According to a new report from River, a Bitcoin technology and financial services firm, an estimated 10% of US-based companies will likely convert 1.5% of their treasury reserves, or approximately $10.35 billion, to Bitcoin over the next year and a half. The report claimed that a cash treasury "supplemented with a 3% allocation to Bitcoin" would have shielded companies from inflation since 2020.
Analysts for River pointed out that traditional corporate treasury strategies relying on cash and other short-term cash equivalents are poor stores of value. The report noted that this inflationary erosion caused Apple, now a trillion-dollar corporation, to lose $15 billion of its treasury holdings over the last 10 years.
The report's projections of corporate Bitcoin holdings by 2026 suggest that more companies are set to increase their exposure to the leading cryptocurrency. This reflects a growing trend of institutional adoption and the potential for Bitcoin to serve as a hedge against inflation in corporate treasury strategies.
The information provided in this article is for informational and educational purposes only, based on news and sources gathered from the internet. This content should not be considered as investment advice, financial guidance, or a suggestion to buy or sell any digital assets. Before making any financial decisions, we recommend consulting with a professional financial advisor and conducting your own research. The author and the blog are not responsible for any losses or damages that may arise from using this content.
Comments