MicroStrategy

Key Takeaways

A Bitcoin treasury strategy consists of a company adding bitcoin to their strategic reserves.

Some do it in a more passive way, while others use their BTC holdings to create innovative financial assets, such as convertible debt and yield-bearing instruments linked to Bitcoin’s price.

Companies can leverage their strategic Bitcoin reserves to potentially improve capital efficiency, hedge against inflation, and attract new investment opportunities.

What Is a Bitcoin Treasury Strategy?

Picture a company’s treasury as its piggy bank—it’s where they keep money to pay bills, handle unexpected costs, or fund new projects. A bitcoin treasury strategy is when a company decides to put some of that money into bitcoin (BTC) alongside or instead of traditional assets like cash, bonds, or money market funds.

Companies like Strategy, Tesla, and even GameStop started adding it to their treasuries. Strategy (formerly MicroStrategy) alone holds about 576,230 BTC, worth over $61 billion as of May 2025.

Why Companies Adopt Bitcoin Treasury Strategies

Companies adopt bitcoin treasury strategies for different reasons, each addressing specific financial and operational goals. The potential benefits include enhanced global liquidity, value preservation, capital growth, and much more.

1. Liquidity and flexibility

Bitcoin’s global fungibility and 24/7 trading can provide more liquidity and flexibility. For companies with international operations, holding bitcoin can be used to simplify cross-border transactions.

2. Hedge against inflation

Due to bitcoin’s fixed supply of 21 million coins, many argue that it can be used as a hedge against fiat currency devaluation, especially in regions with volatile economies. Unlike traditional currencies, which can be inflated by central bank policies, bitcoin’s scarcity offers an independent store of value.

3. Diversification and investment potential

By holding BTC, companies can diversify their treasury portfolios beyond low-yield bonds or cash equivalents. Bitcoin’s historical price growth (though not a guarantee of future performance) attracts companies seeking long-term capital appreciation. For instance, Michael Saylor’s shift to a bitcoin-centric treasury strategy has redefined Strategy’s valuation, with more than half of its market capitalization tied to bitcoin holdings.

4. Attracting new investors

Bitcoin treasuries allow companies to tap into institutional capital pools that would otherwise be unable to access direct crypto investments. By offering BTC-linked financial instruments, such as convertible debt or equity tied to bitcoin’s value, companies can provide indirect crypto exposure, appealing to a wider range of traditional investors.

How a Bitcoin Treasury Strategy Works

Step 1: Make a plan

Companies decide how much bitcoin to hold based on their risk tolerance, cash flow needs, and strategic goals. Some companies, like Strategy, allocate a significant portion of their reserves to bitcoin, while others, like Tesla, maintain smaller positions relative to their market cap.

Step 2: Buy bitcoin

To get bitcoin, companies might use spare cash, take out loans, or sell stock. GameStop, for instance, sold debt in March 2025 that could turn into stock to buy bitcoin, which got investors excited and boosted its share price.

Step 3: Keep it safe

Given Bitcoin’s decentralized nature, secure storage is critical. Companies usually partner with qualified custodians to protect against fraud, theft, or hacking. The 2025 Bybit hack, which resulted in a $1.5 billion loss, underscores the importance of top-notch security measures.

Step 4: Financial products

Bitcoin lets companies think outside the box. They can create new financial products tied to bitcoin’s value, such as convertible debt and yield-bearing instruments. This may increase interest in the company’s stock without the need to change its main business model.

Step 5: Ensure compliance

Crypto rules are still a work in progress, so companies have to stay on top of regulations. Ideally, they should also use “mark-to-market” accounting, which means they update bitcoin’s value on their books regularly. Price volatility can lead to unrealized gains or losses, impacting earnings and balance sheet stability.

Potential Risks

Volatility: Bitcoin’s price fluctuations can cause earnings volatility and liquidity risks. Depending on the strategy adopted, a sharp decline in bitcoin’s price could strain a company’s financial position.

Security: While bitcoin offers cross-border liquidity and flexibility, companies must remain vigilant and implement strong custodial measures to prevent hacks and fraud.

Distraction from core business: In some cases, heavy focus on bitcoin may divert management attention (and resources) from primary operations, which may raise concerns about the company’s strategic alignment.

Bitcoin Treasury Holdings of Publicly Traded Companies

Below are some examples of publicly traded companies that adopt bitcoin treasury strategies. As of May 2025, there are at least 50 public companies with more than 100 BTC:

Strategy (MSTR): Originally an analytics software firm, Strategy transformed into a bitcoin treasury company, holding 576,230 BTC worth more than $63 billion. Its current strategy focuses on providing investors with crypto exposure.

Marathon Digital Holdings (MARA): Specializing in bitcoin mining and sustainable energy solutions, Marathon holds more than 48,100 BTC worth over $5 billion.

Riot Platforms (RIOT): Focused on bitcoin mining and bitcoin-driven infrastructure, Riot holds more than 19,200 BTC worth over $2 billion at the time of writing.

Tesla (TSLA): If we consider its size and market cap, Tesla adopts a more conservative approach, with 11,509 BTC worth over $1 billion.

Closing Thoughts

Bitcoin treasury strategies are shaking up how companies handle their money, turning their cash reserves into tools for creating capital, managing cash flow, and attracting investors. By leveraging bitcoin’s unique properties, companies can potentially hedge against inflation, diversify reserves, and attract new capital. As crypto adoption continues to grow, Bitcoin treasury strategies can offer an interesting alternative to traditional treasury management.

Further Reading

What Is Bitcoin and How Does It Work?

How Can Tariffs Impact the Crypto Markets?

Who Is Michael Saylor?

What Is Cryptocurrency Mining and How Does It Work?

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