River predicts U.S. firms will invest $10.3B in Bitcoin, following MicroStrategy’s approach to hedge against inflation and protect reserves.
10% of U.S. companies are expected to allocate 15% of treasury reserves to Bitcoin, shifting away from traditional assets due to inflation.
Apple lost $15B from inflation over the last decade, a loss River claims could’ve been avoided by incorporating Bitcoin into its strategy.
Over the next 18 months, American corporations are anticipated to invest $10.3 billion in Bitcoin, according to River, a startup focused on Bitcoin technology. The Bitcoin accumulation approach—which has been likened to MicroStrategy—will be adopted by more American businesses. This is a turning point for companies searching for alternate treasury solutions in the rising inflation and shaky economic situations.
https://twitter.com/BigBreakingWire/status/1832125222893289659 Bitcoin as a Superior Store of Value
According to the analysis, Bitcoin can be an even better store of value. A shift in the organization's financial strategy is indicated by the report's 10% of American corporations wishing to convert 15% of their treasury reserves to Bitcoin. As short-term investments and conventional cash have not been able to keep up with inflation, this activity is anticipated to perform better.
Furthermore, River's analysis highlights the difficulties encountered by companies that depend on conventional treasury techniques. For instance, during the past ten years, inflation has caused Apple to lose $15 billion from its reserves.
The corporation could have prevented this loss if it had included Bitcoin in its treasury plan. Furthermore, Bitcoin gives companies a means to safeguard their treasury assets by acting as an inflation hedge.
MicroStrategy’s Bitcoin Wins Inspire Corporate Shift
MicroStrategy CEO Michael Saylor argues that organizations should adopt Bitcoin as a valuable tool. Because of its Bitcoin bets, it is outperforming big traditional investment Berkshire Hathaway.
In contrast to Berkshire Hathaway's less remarkable gain of 104.75% during the same period, MicroStrategy's stock has increased by more than 1,000% since utilizing Bitcoin as a treasury reserve.
Thus, River anticipates that American companies will take a cue from Saylor, particularly given the way inflation is eating away at the value of conventional assets. Moreover, the restricted availability of Bitcoin and its lack of counterparty risk make it a viable substitute for corporate treasuries. As more companies utilize cryptocurrency, it might become a more recognized financial instrument, which would boost its long-term viability.
The post U.S. Corporations to Invest $10.3B in Bitcoin, Following MicroStrategy’s Success appeared first on Crypto News Land.
