On May 8, PANews reported that Chris Kuiper, Vice President of Research at Fidelity Digital Assets, spoke at the Strategy World 2025 conference, urging companies to reassess their considerations of risk, capital allocation, and long-term financial health. He pointed out that Bitcoin's compound annual growth rate over the past decade has reached 79%, far exceeding the nominal return rate of 1.3% for investment-grade bonds, proving that it is not only a speculative asset but also a strategic reserve. He emphasized that companies need to reevaluate risk and capital allocation, as inflation and currency devaluation are threatening balance sheets, with traditional safe havens like U.S. Treasuries now yielding negative real returns.
In response to the volatility controversy surrounding Bitcoin, Kuiper proposed position adjustments and long-term strategies, suggesting that companies allocate 1-5% of their assets to Bitcoin, which could enhance risk-adjusted returns and limit drawdowns. He also cited Microsoft as an example, noting that if excess cash is taken into account, its return on invested capital (ROIC) would drop from 49% to 29%, highlighting the inefficiency of cash. He concluded by stating that companies should focus more on their balance sheets rather than just their income statements, as Bitcoin can convert idle cash into productive assets, and asked executives, 'Can your opportunities outperform Bitcoin?'
