A new report from River forecasts that US companies plan to significantly increase their investments in Bitcoin over the next 18 months.
Bitcoin Investment Forecasts
According to the River report, an estimated 10% of US companies will convert 1.5% of their treasury reserves, approximately $10.35 billion, to Bitcoin over the next year and a half. River analysts note that traditional corporate treasury strategies relying on cash and other short-term equivalents are poor stores of value.
MicroStrategy's Strategy
The analyst’s forecast points to the growing adoption of a corporate treasury strategy popularized by MicroStrategy founder Michael Saylor. In June 2024, MicroStrategy completed an $800 million debt sale of senior convertible notes to purchase an additional 11,931 BTC. Saylor has characterized Bitcoin as an asset that guarantees 'economic immortality' due to its capped supply and lack of counterparty risk.
Comparison with Warren Buffett
Saylor's BTC treasury strategy has caused MicroStrategy to significantly outperform Warren Buffett's investment firm, Berkshire Hathaway. Since adopting the BTC strategy, MicroStrategy's shares have risen over 1,000%, compared to Berkshire Hathaway's 104.75% rise over the same period.
In conclusion, more US companies are considering Bitcoin as a key part of their investment strategies, potentially reshaping corporate finance management approaches.
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