Abstract

The integration of Bitcoin (BTC) into corporate treasuries has emerged as a transformative strategy in modern financial management. This study investigates the rise of Bitcoin Treasury Companies (BTCs)—corporate entities allocating significant reserves to Bitcoin—as a response to inflation, currency debasement, and shifting institutional attitudes. Through analysis of major holders like MicroStrategy and Tesla, and the growing role of midmarket firms, the paper explores the strategic rationale, governance models, and macroeconomic implications. Recent data show public companies hold approximately 858,944 BTC, representing 4.09% of total supply, signaling the normalization of Bitcoin as a treasury asset. The study also highlights operational risks and future regulatory trajectories shaping BTC evolution.

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1. Introduction

Bitcoin’s emergence as a treasury asset reflects a structural shift in corporate financial strategy. Initially perceived as speculative, Bitcoin is now regarded by many CFOs as a durable store of value amid macroeconomic uncertainty. A new class of firms—Bitcoin Treasury Companies (BTCs)—have adopted the cryptocurrency as a strategic reserve asset. This paper examines the operational and economic implications of this trend, focusing on major institutional adopters and evolving corporate frameworks.

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2. Background and Literature Review

2.1 Bitcoin as a Treasury Asset

The pivotal moment came in August 2020, when MicroStrategy announced its plan to convert substantial cash reserves into Bitcoin. As of July 8, 2025, MicroStrategy holds 597,325 BTC, representing approximately 2.84% of Bitcoin’s fixed 21 million supply, valued at over $70.48 billion. This strategy has materially transformed the company’s risk-return profile, with its stock price increasingly mirroring Bitcoin’s market behavior.

Other adopters followed. Tesla holds 11,509 BTC ($1.36 billion), while Block, Inc. holds 8,584 BTC ($1.01 billion). Marathon Digital (49,179 BTC), Riot Platforms (19,225 BTC), and Metaplanet (13,350 BTC) round out the leading public holders. Together, these firms are part of a collective holding of 858,944 BTC—valued at $101.35 billion—demonstrating the institutional scale of this treasury approach.

2.2 Strategic Motivations

Corporate motivations include inflation hedging, diversification, and cross-border liquidity. The limited 21 million supply of Bitcoin appeals to firms managing depreciating fiat reserves. Moreover, Bitcoin’s decentralized nature and borderless settlement capacity offer strategic advantages in geopolitically volatile contexts (Peltz & Dargan, 2025).

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3. The Architecture of Bitcoin Treasury Companies

3.1 Organizational Models and Case Studies

BTCs typically treat Bitcoin as a long-term strategic asset. MicroStrategy exemplifies this model through ongoing capital raises dedicated to Bitcoin acquisition. GameStop (4,710 BTC), Semler Scientific (4,636 BTC), and Coinbase (9,267 BTC) have all incorporated BTC holdings as treasury policy components. ProCap BTC, LLC, a SPAC-linked entity holding 4,932 BTC, further exemplifies this hybrid treasury-investment model.

3.2 Business Model Evolution

Contemporary BTCs go beyond passive accumulation. ProCap Financial monetizes Bitcoin holdings through derivatives and collateralized lending, while KindlyMD secured $51.5 million in equity to support treasury integration and advisory services. These innovations reflect a maturation of treasury strategy into active crypto-financial operations.

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4. Drivers of Institutional Adoption

4.1 Macroeconomic Pressures

Inflation across developed economies has averaged 4–5% annually since 2022, eroding fiat reserves. Bitcoin offers a deflationary alternative. With traditional money markets providing negative real yields, CFOs increasingly favor BTC for its scarcity and inflation-hedging narrative. The total BTC held by public companies—over 4.09% of supply—attests to its growing legitimacy.

4.2 Geopolitical Risk and Capital Mobility

Capital controls, sanctions, and systemic banking risks expose corporate treasuries to liquidity crises. Bitcoin’s decentralized ledger enables global capital transfers independent of politicized intermediaries. This strategic flexibility is increasingly valued by multinationals and tech firms navigating volatile regulatory landscapes.

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5. Risk Factors in Bitcoin Treasury Strategies

5.1 Market Volatility

Bitcoin’s volatility remains a double-edged sword. While offering long-term appreciation, short-term price swings can distort quarterly financials. Mark-to-market accounting intensifies this impact, potentially affecting investor perception and equity valuation.

5.2 Regulatory and Legal Uncertainty

Legal frameworks remain fragmented. Public companies benefit from updated FASB rules allowing fair value accounting, but private firms must manage complex tax implications. Exposure to securities law, commodities regulation, and custody compliance adds further layers of risk (Peltz & Dargan, 2025).

5.3 Security and Custody Concerns

The security of Bitcoin holdings is paramount. Cold storage, multisignature wallets, and insured custodians mitigate theft and insolvency risks, but such systems involve costs and operational complexity.

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6. Outlook and Policy Implications

6.1 Institutional Convergence

With ETFs and securitized debt backed by BTC gaining approval, the distinction between crypto-native and traditional finance is narrowing. Firms increasingly treat Bitcoin alongside FX and commodity reserves, integrating it into strategic liquidity portfolios.

6.2 Innovation in Treasury Management

Emerging tools such as Lightning Network settlement, crypto-collateralized lending, and structured yield products allow firms to earn returns while holding Bitcoin. These innovations may further reduce BTC’s velocity in circulation, contributing to upward price pressures.

6.3 Regulatory Harmonization

Standardization is underway. U.S. FASB rules, EU’s MiCA II proposals, and similar efforts in Asia suggest a path toward global regulatory convergence, reducing barriers for midmarket firms to implement Bitcoin treasury policies.

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7. Conclusion

Bitcoin Treasury Companies represent a paradigm shift in corporate financial management. Their emergence signals a broader institutional embrace of decentralized monetary assets. While volatility, regulation, and custody remain key risks, strategic integration of Bitcoin offers resilience against macroeconomic and geopolitical shocks. As frameworks mature and secondary market tools evolve, BTCs are poised to become a normalized segment of the corporate finance ecosystem.

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References

• Peltz, M. E., & Dargan, K. L. (2025). Why Bitcoin Treasury Companies Are Taking Off and What It Means for Midmarket Private Companies.
• Cryptoast. (2025). Liste des Bitcoin Treasury Companies : ces entreprises cotées qui accumulent des BTC.
• Crypto.com. (2025). Bitcoin as a hedge against currency debasement: An analysis of corporate treasury strategies.
• Bitbo.io. (2025). Public Companies Holding Bitcoin. Retrieved from https://bitbo.io/treasuries/