#$BTC WHY ARE BUSINESSES ALLOCATING ASSETS TO BITCOIN?

$BTC Businesses are accumulating Bitcoin primarily because it can act as a hedge against inflation and preserve value.

Cash has lost significant value as inflation rises and governments continue to print money. River calculates that a company that invested 3% of its assets in Bitcoin would have earned an inflation-adjusted return of 20% between 2021 and 2025. In contrast, holding only cash would have lost 19%, while money market funds would have lost 6.7%.

Bitcoin also offers 24/7 liquidity, giving businesses access to capital at any time. This has proven invaluable during crises, such as the collapse of Silicon Valley Bank in 2023, when many companies were unable to withdraw their cash.

Another reason is the reduction in risk from the traditional banking system. Bitcoin allows businesses to manage their assets, minimizing third-party risk.

According to data from BitcoinTreasuries, private and public companies have accumulated more than 1 million BTC by 2025. Standard Chartered estimates that accumulation activity by companies, governments and ETFs could push Bitcoin to US$120,000 by Q2 2025.