Key Points
A Bitcoin treasury strategy involves a company adding Bitcoin to its strategic reserves.
Some do it in a more passive way, while others use their holdings of $BTC to create innovative financial assets, such as convertible debt and yield-generating instruments linked to the price of Bitcoin.
Companies can leverage their strategic Bitcoin reserves to potentially enhance capital efficiency, protect against inflation, and attract new investment opportunities.
What is a Bitcoin treasury strategy?
Imagine a company's treasury as its piggy bank; it's where they keep money to pay bills, handle unexpected costs, or finance new projects. A Bitcoin treasury strategy is when a company decides to allocate part of that money to Bitcoin (BTC) alongside or instead of traditional assets like cash, bonds, or money market funds.
Companies like Strategy, Tesla, and even GameStop began adding it to their treasuries. Strategy (formerly MicroStrategy) alone holds around 576,230 BTC, valued at over $61 billion as of May 2025.
Why Companies Adopt Bitcoin Treasury Strategies
Companies adopt Bitcoin treasury strategies for various reasons, each addressing specific financial and operational objectives. Potential benefits include increased global liquidity, value preservation, capital growth, and much more.
1. Liquidity and flexibility
The global fungibility of Bitcoin and 24/7 trading can provide more liquidity and flexibility. For companies with international operations, holding Bitcoin can simplify cross-border transactions.
2. Protect against inflation
Due to the fixed supply of Bitcoin at 21 million coins, many argue it can be used as a hedge against the devaluation of fiat currency, especially in regions with volatile economies. Unlike traditional currencies, which can be inflated by central bank policies, the scarcity of Bitcoin offers independent value storage.
3. Diversification and investment potential
By holding BTC, companies can diversify their treasury portfolios beyond low-yield bonds or cash equivalents. The historical price growth of Bitcoin (though not guaranteeing future performance) attracts companies seeking long-term capital appreciation. For example, Michael Saylor's shift towards a Bitcoin-focused treasury strategy has redefined Strategy's valuation, with more than half of its market capitalization linked to Bitcoin holdings.
4. Attracting new investors
Bitcoin treasuries allow companies to access institutional capital funds that they otherwise could not access for direct investments in cryptocurrencies. By offering financial instruments linked to BTC, such as convertible debt or stocks tied to the value of Bitcoin, companies can provide indirect exposure to cryptocurrencies, attracting a broader range of traditional investors.
How a Bitcoin Treasury Strategy Works
Step 1: Make a plan
Companies decide how much Bitcoin to hold based on their risk tolerance, cash flow needs, and strategic objectives. Some companies, like Strategy, allocate a significant portion of their reserves to Bitcoin, while others, like Tesla, maintain smaller positions relative to their market capitalization.
Step 2: Buy Bitcoin
To acquire Bitcoin, companies can use surplus cash, take out loans, or sell shares. GameStop, for example, sold debt in March 2025 that could convert to stock to buy Bitcoin, which excited investors and increased its stock price.
Step 3: Keep it secure
Given the decentralized nature of Bitcoin, secure storage is critical. Companies often partner with qualified custodians to protect against fraud, theft, or hacking. The Bybit hack in 2025, which resulted in a loss of $1.5 billion, underscores the importance of top-tier security measures.
Step 4: Financial products
Bitcoin allows companies to think outside the box. They can create new financial products linked to the value of Bitcoin, such as convertible debt and yield-generating instruments. This can increase interest in the company's shares without needing to change its core business model.
Step 5: Ensure compliance
Cryptocurrency regulations are still evolving, so companies must stay informed about regulations. Ideally, they should also use 'mark-to-market' accounting, meaning they regularly update the value of Bitcoin on their books. Price volatility can lead to unrealized gains or losses, impacting earnings and balance sheet stability.
Potential Risks
Volatility: Fluctuations in the price of Bitcoin can cause volatility in earnings and liquidity risks. Depending on the strategy adopted, a sharp decline in the price of Bitcoin could strain a company's financial position.
Security: While Bitcoin offers liquidity and cross-border flexibility, companies must remain vigilant and implement strong custody measures to prevent hacks and fraud.
Distraction from core business: In some cases, a strong focus on Bitcoin may divert attention (and resources) from managing core operations, raising concerns about the company's strategic alignment.
Bitcoin Treasury Holdings of Publicly Traded Companies
The following are some examples of publicly traded companies that adopt Bitcoin treasury strategies. As of May 2025, there are at least 50 public companies with over 100 BTC:
Strategy (MSTR): Originally an analytics software company, Strategy transformed into a Bitcoin treasury company, holding 576,230 BTC worth over $63 billion. Its current strategy focuses on providing investors exposure to cryptocurrencies.
Marathon Digital Holdings (MARA): Specializing in Bitcoin mining and sustainable energy solutions, Marathon holds over 48,100 BTC worth over $5 billion.
Riot Platforms (RIOT): Focused on Bitcoin mining and Bitcoin-driven infrastructure, Riot holds over 19,200 BTC worth over $2 billion at the time of writing.
Tesla (TSLA): Considering its size and market capitalization, Tesla takes a more conservative approach, holding 11,509 BTC worth over $1 billion.
Final Thoughts
Bitcoin treasury strategies are revolutionizing how companies manage their money, turning their cash reserves into tools for creating capital, managing cash flow, and attracting investors. By leveraging Bitcoin's unique properties, companies can potentially protect against inflation, diversify reserves, and attract new capital. As cryptocurrency adoption continues to grow, Bitcoin treasury strategies may offer an interesting alternative to traditional treasury management.
