript

[MUSIC PLAYING]

JULIE HYMAN: Well, MicroStrategy may have been the pioneer here in terms of putting bitcoin on its balance sheet. It's just now selling debt in order to be able to buy more bitcoin. But most corporate executives are not going to follow suit, according to a new Gartner survey.

Brian, we brought this up with Meltem at the top of the show. And she said, well, I think they're going to change their tune. But we'll-- I guess time will tell.

BRIAN SOZZI: Yeah, Julie. I have to give you a shout out because you actually put this in our Slack channel, definitely caught my attention after you did. So this is an interesting new Gartner's survey out. And it said that 84% of the executives surveyed for this survey, which is 77 executives in total, 50 CFOs in particular, 84%, they did not plan to hold bitcoin as a corporate asset. Very interesting.

And they list a couple reasons why. First up, volatility. Obviously, despite the fact that bitcoin seemingly now goes up every single day, it's still a volatile, very volatile asset. Next up, board risk aversion. That's another reason why executives say they're still not keen on trading their cash for bitcoin as Elon Musk appears to be all in on.

Next up, slow adoption, regulatory concerns. And last but not least, this is not any different between small and large companies. This seems to be at least a universal thinking, at least according to this Gartner survey. And Myles, really unsurprising here. I mean, people have been holding cash on their balance sheets for years. It's going to be tough for them to get-- really, I think, go to bitcoin.

MYLES UDLAND: Yeah, I mean, we talk a lot about fiduciary duty. And I know that-- I know that the bitcoin bulls, the crypto adherents, want to frame it as its fiduciarily irresponsible to not be invested in bitcoin. But I mean, let's talk about the world as it is. Corporate America is run mostly by lawyers, mostly who are not-- you know, almost exclusively who are risk averse.

And it's going to be very hard for a corporate board and a corporate leadership team to endorse the placement of an asset on the balance sheet, a replacement for cash of some asset that will be used as a cash-like instrument. But that is not quite as liquid as cash, and which has massive amounts of volatility. Obviously, if bitcoin prices double or triple, then your company-- you know, look at MicroStrategy.

Michael Saylor's a genius now because he's put basically his entire company's holdings into bitcoin, as Julie mentioned earlier in our Slack channel. It's now a bitcoin ETF. But the world of corporate America that exists right now is, again, one that's mostly run by lawyers. And I think we all know kind of how those decisions are going to end up netting out.

BRIAN SOZZI: And Myles, one executive not endorsing it is AutoNation CEO Mike Jackson. Elon Musk seems to be all in.

MYLES UDLAND: I can't believe-- I can't believe you asked this question, that's why it was hilarious.

BRIAN SOZZI: Well, we had to ask him. Here what Mike Jackson told us on the show yesterday about accepting bitcoin for cars.

MIKE JACKSON: Listen, I am absolutely astounded and amazed what bitcoin is worth today. And I don't know where it's going and what it all means. So I can't help you there other than to say, look what I do. I don't anticipate us accepting bitcoin. And we really haven't had hardly any customers suggest that we accept bitcoin. So we're good with the US currency.

BRIAN SOZZI: And Myles, really no surprise, I guess, to see a former member, a former advisory member of the Federal Reserve Board of Atlanta sticking with cash.

JULIE HYMAN: I liked his--

MYLES UDLAND: I just love--

JULIE HYMAN: -we're good, we're good. We're OK. I mean, the thing that's amazing to me about this conversation as I continue to think about it, corporate treasurers don't even hold stocks, right? They don't invest in stocks. They buy back their own stocks. But it's not like they have a broad portfolio of assets, right?

They usually own some real estate. They've got treasuries in cash, or short-term treasuries in cash, even, not even longer term treasuries. And that's it. So like, bitcoin is not just, like, incremental change. That would be a leap for most companies out there.