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Bitcoin

A new report from River—a Bitcoin technology and financial services firm—forecasted that some companies in the United States will increase their exposure to Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">BTC</a>) over the next 18 months.
According to the report, an estimated 10% of US-based companies will likely convert 1.5% of their treasury reserves, or approximately $10.35 billion, to Bitcoin over the next year and a half.
<figure><img alt="US companies forecast to buy $10.3B in Bitcoin over next 18 months — Report" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c883-5e52-7a2a-8836-66e44f231446">
 <figcaption style="text-align: center;">
 Projections of corporate Bitcoin holdings by 2026. Source: River
 </figcaption>
</figure>
Analysts for River also pointed out that traditional corporate treasury strategies rely on cash and other short-term cash equivalents, which are poor stores of value. River’s analysis asserted:
<blockquote>
 "These investments can generate modest returns near the federal funds rate—currently over 5%. However, even these short-term investments often fail to outperform inflation, diminishing the value of a treasury."
</blockquote>
The report noted that this inflationary erosion also caused Apple—now a trillion-dollar corporation—to lose $15 billion of its treasury holdings over the last 10 years.
Related:<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/first-leveraged-microstrategy-etf-launches-us" rel="noopener noreferrer nofollow" target="null" text="null" title="null"> First leveraged MicroStrategy ETF launches in the US</a>
<h2 id="microstrategy-s-corporate-treasury-strategy">MicroStrategy’s corporate treasury strategy</h2>
The analyst’s forecast points to the growing adoption of a corporate treasury strategy popularized by MicroStrategy founder Michael Saylor.
In June 2024, MicroStrategy completed an additional<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/microstrategy-800-million-convertible-note-offering-bitcoin" rel="noopener noreferrer nofollow" target="null" text="null" title="null"> $800 million debt sale</a> of senior convertible notes at 2.25%, with a maturation date of 2032. MicroStrategy used the funds from the corporate debt to purchase an additional 11,931 BTC.
Saylor has characterized Bitcoin as an asset that guarantees “<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-offers-economic-immortality-will-reach-10m-per-coin-michael-saylor" rel="noopener noreferrer nofollow" target="null" text="null" title="null">economic immortality</a>” to corporations and businesses due to its capped supply and a lack of counterparty risk inherent in other stores of value, such as real estate or equities.
<figure><img alt="US companies forecast to buy $10.3B in Bitcoin over next 18 months — Report" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c884-4fdf-7114-8f95-478e161d30b1">
 <figcaption style="text-align: center;">
 A chart showcasing MicroStrategy’s BTC accumulation. Source: River
 </figcaption>
</figure>
MicroStrategy’s second-quarter earnings report revealed that it currently<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/microstrategy-q2-earnings-reveals-bitcoin-stockpile-14-7-billion" rel="noopener noreferrer nofollow" target="null" text="null" title="null"> holds 226,500 BTC</a>, valued at approximately $14.7 billion at the time.
<h3 id="outperforming-warren-buffett-a-new-era-of-corporate-finance">Outperforming Warren Buffett—a new era of corporate finance?</h3>
Saylor’s BTC treasury strategy caused MicroStrategy to<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/4-years-in-micro-strategy-bitcoin-gamble-warren-buffett-warning" rel="noopener noreferrer nofollow" target="null" text="null" title="null"> significantly outperform</a> Warren Buffett’s investment company, Berkshire Hathaway. Since the Bitcoin treasury strategy was adopted, MicroStrategy has risen by over 1,000%. Comparatively, shares of Berkshire Hathaway rose by 104.75% during the same period.
Buffett has declined to add Bitcoin to his portfolio or recommend the store-of-value as a hedge against fiat inflation.
Magazine:<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-etf-coinbase-honeypot-hackers-government-trezor-ceo/" rel="noopener noreferrer nofollow" target="null" text="null" title="null"> Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments: Trezor CEO</a>

US companies forecast to buy $10.3B in Bitcoin over next 18 months — Report

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