Bitcoin could hit $250,000 if U.S. companies opt to do this, says Cathie Wood

Cathie Wood, the chief executive of ARK Invest and manager of the popular ARK Innovation exchange-traded fund, said that a single bitcoin could be valued at $200,000 more than its current price if more corporations added the cryptocurrency to their balance sheets.

“If all corporations in the U.S. were to put 10% of their cash into bitcoin that alone would add $200,000 to the bitcoin price,” Wood told CNBC on Wednesday.

Wood said that she doubts that such balance-sheet moves by corporations will happen quickly and expects that bitcoin will need to further mature before there is broad-based inclusion. Wood said she was surprised, however, by the current pace of companies incorporating bitcoin in their books.

“We expected institutions to [buy bitcoin] but the way in which it has picked up has surprised us…the substitution of bitcoin for cash on corporate balance sheets,” Wood told CNBC.

“It has to mature a little bit before broad-based adoption can take place,” she said.  

Comments from the ARK ETF
ARKK,
-1.90%

boss come as Tesla Inc.
TSLA,
+0.24%

last week said it acquired $1.5 billion in bitcoin in January and that it could accept the world’s No. 1 digital asset for payment in the future.

Read: Why did Tesla buy bitcoin?

For her part, Wood has been viewed as a technophile, with her investments ranging from companies focused on electric vehicles to artificial intelligence, and she has been particularly enthusiastic about cryptos, which ARK gains exposure via Grayscale Bitcoin Trust
GBTC,
+7.48%
.

Wood’s flagship fund has returned about 160% over the past 12 months and grown its assets by more than 10-fold, to $22 billion, FactSet data show. ARK Innovation is now the largest active ETF in the world.

Meanwhile, bitcoin prices were trading up 80% year to date, around a record above $52,000, while the Dow Jones Industrial Average
DJIA,
+0.29%

 was up 3.3%, the S&P 500
SPX,
-0.03%

was up 4.6%. The Nasdaq Composite
COMP,
-0.58%

indexes was up 8.2% so far in 2021.