- 10% of U.S. companies are expected to invest 1.5% of their cash reserves ($10.35 billion) into Bitcoin in the next 18 months.
- Bitcoin Holdings Surge: Businesses now own 683,332 BTC, a 587% increase since mid-2020.
- U.S. Firms Lead: U.S. companies hold nearly 50% of corporate Bitcoin reserves, totaling $19.7 billion.
River, a leading Bitcoin technology firm, projects a significant shift in corporate finance over the next 18 months. It predicts that roughly 10% of U.S. companies will invest about 1.5% of their cash reserves, equivalent to $10.35 billion, into Bitcoin.
This trend underscores a broader movement as companies seek to hedge against inflation, a challenge traditional cash and short-term equivalents often struggle to address effectively. River Intelligence’s latest report highlights a remarkable surge in BTC adoption among businesses. Since BTC’s inception in 2008 as the world’s first digital currency, it has established itself as a robust alternative to fiat currencies for storing and transferring value.
The report reveals that businesses now hold approximately 3.3% of BTC’s total supply, translating to around 683,332 BTC as of August 18, 2024. This figure represents a dramatic 587% increase since mid-2020 and a 30% rise over the past year alone.
U.S. Companies Lead in Bitcoin Reserves
U.S.-based companies dominate this trend, controlling nearly 50% of the corporate Bitcoin reserves, amounting to $19.7 billion. Private companies lead in holdings, surpassing public firms, with notable players such as MicroStrategy and Block.one, Tether, BitMEX, and Xapo hold 82% of all corporate BTC. MicroStrategy and Tether alone account for 85% of reported BTC purchases among businesses in the first half of 2024.
The report indicates that business adoption of BTC has accelerated significantly in 2024. The number of publicly traded firms with BTC holdings has surged by 40% over the past year. Moreover, daily growth in business BTC holdings is estimated between 204 and 519 BTC, translating to a daily investment of $12.2 million to $31.1 million based on a $60,000 BTC price. Despite the rise of Bitcoin ETFs, most businesses prefer holding actual BTC to avoid being classified as “investment companies.”
A survey of River’s business clients reveals that 68% have joined since August 2023, with 70% never selling their BTC holdings. Concerns over accounting and tax treatment were the primary obstacles to adoption, yet 95% of respondents intend to increase their Bitcoin investments.
The report also showcases eight companies integrating Bitcoin into their strategies, ranging from SummerPlace Homes and Real Bedford F.C. to Tahini’s and Peony Lane Vineyards. However, BTC’s role extends beyond treasury reserves, with applications in cross-border payments, wage disbursements, and commerce transactions. The flexibility and efficiency of Bitcoin offer substantial advantages for businesses dealing with international contracts and remittances, high inflation environments, and transaction fees.
Related Reading | Polygon’s $MATIC to $POL Shift: What the Data Reveals in the First Week
