CoinVoice recently learned that, according to Bitcoin Magazine, 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 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 risks and capital allocation, as inflation and currency devaluation are threatening balance sheets, and traditional safe havens like U.S. Treasuries have turned negative in real returns.
In response to the volatility controversy surrounding Bitcoin, Kuiper proposed position adjustments and long-term strategies, recommending that companies allocate 1-5% of their assets to Bitcoin, which can enhance risk-adjusted returns and limit drawdowns. He also cited Microsoft as an example, pointing out 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 that companies should focus more on the balance sheet rather than just the income statement, as Bitcoin can convert idle cash into productive assets, and asked executives: 'Can your opportunities outperform Bitcoin?' [Original link]
