Corporate treasuries could lead to a significant economic shift as bitcoin accumulation tactics modify capital distribution and production profitability globally.
From Holding BTC to Making Sales, a Strategic Corporate Approach Proposed by a Bitcoin Advocate
Pierre Rochard, CEO of the Bitcoin Bond Company and bitcoin advocate, outlined a proposal for corporate treasury strategy on Saturday via the social network X, illustrating a potential economic shift driven by the widespread adoption of bitcoin by companies. Rochard, an influential figure in the bitcoin community, emphasized that companies prioritizing bitcoin accumulation over reinvestment in their operations could lead to a feedback loop impacting the economy as a whole by altering production profitability.
In his message, Rochard expressed:
The more capital companies reserve in bitcoin instead of reinvesting it in their operations, the more input costs will decrease until the production of goods and services becomes as profitable as holding BTC.
“We are in such an early phase that this has not yet gained relevance, as the number of companies with BTC treasuries is insufficient,” he commented. This observation indicates that if a tipping point in bitcoin adoption within corporate treasuries is reached, it could fundamentally transform the way companies consider capital usage, potentially generating deflationary effects on the costs of goods and services.
He expanded his reflection by outlining a hypothetical process for companies that integrate bitcoin as a component of their financial strategy in another post on X:
One day, they start saving profits in BTC, the next they choose to acquire BTC instead of reinvesting in business operations, then they sell operations to buy more BTC, subsequently seek long-term financing to increase BTC purchases, and finally end up establishing a corporate treasury based on bitcoin.
This scenario reflects the path taken by the software intelligence firm Microstrategy (Nasdaq: MSTR), which has amassed significant bitcoin reserves through direct acquisitions and debt financing. Although some analysts consider such strategies risky due to bitcoin's volatility, proponents argue that the asset's limited supply and resistance to inflation make it an attractive option for preserving long-term value.