US Companies Projected to Acquire $10.3 Billion in Bitcoin Over the Next 18 Months — Analysis

A recent analysis from River, a firm specializing in Bitcoin technology and financial services, indicates that a number of companies in the United States may significantly increase their Bitcoin (BTC) holdings in the upcoming 18 months.

The analysis estimates that about 10% of US-based corporations are expected to allocate around 1.5% of their treasury reserves, equating to roughly $10.35 billion, into Bitcoin over the following year and a half.

The report also emphasizes that traditional corporate treasury approaches often rely on cash or short-term cash equivalents, which tend to be inadequate stores of value. Analysts at River stated:

“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.”

It was highlighted that this decline in value due to inflation has led major corporations, like Apple, to lose approximately $15 billion of their treasury assets over the past decade.

MicroStrategy’s Treasury Approach

The analysts’ forecast also suggests a growing trend influenced by the corporate treasury strategy introduced by Michael Saylor, the founder of MicroStrategy.

In June 2024, MicroStrategy executed an additional $800 million debt offering of senior convertible notes at an interest rate of 2.25%, maturing in 2032. The capital raised was subsequently used to acquire an additional 11,931 BTC.

Saylor has described Bitcoin as providing “economic immortality” to businesses, citing its fixed supply and lack of counterparty risk, in contrast to conventional stores of value such as real estate or stocks.

According to MicroStrategy’s second-quarter earnings report, the company currently holds 226,500 BTC, valued at about $14.7 billion at that time.

Outperforming Traditional Investment Strategies—A Shift in Corporate Finance?

Saylor’s approach to Bitcoin treasury management has enabled MicroStrategy to outperform Warren Buffett’s investment firm, Berkshire Hathaway. Since adopting the Bitcoin strategy, MicroStrategy’s value has surged by over 1,000%, while Berkshire Hathaway’s shares increased by only 104.75% during the same timeframe.

Buffett has remained steadfast in his refusal to include Bitcoin in his investment portfolio or recognize it as a viable hedge against inflation.