A Bitcoin (BTC) reserve strategy is a financial plan for corporations and governments to hold Bitcoin as a treasury asset. This approach, pioneered by companies like MicroStrategy and adopted by others like Tesla and Metaplanet, is a way to hedge against inflation and diversify traditional portfolios.
The strategy is based on Bitcoin's fixed supply of 21 million, which proponents believe makes it a superior store of value to fiat currencies prone to debasement. By holding BTC on their balance sheets, institutions are betting on its long-term growth and its potential to act as a hedge against economic and geopolitical instability. While there's a risk due to Bitcoin's price volatility, the strategy has gained traction as a means of modernizing financial reserves and demonstrating a commitment to a digitally-native future.
