News and Analytics

0

River Predicts 10% of US Companies Will Invest in Bitcoin in 18 Months

Sep 7, 2024
  1. US Companies' Investment Forecast
  2. Microstrategy’s Model
  3. US Economic Recession Risk

US-based Bitcoin technology and financial services firm, River, forecasts that 10% of US companies will allocate 1.5% of their treasury reserves, roughly $10.35 billion, to Bitcoin within the next 18 months. This prediction comes as concerns rise about a potential US economic recession by July 2025.

US Companies' Investment Forecast

River’s analysts argue that traditional corporate treasury strategies, reliant on cash and short-term equivalents, often fail to outpace inflation, leading to a decrease in value. They point to Apple’s $15 billion loss in treasury holdings as an example of this inflationary erosion.

Microstrategy’s Model

The report highlights Microstrategy’s corporate treasury strategy, which involves converting a substantial portion of its assets to Bitcoin. In June, the Michael Saylor-led company completed an $800 million debt sale, using the proceeds to purchase an additional 11,931 BTC.

US Economic Recession Risk

According to forecasts, there is a 52.29% chance that the US economy will enter a recession by July 2025. These concerns strengthen the arguments for corporations to diversify their treasury reserves into cryptocurrencies like Bitcoin to protect their assets.

Predictions and initiatives, such as those by Microstrategy, reinforce River's expectations of substantial growth in Bitcoin investments by US companies within the next 18 months.

Comments

Latest analytics

Key Features of...

Key Features of Upbit Exchange and Its Impact on the Cryptocurrency...

Rari Capital and...

Rari Capital and its Role in Developing Decentralized Finance

Show more

Latest Dapp Articles

Show more

You may also like