This is according to Crypto.com, which says that the cryptocurrency’s fixed supply positions it as a deflationary alternative to fiat currencies and symbol of innovation for companies like Strategy (formerly MicroStrategy) who choose to be pioneers.
But even Crypto.com admits that the impact of a cryptocurrency treasury reserve can pose challenges as it relates to regulatory uncertainties, the need for secure custody solutions and the impact of broader volatility when bitcoin -–which is subject to some fairly hefty price swings – makes up part of a corporate balance sheet.
“Despite these, the growing acceptance of bitcoin in traditional finance, as evidenced by endorsements from financial institutions and governments, suggests a maturing market. BTC’s outstanding performance in the past 10 years highlights the potential for significant long-term financial performance during high inflation periods,” the company said in a recent market note.
It comes as the world’s largest cryptocurrency is cementing itself into the mainstream with UEFA Champions League winner, PSG, becoming the first major football club to confirm holding bitcoin in its treasury. Also making news is Meta’s proposal to establish its own bitcoin treasury, which was promptly blocked by its shareholders with 95 per cent voting against the proposal.
Commenting on these announcements, Coinstash founder Mena Theodorou said: “This is a win-win move, creating further proof of bitcoin’s value as a store of value and providing the football powerhouse with a strategic route to bringing global crypto-enthusiasts into its fanbase.”
On Meta’s shareholders’ overwhelming rejection, he said: “Investors will want to see more examples of success in companies taking this approach before they view corporate crypto treasuries as a good idea overall.”
In conversation with InvestorDaily, the Coinstash co-founder said volatility remains a key consideration when it comes to establishing a bitcoin treasury reserve. However, companies are becoming more thoughtful and strategic in how they manage it.
“Some are taking a long-term approach by allocating a small portion of their treasury to bitcoin. This gives them exposure to potential upside without putting the business at significant risk,” he said.
“We are also seeing more formal risk management frameworks being developed. Companies are introducing clear policies around things like position sizing, rebalancing and using multiple custodians to reduce operational risk.
“On the financial side, there are more tools available now than there were just a few years ago. Bitcoin-backed loans, hedging instruments and structured products designed for institutions are helping companies manage price fluctuations more effectively.”
Theodorou added that, with greater adoption and deeper liquidity, bitcoin’s price swings are also becoming progressively less extreme. A “natural part of its evolution”, he believes that the cryptocurrency will become more appealing to businesses looking for long-term strategic assets as it further matures.
Trent Barnes, principal at digital asset trading firm Zerocap, believes that in most high-profile bitcoin treasury strategies, such as Metaplanet and Twenty One Capital, the “core thesis” is still long-term accumulation.
“So traditionally, there hasn’t been a focus on short-term volatility management. It’s been more about conviction than precision,” Barnes told InvestorDaily.
“We’re now starting to see a more sophisticated playbook emerge,” he said.
“Covered calls, yield optimisation, and structured products are being layered in, particularly by those looking to outperform ’just holding’ through a higher BTC per-share metric.”
Now, frameworks are beginning to more closely resemble traditional asset allocation strategies, characterised by hedging, rebalancing and yield overlays.
“It’s still early days, but the shift towards institutional-grade treasury management is underway,” Barnes added.
