Companies and governments are increasingly adding bitcoin to their reserves. US Senator Cynthia Lummis proposed a bitcoin bill that requires the US Treasury to acquire 1 million $BTC over five years for the federal reserve. In March 2025, President Trump announced the creation of the Strategic Bitcoin Reserve, funded by cryptocurrencies confiscated by the US Treasury.
Why corporations choose cryptocurrency reserves
Traditionally, corporate reserves consisted of fiat money, gold, and government bonds to preserve value and ensure liquidity. However, money is losing purchasing power, bonds carry interest rate risks, and currency shocks hit balance sheets without warning.
#bitcoin , #Ethereum and stablecoins are now positioned next to traditional assets. For corporations, the task is simple: hedge against inflation, diversify currency risks, maintain round-the-clock liquidity, and test digital settlements. For states, the spectrum expands to strategic reserves, resilience to sanctions, and access to neutral global liquidity.
Bitcoin as digital gold
Since its inception, Bitcoin has occupied a unique position as the first and most well-known cryptocurrency. It attracts reserves seeking protection against inflation and risks of traditional currencies.
El Salvador made headlines in 2021 by adopting BTC as legal tender, while countries like Bhutan quietly incorporated Bitcoin into their reserves. In the corporate world, Strategy is known for its continuous acquisition of BTC, making it a core asset in reserves.
Bitcoin offers several advantages. It is highly liquid due to active global markets, scarce because of limited supply, and widely recognized in the financial world. To earn income from idle BTC, it needs to be combined with external lending or derivatives strategies.
As of September 16, 2025, Strategy alone controls approximately 638,985 BTC worth billions of dollars, demonstrating a long-term holding strategy. The number of publicly traded companies holding BTC has increased from 70 in December 2024 to 134 by mid-2025, accumulating nearly 245,000 BTC.
Ethereum as a programmable alternative
Although Bitcoin remains the cornerstone of cryptocurrency reserves, Ethereum has gained popularity as an attractive alternative, especially after the transition to the proof-of-stake algorithm known as The Merge in 2022. This change reduced energy consumption and introduced staking, which generates an annual yield of 3-5%, making $ETH a productive asset unlike BTC.
The Ethereum ecosystem adds value to it. Through decentralized finance (DeFi), reserves can access liquidity without selling their assets. The growing use of tokenized real assets, such as bonds and commodities, strengthens Ethereum's role as a financial platform.
Institutional adoption of ETH is growing. Companies are starting to hold Ethereum, and asset managers have introduced exchange-traded funds (ETFs) based on Ethereum for regulated investments. Even decentralized autonomous organizations (DAOs) use ETH as a reserve to ensure long-term stability.
As of September 16, 2025, 71 holders owned 4.91 million ETH worth $21.28 billion. Bitmine Immersion Tech (BMNR) is the largest holder of Ethereum with 2.15 million ETH worth $9.74 billion.
The dual strategy is gaining momentum
With the development of the cryptocurrency market, some governments and corporations are adopting a dual reserve strategy, holding both BTC and ETH. This approach combines the stability of Bitcoin and its global recognition as a reserve asset with the potential of Ethereum for generating returns.
The U.S. federal government has created a strategic cryptocurrency reserve containing approximately 198,000-207,000 BTC (approximately $17-20 billion), obtained through seizures and other means.
ETH distribution: an American digital asset storage for altcoins, including Ethereum, has been created. As of August 29, 2025, this storage contained about 60,000 ETH worth approximately $261 million according to an analysis of government addresses by Arkham Exchange.
BitMine Immersion Technologies demonstrates another example of a dual strategy. The company, focused on cryptocurrency mining and reserve management, maintains a small reserve of 192 BTC. Simultaneously, BMNR holds 2.15 million ETH with an estimated value of approximately $9.74 billion.
Which strategy wins in 2025
The competition between Bitcoin and Ethereum reserves demonstrates their unique strengths. By mid-2025, it became clear that reserves would increasingly utilize both assets.
Bitcoin is characterized by stability, wide trust, and global recognition, acting as the "reserve currency" of the cryptocurrency world. Its role as "digital gold" makes it the preferred choice for institutions and nations focused on long-term wealth preservation and liquidity assurance.
Ethereum, on the other hand, has gained popularity due to its ability to generate income, have practical utility, and support a growing ecosystem of tokenized assets. Reserves holding ETH can earn 3-5% per annum through staking, access liquidity through DeFi, and participate in markets for tokenized real assets.
The choice depends on the goals. Bitcoin is suitable for those who emphasize capital security, while Ethereum attracts those looking for growth and potential income. Although BTC currently leads in total reserves, ETH is actively narrowing the gap by attracting companies and decentralized organizations that place a high value on its programmable financial functions.