News

Institutional adoption of Bitcoin may be just getting started, according to Jon Najarian, co-founder of Market Rebellion.

Speaking with TheStreet Roundtable host Rob Nelson and Crypto Lifers host Sam Price, Najarian explained how U.S. companies could soon begin holding Bitcoin as a treasury asset — especially as bond yields begin to decline.

“We are getting more and more companies, in some cases even S&P 500 companies, that are going to be using Bitcoin much the way Michael Saylor does,” Najarian said. “They’re not going to issue stock and use the proceeds… but what they will be doing is their treasuries that are going to be paying them less and less.”

Najarian believes this looming drop in returns from treasury holdings will push large companies to look elsewhere — and Bitcoin could benefit.

“If Sam and John are right, you’re going to be getting less and less for your deposited funds as the year goes on,” he said. “They’ll be, I believe, using Bitcoin as a treasury item on their balance sheet.”

When asked to estimate how much corporations like Apple or Microsoft might allocate, Najarian said there’s no disclosure yet — but the logic is clear: “Are you just going to leave [cash] in as the treasuries come due and you’re no longer getting 5%... all of a sudden it goes to 4.5%, then 4%, then 3.5%? You’re likely to be looking for something to diversify a little bit more.”

“The more of them that choose — whether it’s 1%, 5%, even as high as 10%... If they believe as I do that assets gather their value by their scarcity — my answer is yes. They’ll chase it higher and there’s just not enough of it already.”

Sam Price, chiming in, backed up Najarian’s point by highlighting a common misconception still held by many retail investors. “They still come up to me and say, ‘I can’t afford $84,000.’ And I said, you can buy two bucks of it today.”