Key points
With a Bitcoin treasury strategy, a company adds BTC to its strategic reserves.
Some do this more passively, while others use their BTC holdings to create innovative financial instruments, such as convertible debt and income-generating instruments tied to the price of Bitcoin.
Companies can use strategic reserves in Bitcoin to enhance capital efficiency, hedge against inflation, and explore new investment opportunities.
What is a treasury strategy with Bitcoin
Imagine that a company's treasury is a piggy bank. It holds money to pay bills, cover unexpected expenses, and fund new projects. A treasury strategy with Bitcoin is when a company decides to invest a portion of its funds in Bitcoin (BTC) instead of or alongside traditional assets. Traditional assets include fiat money, bonds, and money market funds.
Companies like Strategy, Tesla, and even GameStop have started adding BTC to their treasury reserves. Strategy (formerly MicroStrategy) holds approximately 576,230 BTC, which as of May 2025 is worth over $61 billion.
Why companies add Bitcoin to their treasuries
Companies invest in Bitcoin for various reasons depending on their financial and operational goals. BTC has many potential benefits: increased international liquidity, value preservation, capital appreciation, and more.
1. Liquidity and flexibility
The global interchangeability of Bitcoin and 24/7 trading enhance liquidity and flexibility. International companies can use Bitcoin to simplify cross-border transactions.
2. Inflation hedge
The supply of Bitcoin is limited: only 21 million coins will ever be issued. Because of this, many argue that BTC can be used as a hedge against the devaluation of fiat currencies, especially in regions with unstable economies. Unlike traditional currencies, which are subject to inflation due to central bank policies, Bitcoin is supported by scarcity and thus creates an independent store of value.
3. Diversification and investment potential
Through BTC, companies diversify their treasuries beyond low-yield bonds and cash equivalents. The historical price growth of Bitcoin (though it does not guarantee future returns) attracts companies seeking long-term capital appreciation. For example, when Michael Saylor decided to focus on Bitcoin, he changed Strategy's treasury strategy: more than half of its market capitalization is now tied to BTC.
4. Attracting new investors
Bitcoin treasuries are advantageous for institutional investors who cannot or are not willing to invest in cryptocurrencies directly. When companies offer financial instruments with BTC, such as convertible debt and equity linked to Bitcoin, users can interact with the cryptocurrency indirectly. This attracts a broad range of traditional investors.
How a treasury strategy with Bitcoin works
Step 1. Create a plan
The amount of Bitcoin in a company's treasury depends on its risk tolerance, cash flow needs, and strategic goals. For example, Strategy allocates a large portion of its reserves to BTC, while Tesla maintains small positions relative to its market capitalization.
Step 2. Buy Bitcoin
To acquire Bitcoin, companies can use free fiat funds, take loans, or sell shares. For example, in March 2025, GameStop sold convertible debt that could be converted into shares to buy BTC. This inspired investors and led to a rise in stock prices.
Step 3. Store BTC securely
Bitcoin is decentralized, so it is important to store it securely. To protect against fraud, theft, and hacking, companies typically collaborate with qualified custodians. The Bybit hack in 2025, which resulted in a loss of $1.5 billion, underscores the importance of top-notch security measures.
Step 4. Explore financial products
Bitcoin allows companies to think outside the box. They can create new financial products tied to the value of BTC. For example, convertible debt and income-generating instruments. This can increase interest in the company's stock even without changes to its core business model.
Step 5. Monitor regulatory developments
Regulations for cryptocurrencies are still being developed, so it is necessary to keep an eye on legislative changes. Ideally, a market revaluation should also be conducted, meaning regularly updating the value of BTC on their books. Price volatility can lead to unrealized gains or losses, impacting revenues and balance sheet stability.
Potential risks
Volatility: fluctuations in the price of Bitcoin cause volatility in profits and liquidity risks. Depending on the chosen strategy, a sharp drop in BTC could jeopardize the company's financial position.
Security: companies need to remain vigilant and implement robust storage measures to prevent hacks and fraud.
Distraction from core business: in some cases, excessive attention to Bitcoin can divert management (and resources) from core operations, which sometimes raises concerns about the company's strategy.
Examples of public companies with Bitcoin reserves
Let's consider examples of public companies using Bitcoin in their reserves. As of May 2025, there are at least 50 public companies that hold more than 100 BTC:
Strategy (MSTR): originally involved in analytics software, then formed a Bitcoin treasury of 576,230 BTC worth over $63 billion. Now, Strategy provides investors with access to cryptocurrencies.
Marathon Digital Holdings (MARA): specializes in Bitcoin mining and clean energy solutions, holds over 48,100 BTC worth more than $5 billion.
Riot Platforms (RIOT): specializes in Bitcoin mining and Bitcoin infrastructure, holds over 19,200 BTC worth more than $2 billion at the time of writing.
Tesla (TSLA): takes a more conservative approach and holds 11,509 BTC worth over $1 billion, which is not much considering the size of the company and its market capitalization.
In conclusion
Companies are adding Bitcoin to their treasuries and changing their approach to fund management. Reserves become tools for capital creation, cash flow management, and attracting investors. The unique properties of Bitcoin have the potential to hedge against inflation, diversify reserves, and attract new capital. The adoption of cryptocurrencies continues to grow, and BTC strategies may become an interesting alternative to traditional treasury management.
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