Why are Companies Eager to Create Bitcoin and Ethereum Treasuries?
Corporations, LLPs, and companies have joined the crypto treasury rush in recent times, creating approximately $500 billion worth of treasuries in under a year. Some have been buying Bitcoin for its value, whereas others are attracted to the technology.
In this article, we will focus on six major reasons why companies have been establishing treasuries at a record pace in the last year.
Below is the list of all Bitcoin Treasuries for your ready reckoning.
Global Geoeconomic Concerns
Bitcoin and Ethereum are decoupled from the traditional economy, which makes them safe bets in times of global uncertainty, such as trade wars, sanctions, war, and other diplomatic incidents.
Here’s a quote on the same from CNBC.
Further, unlike traditional bonds and stocks, cryptocurrencies in general are decentralized, with the highest levels of such decentralization seen in Bitcoin and Ethereum. In case of any forced government or centralized compliance, nobody can ban or shut down cryptocurrencies, making them far safer than traditional financial instruments.
Another reason why crypto demand has been surging in the global markets is due to the excessive printing of the US Dollar and the increase in the US Government’s debt. In the event that the debt becomes impossible to service, the government has no option but to print more dollars, which will eventually drive down its value.
Bitcoin vs Gold: The End of Gold’s Reign for the Next Generation?
Past Performance
In the past, both Bitcoin and Ethereum have outperformed the traditional stock and bond markets. Corporations are attracted to them because of cryptocurrencies’ ability to give better returns than traditional markets.
Bitcoin vs Gold vs Stocks vs Bonds
— Thomas Fahrer (@thomas_fahrer) December 8, 2024
Year to date investment returns.
BTC +125%
QQQ +31%
S&P 500 +28%
Gold +28%
Vanguard Total World Bond ETF +1.7%pic.twitter.com/pAC1EYU90X
Over the last 14 years of its existence, Bitcoin has outperformed every major asset in the market, including stocks, bonds, gold, silver, and most commodities. In the coming decades, Bitcoin could find itself among the top three assets in the world by market value.
Asset Diversification
Crypto treasuries offer better asset diversification than stocks, bonds, gold, and other financial instruments.
Digital Asset Treasury (DAT): Why It Might Be the Next Big Crypto Narrative?
It is also the reason why Grayscale, one of the world’s largest digital asset managers, has a highly diversified portfolio of crypto investments, with Bitcoin and Ethereum leading the pack.
As a result, multiple Digital Asset Treasuries have emerged after the initial success of Bitcoin and Ethereum Treasuries.
Bitcoin commands the largest asset pool among them, with more than 90% of the total value in treasuries. Ethereum has a share of around 5%, and the remaining 5% is shared among other cryptocurrency treasuries.
Decentralized Control
Cryptocurrencies can be bought, sold, and stored in a decentralized manner without the interference of governments, regulators, or even service provider companies. Furthermore, the transfer of assets from one wallet to another can be done instantly, anywhere in the world.
This allows companies to have greater control over their assets and forget about government or any other type of confiscation.
Here’s one case about a family from Michigan where authorities seized their business without due process. Later, the confiscation was ruled illegal by the courts.
Carol hinders owned a
— Cher (@cher) January 24, 2015
Restaurant for 37 yrs1Day IRS took ALL HER
W/Out charging her with a crime
Its called,
Civil asset forfeiture
Technologically Superior to Gold and Other Assets
Bitcoin is far superior to any other global asset like Gold, Silver, or Platinum. The superiority stems from its decentralized technology, which enables anonymous ownership, instant transfers, censorship resistance, and the freedom to move assets without drawing significant attention.
Similar aspects are not available for Gold, which needs to be securely transported from one place to another, has a very high risk of physical theft, and costs too much to transfer.
Expectations of High Demand in the Future
In long-term corporate strategies, assets are bought only when they have a very good long-term future. Acquisitions are carefully planned, executed, and the value appreciation is estimated before any investment is made. All of these take place only when it is highly certain that the price of the asset will appreciate.
In the case of Bitcoin, the price is expected to surpass $3 million by 2050, prompting companies to establish their own independent Bitcoin Treasuries. Even when they are unable to do so for any reason, such as in the case of Goldman Sachs, they turn to Bitcoin ETFs.
— Julian Fahrer (@Julian__Fahrer) February 11, 2025
NEW: Goldman Sachs has $2.3 billion in Bitcoin ETF exposure, per 13F SEC filings today.
– IBIT: $1.9b
– FBTC: $374m
– GBTC: $3.6m
Up from $710m in Q4 last yearpic.twitter.com/8hynRZdEL0
Why are Companies Eager to Create Bitcoin and Ethereum Treasuries?
Corporations, LLPs, and companies have joined the crypto treasury rush in recent times, creating approximately $500 billion worth of treasuries in under a year. Some have been buying Bitcoin for its value, whereas others are attracted to the technology.
In this article, we will focus on six major reasons why companies have been establishing treasuries at a record pace in the last year.
Below is the list of all Bitcoin Treasuries for your ready reckoning.
Global Geoeconomic Concerns
Bitcoin and Ethereum are decoupled from the traditional economy, which makes them safe bets in times of global uncertainty, such as trade wars, sanctions, war, and other diplomatic incidents.
Here’s a quote on the same from CNBC.
Further, unlike traditional bonds and stocks, cryptocurrencies in general are decentralized, with the highest levels of such decentralization seen in Bitcoin and Ethereum. In case of any forced government or centralized compliance, nobody can ban or shut down cryptocurrencies, making them far safer than traditional financial instruments.
Another reason why crypto demand has been surging in the global markets is due to the excessive printing of the US Dollar and the increase in the US Government’s debt. In the event that the debt becomes impossible to service, the government has no option but to print more dollars, which will eventually drive down its value.
Bitcoin vs Gold: The End of Gold’s Reign for the Next Generation?
Past Performance
In the past, both Bitcoin and Ethereum have outperformed the traditional stock and bond markets. Corporations are attracted to them because of cryptocurrencies’ ability to give better returns than traditional markets.
Bitcoin vs Gold vs Stocks vs Bonds
— Thomas Fahrer (@thomas_fahrer) December 8, 2024
Year to date investment returns.
BTC +125%
QQQ +31%
S&P 500 +28%
Gold +28%
Vanguard Total World Bond ETF +1.7%
Over the last 14 years of its existence, Bitcoin has outperformed every major asset in the market, including stocks, bonds, gold, silver, and most commodities. In the coming decades, Bitcoin could find itself among the top three assets in the world by market value.
Asset Diversification
Crypto treasuries offer better asset diversification than stocks, bonds, gold, and other financial instruments.
Digital Asset Treasury (DAT): Why It Might Be the Next Big Crypto Narrative?
It is also the reason why Grayscale, one of the world’s largest digital asset managers, has a highly diversified portfolio of crypto investments, with Bitcoin and Ethereum leading the pack.
As a result, multiple Digital Asset Treasuries have emerged after the initial success of Bitcoin and Ethereum Treasuries.
Bitcoin commands the largest asset pool among them, with more than 90% of the total value in treasuries. Ethereum has a share of around 5%, and the remaining 5% is shared among other cryptocurrency treasuries.
Decentralized Control
Cryptocurrencies can be bought, sold, and stored in a decentralized manner without the interference of governments, regulators, or even service provider companies. Furthermore, the transfer of assets from one wallet to another can be done instantly, anywhere in the world.
This allows companies to have greater control over their assets and forget about government or any other type of confiscation.
Here’s one case about a family from Michigan where authorities seized their business without due process. Later, the confiscation was ruled illegal by the courts.
Carol hinders owned a
— Cher (@cher) January 24, 2015
Restaurant for 37 yrs
Its called,
Civil asset forfeiture
Technologically Superior to Gold and Other Assets
Bitcoin is far superior to any other global asset like Gold, Silver, or Platinum. The superiority stems from its decentralized technology, which enables anonymous ownership, instant transfers, censorship resistance, and the freedom to move assets without drawing significant attention.
Similar aspects are not available for Gold, which needs to be securely transported from one place to another, has a very high risk of physical theft, and costs too much to transfer.
Expectations of High Demand in the Future
In long-term corporate strategies, assets are bought only when they have a very good long-term future. Acquisitions are carefully planned, executed, and the value appreciation is estimated before any investment is made. All of these take place only when it is highly certain that the price of the asset will appreciate.
In the case of Bitcoin, the price is expected to surpass $3 million by 2050, prompting companies to establish their own independent Bitcoin Treasuries. Even when they are unable to do so for any reason, such as in the case of Goldman Sachs, they turn to Bitcoin ETFs.
— Julian Fahrer (@Julian__Fahrer) February 11, 2025
– IBIT: $1.9b
– FBTC: $374m
– GBTC: $3.6m
Up from $710m in Q4 last year