For decades, business treasury bills have relied on species, bonds and short -term investments to preserve capital. But inflation, the devaluation of fiduciary currencies and almost zero interest rates have challenged this approach. A new black horse emerges and the financing of companies is about to change forever.
BTC as a business reserve ratio
Historically, companies have retained substantial cash reserves for stability and liquidity. However, as Michael Saylor, executive president of Microstrategy, argued, is like an ice cube thoroughly – losing his purchasing power because of his monetary discharge. Bitcoin offers an alternative: an asset with a fixed diet, global liquidity and an asymmetrical increase.
Since 2020, Microstrategy has aggressively accumulated Bitcoin, transforming his business record into an almost BTC bank. The company issues a convertible debt and equity to finance its purchases, taking advantage of a traditional financial approach to build a Bitcoin treasure. Just in 2024, Microstrategy acquired 257,000 BTC. This strategy has indirectly transformed microstrateggie into an ETF Bitcoin and a Bitcoin accumulation machine listed on the stock market, granting exposure to shareholders to BTC through its sharing shares $ MSTR.
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Two key measurements: Bitcoin by action and BTC yield
Microstrategy has popularized two key measures that each company studying this strategy must understand intimately: Bitcoin by Action (BPS) and BTC yield.
Bitcoin by action (BPS): The number of bitcoins held by current action. This metric allows investors to measure the indirect exposure of a company BTC.
BTC yield: The variation as a percentage of the number of bitcoin by action over time. This KPI tries to reflect how much a business acquires the BTC.
Source: mstrtracker.com
Corporate supercycle
While many companies maintain traditional cash strategies, a fundamental change in business financing emerges. More than 70 listed companies now hold bitcoin on their balance sheets, including Tesla, Coinbase and Block. Even companies outside the technology and finance sectors adopt this approach, demonstrating its large applicability in all industries.
This adoption represents more than a trend – it is a transformation of the way companies can create and preserve the value of shareholders. The regulatory environment evolves to support this change in three critical ways:
- The inversion of SAB21 has a fundamentally improved improvement in Bitcoin’s utility as an actor. By allowing regulated financial institutions to provide childcare services, companies can now take advantage of their Bitcoin funds more effectively through established banking relations.
- The historic accounting changes of the FASB create a more precise reflection of the Bitcoin economy on the financial statements of companies. Under these rules, companies accumulating Bitcoin can now recognize the assessment of their profits, providing a clear mechanism for value creation thanks to the strategic acquisition of Bitcoin.
- Bitcoin Act 2024 proposed and wider regulatory clarity report an increasing institutional acceptance, reducing systemic risks for the adoption of businesses.
Companies can now generate profits thanks to the strategic accumulation of Bitcoin while simultaneously taking a position in an asset with significant appreciation potential. This combination of the current impact of profits and future value potential echoes the classic principles of Warren Buffett to find companies that can both generate current yields and reinvest capital at attractive rates.
Upcoming transformation is not just about adding Bitcoin to balance sheets – it is a question of fundamentally rethinking the management of business treasures for an era of digital rarity. Companies that understand this change early will have a significant advantage in creating cash items at attractive prices, as are the first adopters on the Internet.
We are entering a new era in corporate finance, where the unique Bitcoin properties combine with the evolution of the financial infrastructure to create unprecedented opportunities for the creation of value and preservation.
Companies that recognize and act early on this quarter work will likely emerge like the Berkshire Hathaways in the digital era.
