Clinical-stage biopharmaceutical company Hoth Therapeutics has announced plans to allocate up to $1 million to Bitcoin, reflecting a growing trend among U.S. businesses to use cryptocurrency as a store of value and an inflation hedge.
Hoth's Bitcoin Allocation
The board of directors at Hoth Therapeutics approved the move to invest in Bitcoin amid increasing interest in the cryptocurrency following Donald Trump's reelection as president. This move aligns with recent comments from U.S. Senator Cynthia Lummis, suggesting a conversion of gold reserves into Bitcoin. Hoth CEO Robb Knie emphasized that market support and the approval of Bitcoin exchange-traded funds (ETFs) were key factors in this decision.
Lummis' Push for BTC Reserve
Senator Cynthia Lummis has advocated for the conversion of over 8,000 tonnes of U.S. gold reserves into BTC to establish a crypto strategic reserve. She stressed that the U.S. government's balance sheet would remain 'neutral' through such conversions instead of purchasing BTC at market rates. Former presidential candidate Robert F. Kennedy Jr. also endorsed the asset, stating his 'full commitment' to Bitcoin.
MicroStrategy's Proposal to Microsoft
Michael Saylor, chairman of MicroStrategy, has offered a three-minute pitch to Microsoft's board of directors on the benefits of investing in Bitcoin. He highlighted that an activist had initiated this proposal for consideration by Microsoft's CEO.
The adoption of Bitcoin as a strategic reserve asset is gaining traction among organizations seeking to protect their assets from inflation, as demonstrated by companies like Hoth Therapeutics and supportive political initiatives bolstering the cryptocurrency’s role in modern finance.
