Crypto discussions among corporates grew in Q1 2021, yet negativity persists

Despite the market volatility, cryptocurrency has gained traction among corporates over the last five years, according to GlobalData. The leading data and analytics company’s filing analytics database reveals that, mentions of ‘crypto’ and related keywords in company filings rose by over 125% in Q1 2021, compared to Q4 2020 – the sharpest increase since the peak in Q2 2018.

Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments: “It looks like crypto is back on the menu as companies are looking to expand their cryptocurrency portfolios. However, crypto-related discussions in company filings were mostly mixed - with some negative views also looming. The Chinese crackdown on crypto seems to have fuelled a rise in negativity, which stood at nearly 25% in Q1 2021 versus 19% in Q4 2020.”

Despite underlying risks, ‘Bitcoin’ was the most mentioned cryptocurrency among corporates in 2020 and Q1 2021. ‘Ethereum’ was also mentioned, but much less than Bitcoin. Compared to Q4 2020, Bitcoin mentions grew multifold in Q1 2021, yet the growth in Bitcoin discussions was relatively flat (compared to Q1 2020).”

Cryptocurrencies other than Bitcoins are known as Altcoins. Manish Dixit, Principal Disruptive Tech Analyst at GlobalData, expects Altcoins to gain more traction following the crypto crash.

Dixit comments: “Due to Bitcoin’s high price points, Altcoins look to be lucrative for investors and act as a smart contingency option if Bitcoin’s value falls. Given the transient nature of bitcoins, the adoption of Altcoins is expected to accelerate. The surge in Altcoins is challenging Bitcoin’s market dominance, with Altcoins being considered as an alternative to springboard the next crypto surge.”

In 2021*, MicroStrategy had the most mentions of ‘cryptocurrency’ and related keywords in its filings, with around 50% neutral statements. The company also has a higher percentage of positive comments around crypto in 2021 than the average company in GlobalData’s Disruptor Intelligence Center.