The global interchangeability of Bitcoin and its ability to be traded around the clock provide more liquidity and flexibility. For companies with international operations, Bitcoin balances can be used to simplify cross-border transactions.
2. Hedge against inflation
Due to Bitcoin's fixed supply of 21 million coins, many say it can be used as a means to hedge against the devaluation of local fiat currencies, especially in areas with volatile economies. Unlike traditional currencies, which can be subject to inflation due to central bank policies, Bitcoin's scarcity provides an independent means of storing value.
3. Asset diversification and investment potential
By owning BTC, companies can diversify their investment portfolios away from low-yield bonds or equivalent cash assets. The historic growth of Bitcoin prices (although this is not a guarantee of future performance) has attracted companies seeking to achieve long-term capital appreciation. For example, Michael Saylor's shift to a Bitcoin-focused treasury strategy redefined the valuation of Strategy, where more than half of its market value was tied to Bitcoin balances.
