Bitcoin Treasury

A corporate financial strategy involving the allocation of company reserves into Bitcoin as a primary treasury asset to preserve value and pursue long-term appreciation.

What is Bitcoin Treasury?

Bitcoin treasury refers to the practice where corporations allocate a portion or the majority of their cash reserves into Bitcoin, treating it as a strategic digital asset reserve rather than traditional fiat currency or bonds. This approach aims to hedge against inflation, currency devaluation, and low-interest environments by leveraging Bitcoin’s potential for appreciation. Pioneered by MicroStrategy (now operating as Strategy), it involves using debt and equity issuances to acquire Bitcoin, transforming the company into a leveraged digital asset vehicle. As of September 2025, publicly traded companies collectively hold over 1 million Bitcoin, representing more than 5% of the total supply, with Strategy leading at 640,031 BTC acquired at an average cost of $66,384.56 per Bitcoin.

The strategy has gained traction among firms seeking asymmetric upside from Bitcoin’s volatility while maintaining operational flexibility. For instance, Strategy has raised billions through convertible notes and preferred stocks to fund acquisitions, achieving a 25.9% BTC Yield year-to-date in 2025, far surpassing initial targets. Other adopters include smaller public companies following suit, though risks include price drawdowns that could force liquidations if leverage ratios exceed sustainable levels, as seen in Strategy’s targeted 20-30% leverage range.

This model contrasts with traditional treasuries by emphasizing Bitcoin’s scarcity and network effects over yield-generating fixed-income securities, influencing midmarket private companies to explore similar allocations for capital preservation.