Custodia Bank’s Caitlin Long on how companies are embracing crypto

As Bitcoin continues to establish itself as a digital asset with diverse applications, a critical question arises: Will more companies start holding Bitcoin on their balance sheets?

There are a few pioneers who have taken a step forward by holding crypto in their corporate treasuries. And then there is MicroStrategy, led by Bitcoin maximalist Michael Saylor, which continues to raise billions of dollars to rally Bitcoin.

Roundtable host Rob Nelson recently spoke on this topic with Caitlin Long, Founder and CEO of Custodia Bank. Their conversation sheds light on the corporate treasurer mindset, regulatory challenges, and bitcoin’s future as a mainstream financial asset.

Nelson opened the discussion by questioning whether more companies will start holding bitcoin on their balance sheets, which could lead to wider adoption. Drawing on her background as a managing director at Morgan Stanley, Caitlin Long highlighted the cautious mindset of corporate treasurers. “They’re hyper-focused on credit ratings and cash flow coverage multiples,” she noted. While stablecoins may be treated like corporate cash, bitcoin won’t be considered the same by rating agencies and credit analysts, Long said.

Long shared that some Fortune 10 companies have been secretly using bitcoin for a decade, demonstrating the quiet but persistent integration of cryptocurrency in large companies. He recounted his experience introducing bitcoin to a Fortune 5 company in 2014, a move that signaled the beginning of corporate adoption.

The conversation then shifted to the advisory side of bitcoin. Nelson noted that despite the conservative stance of institutions like Morgan Stanley, private investment advisors are increasingly involved in crypto discussions. Long emphasized his pioneering role at Morgan Stanley, having been the first person to present on bitcoin within the firm in 2014, highlighting the initial resistance and eventual gradual adoption.

Nelson sought Long’s perspective on Bitcoin’s future value, drawing parallels between Bitcoin and traditional financial instruments. Long explained that Bitcoin’s scarcity and technological nature make it unique, and that he predicts it will continue to gain value despite periodic declines. He likened Bitcoin’s post-halving behavior to the effects of decimalization in stock trading, where reduced margins lead to increased trading volumes.

Looking ahead, Long commented on pricing models he has seen that predict bitcoin’s price could reach between $80,000 and $100,000 by the end of the year, with a potential peak of around $150,000 for the cycle. While he refrained from making any definitive price predictions, Long remains optimistic and says he is firmly in the “laser-eyed” camp until bitcoin reaches $100,000.