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The incorporation of Bitcoin into corporate treasuries has evolved from an emerging trend to a strategic advantage. With industry leaders like MicroStrategy, Tesla, and Square paving the way, organizations worldwide are exploring Bitcoin as a tool to hedge against inflation and diversify their balance sheet holdings.
For corporations, Bitcoin offers more than just an investment; it's a step towards financial innovation rooted in data-backed success. This guide explores why businesses are adding Bitcoin to their treasuries, its benefits, and practical steps to integrate it into your corporate strategy.
Corporate treasurers traditionally focus on cash and short-term assets to manage liabilities and ensure liquidity. However, macroeconomic shifts, inflationary concerns, and declining returns on traditional assets are prompting firms to explore allocating a percentage of their balance sheet to alternatives like Bitcoin.
Here’s why companies have added Bitcoin to their corporate treasury:
1. Hedge Against Inflation
With central banks' monetary policies raising inflation concerns, Bitcoin's fixed supply of 21 million coins offers a potential hedge. Businesses can safeguard their purchasing power by holding Bitcoin as a store of value.
2. Diversification of Holdings
Bitcoin enhances portfolio diversification as an alternative investment. An allocation of 1-5% in Bitcoin can provide exposure to an emerging asset class, potentially improving overall portfolio efficiency.
3. Utility for Large Payments
Bitcoin enables quick and cost-effective movement of large sums, bypassing traditional banking systems. This peer-to-peer transaction capability offers faster, secure, and often more cost-effective transfers.
4. Marketing and Publicity Opportunities
While not the primary reason to invest, holding Bitcoin can generate positive publicity and position your company as forward-thinking and innovative.
5. Support for the Bitcoin Ecosystem
Companies like Tesla have demonstrated their belief in Bitcoin's potential by both holding and accepting it for payments. This aligns with tech-driven business models focused on expanding payment options for consumers.
El Salvador
El Salvador made global headlines by becoming the first country to adopt Bitcoin as legal tender in 2021. This move reshaped the country’s financial landscape and encouraged other nations and businesses to consider Bitcoin more seriously.
As of January 2025, the country holds approximately 6,000 Bitcoins in its reserves, valued at around $570 million. This represents a significant increase in value, with President Nayib Bukele noting that the country's Bitcoin reserves are now worth 127% more than their initial investment.
El Salvador recently secured a $1.4 billion loan agreement with the International Monetary Fund (IMF), requiring some adjustments to its Bitcoin policies, such as making Bitcoin acceptance voluntary for businesses rather than mandatory. However, the country remains steadfast in its cryptocurrency strategy and continues to grow its Bitcoin reserve.
El Salvador's continued investment in Bitcoin, even in the face of international pressure, underscores its belief in the cryptocurrency's long-term potential. This persistent strategy may inspire other nations and corporate treasuries to consider Bitcoin as a viable option for their reserves and international transactions.
Vancouver
Closer to home, Vancouver is the latest example of efforts in the western world for establishing Bitcoin-friendly policies and infrastructure. The city council just passed a motion that aims at making Vancouver “Bitcoin-friendly” with the mayor stating that this move will “set the city up for the next 100 years”. This approach could make Vancouver a hub for Bitcoin startups and enterprises as well.
Miami
Miami has emerged as a pro-Bitcoin city, embracing cryptocurrency innovation:
These initiatives have positioned Miami as a Bitcoin-friendly destination, attracting blockchain startups and fostering a vibrant digital asset ecosystem.
For corporations ready to take the leap, here’s a step-by-step guide to acquiring and managing Bitcoin for your treasury.
1. Set Up a Business Account on a Trusted Platform
Choose a secure, regulated cryptocurrency platform optimized for business transactions, such as Bitbuy. Platforms like Bitbuy ensure compliance with legal frameworks while offering transparency and security for corporate users.
On Bitbuy, you’ll register as a business user, provide necessary verification documents, and fund your account with approximately $50,000 CAD (or the equivalent in your local currency).
2. Engage With OTC Specialists
Over-the-counter (OTC) trading desks are ideal for large-scale transactions to minimize market slippage. Instead of buying Bitcoin directly on a trading platform, corporate treasuries can benefit from better pricing and personalized service. Bitbuy’s OTC desk provides live quotes and streamlined purchasing processes for transactions above $50,000 CAD.
3. Understand Local Regulations
Each region has specific legal and tax implications for holding Bitcoin. El Salvador's government, for example, offers incentives for Bitcoin holders, while Vancouver’s motion aims to adopt Bitcoin reserves for the city. Make sure to check with local legal consultants to ensure compliance in your jurisdiction.
MicroStrategy
Led by Michael Saylor, MicroStrategy made waves as the first publicly traded company to adopt Bitcoin as its primary reserve asset. The company holds over $47 billion worth of Bitcoin as of December 2024, citing its ability to hedge inflation and optimize capital.
Tesla
Tesla has strategically embraced Bitcoin as part of its corporate vision, demonstrating the cryptocurrency’s potential as both an investment and a payment solution. Since its initial purchase on February 7, 2021, Tesla has achieved a return of +208.32% as of December 2024.
The company’s Bitcoin holdings now amount to approximately $1.04 billion USD. By not only holding Bitcoin but also accepting it as payment for vehicles, Tesla highlights the versatility of this digital asset. This forward-thinking approach shows how Bitcoin can serve as both a store of value and a practical tool within a modern corporate strategy.
WonderFi
In Q3 2024, WonderFi Technologies Inc. (TSX: WNDR) launched a corporate treasury buying program, marking a significant step in its crypto investment strategy. The company’s disciplined approach resulted in an average cost basis of approximately USD $54,061 per Bitcoin in its treasury as of December 2024.
Bitcoin is now considered to be strategic asset for many corporations offering benefits for treasury operations from hedging inflation to enabling seamless cross-border transactions.
Key Takeaways:
If your corporation is considering adding Bitcoin to its treasury, platforms like Bitbuy offer tailored solutions for corporate users. Take the first step by creating a business account, engaging with OTC specialists, and integrating Bitcoin into your financial strategy.
Bitcoin isn’t just an investment—it’s a competitive edge in the digital age. Explore the opportunities today by reaching out to one of our OTC professionals: https://bitbuy.ca/en-ca/bitbuy-corporate-solutions
