As a seasoned analyst with years of experience navigating the turbulent waters of financial markets, I find this trend towards corporate Bitcoin adoption particularly intriguing. The report suggesting $10.3 billion worth of Bitcoin purchases over 18 months by US companies is a testament to the evolving nature of corporate treasury strategies.


A fresh report indicates that American businesses could potentially invest around $10.3 billion in Bitcoin within the upcoming 18 months. This move is an extension of a burgeoning tendency in corporate financial planning, as companies seek innovative methods to safeguard their assets against rising inflation worries.

Criticisms by river analysts pointed out that traditional corporate treasury management strategies, which primarily focus on cash and similar instruments, tend to lose value over time. However, these investments can provide a return equal to the federal funds rate above 5%, but they fall short of inflation. Consequently, the worth of corporate treasuries, crucial organizational assets, can significantly decrease in value.

Additionally, it’s worth mentioning that this issue persists and hasn’t bypassed massive corporations like Apple. Over the last decade, due to inflation, Apple has faced a substantial loss of approximately $15 billion in the value of its treasury holdings.

MicroStrategy Holds 226,500 BTC, Valued at $14.7 Billion in Q2 2024

The adoption of Bitcoin as a corporate treasury asset is mostly linked with Michael Saylor, the CEO of MicroStrategy. Saylor proposed using Bitcoin as a means to protect against inflation and has described it as a route towards economic longevity due to its limited supply and relatively low risk compared to other conventional assets like real estate and stocks.

For example, in June 2024, MicroStrategy issued debt securities of $800 million to purchase an additional 11,931 BTC, which also confirms the company’s strong belief in this strategy. In Q2 2024, MicroStrategy owned 226,500 BTC, equivalent to 14.7 billion US dollars.

MicroStrategy effectively executed this strategy, evident in its strong performance. Following the firm’s decision to adopt Bitcoin as its main treasury reserve, its stock price surged by more than 1,000%, contrasting Berkshire Hathaway’s 104.75% increase.

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2024-09-07 22:52