Making Sense of Bitcoin’s Growing Relevance for Corporate Treasuries

Cryptocurrencies have been more financial and investment vehicles than payment mechanism, despite ongoing aspirations to the latter.

As the broader ecosystem warms to digital assets, this increasingly makes it essential for corporate treasuries to evaluate crypto’s role in their financial ecosystem.

Companies such as MicroStrategy and Block have added bitcoin to their balance sheets, while other firms across industries are looking into exploring its potential as both an investment vehicle and a transactional asset.

On Wednesday (Feb. 5), MicroStrategy, which holds north of $45 billion of bitcoin as of reporting, and is the world’s largest corporate holder of the digital asset, announced it is now doing business as Strategy. The new logo includes a stylized “B” the company says signifies its bitcoin strategy and its position as a bitcoin treasury company. The brand’s primary color is now orange, which it says represents energy, intelligence and bitcoin.

“Strategy is innovating in the two most transformative technologies of the twenty-first century — bitcoin and artificial intelligence. Our new name powerfully and simply conveys the universal and global appeal of our company, and the value we bring to the strategies of our shareholders, customers, partners, and employees,” Strategy President and CEO Phong Le said in the announcement.

Despite the rebranding efforts, Strategy on Wednesday reported a net loss of $670.8 million, or $3.03 per share, for the fourth quarter ending Dec. 31, 2024. This contrasts with a profit of $89.1 million, or 50 cents per share, in the same period the previous year. The loss was primarily attributed to a $1.01 billion impairment charge on its bitcoin holdings, a significant increase from the $39.2 million impairment recorded a year earlier.

Read more: Blockchain and AI: The Dynamic Duo Shaking Up Treasury Teams

Bitcoin as a Store of Value and Treasury Reserve Asset

To fund its aggressive bitcoin acquisitions, Strategy has been active in capital markets. The company has completed $20 billion of its planned $42 billion capital raise, utilizing proceeds from equity and debt financings, as well as cash flows from operations. In January 2025, Strategy raised an additional $584 million through the sale of convertible preferred shares, further bolstering its resources for bitcoin purchases.

Strategy CEO Michael Saylor has long argued that bitcoin represents the best long-term store of value for corporate treasuries, likening it to prime real estate. Unlike cash, which can depreciate due to inflation, or gold, which has high storage and security costs, bitcoin offers a scarce, borderless and easily transferable reserve asset. Strategy’s decision to move beyond BI software and fully embrace a bitcoin-centric business model underscores the growing institutionalization of digital assets.

Looking ahead per its latest quarterly results, Strategy plans to shift its focus more toward fixed-income issuance, including convertible bonds and preferred stock, to support its bitcoin acquisition strategy. The company also intends to adopt a new accounting rule in the first quarter that will allow it to measure the fair value of its bitcoin holdings, potentially reducing the impact of impairment charges on future earnings.

The launch of bitcoin ETFs and the growth of institutional-grade custody solutions have made Bitcoin more accessible for corporate treasuries. Liquidity concerns — once a major barrier — are being addressed through regulated exchanges and financial instruments that allow for both direct ownership and synthetic exposure to bitcoin.

Read more: How Blockchain Tech Can Streamline Treasury Operations

A New Paradigm for Corporate Finance

Companies are starting to view bitcoin not just as an investment, but as a leveraged financial asset that can be used strategically. Strategy has issued convertible debt and equity raises to finance its bitcoin purchases, essentially using its BTC holdings as collateral for capital market activities. This model could inspire new approaches to corporate financing and capital allocation, particularly for firms seeking alternative treasury strategies in an era of rising interest rates.

“Many treasurers are thinking, ‘Well, how can I extract that last ounce of juice from my financial ecosystem?’” Ambrish Bansal, global head of liquidity and cash concentration products for the Citi Treasury and Trade Solutions business, told PYMNTS.

Regulatory uncertainty has been a key concern for businesses considering bitcoin adoption. However, in 2025, clearer accounting rules and the Trump administration’s progress toward enacting proposed regulatory frameworks for cryptocurrency regulation are giving CFOs more confidence in managing bitcoin’s financial reporting and compliance risks.

Bitcoin’s growing role in corporate treasuries reflects a fundamental reassessment of how businesses store value, manage inflation risk and allocate capital.

As bitcoin matures, more firms may follow Strategy’s lead — albeit in measured, diversified ways. Rather than going all-in on bitcoin, CFOs may choose a hybrid treasury model, maintaining a mix of cash, fixed-income assets and bitcoin to balance liquidity needs with long-term appreciation potential.

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