U.S. Corporations Anticipated to Purchase $10.3 Billion in Bitcoin Over the Subsequent 18 Months

A latest report from Bitcoin infrastructure firm River forecasts that roughly 10% of U.S. firms will convert 1.5% of their money reserves, totaling an estimated $10.35 billion, into Bitcoin throughout the subsequent 18 months. The report highlights the restrictions of conventional company treasury methods, which regularly depend on holding money or short-term equivalents—belongings that incessantly fail to outpace inflation, ensuing within the gradual erosion of reserves’ worth.

Since 2020, corporations allocating 3% of their reserves to Bitcoin have demonstrated a stronger capability to mitigate inflationary pressures. The report additional underscores the case of MicroStrategy, whose CEO Michael Saylor has seen the corporate’s market worth soar by over 1,000%, considerably outperforming Warren Buffett’s Berkshire Hathaway, which grew by 104.75% throughout the identical interval.

Saylor views Bitcoin as a company “financial immortality” asset, a stark distinction to Buffett’s steadfast refusal to include the cryptocurrency into his funding portfolio. Whereas Saylor’s technique seems to sign a shift in how corporations would possibly safeguard worth in an inflationary atmosphere, Buffett’s extra conservative method raises questions concerning the long-term viability of Bitcoin as a major company reserve asset.