A recent report by River, a Bitcoin technology and financial services firm, predicts a significant shift in how US companies manage their financial reserves. The report suggests that over the next 18 months, around 10% of US-based companies could convert 1.5% of their treasury reserves—equivalent to $10.35 billion—into Bitcoin.
River’s analysts argue that traditional corporate treasury strategies relying on cash and short-term investments fail to protect against inflation. Even with current returns hovering near the federal funds rate of over 5%, these strategies often underperform against inflation, leading to a decline in the actual value of corporate treasuries. For example, Apple reportedly lost $15 billion of its treasury value over the past decade due to inflation.
The report highlights the growing influence of MicroStrategy’s treasury strategy, championed by its founder, Michael Saylor. In June 2024, MicroStrategy raised $800 million through a debt sale and used the proceeds to acquire 11,931 more Bitcoin, reinforcing its belief in Bitcoin’s potential to preserve corporate value.
Saylor views Bitcoin as a unique asset with “economic immortality,” thanks to its fixed supply and absence of counterparty risk—advantages that other assets, like real estate or stocks, lack. MicroStrategy’s strategy has paid off, with the company’s shares surging by over 1,000% since adopting its Bitcoin treasury plan, far outpacing Warren Buffett’s Berkshire Hathaway, which gained just 104.75% in the same period. Buffett, meanwhile, has remained skeptical of Bitcoin, choosing not to incorporate it into his investment strategy.
The report suggests that more US companies might follow MicroStrategy’s lead, reshaping the landscape of corporate finance in the coming years.