U.S. Companies Expected to Invest $10.3B in Bitcoin by 2025

In a significant development for the cryptocurrency industry, a recent report by River predicts that around 10% of American businesses will allocate 15% of their treasury reserves to Bitcoin (BTC) over the next 18 months. This move is expected to result in a staggering $10.3 billion investment in BTC by U.S. companies.

The primary driver behind this trend is the desire to hedge against inflation. The report highlights that even tech giants like Apple have lost $15 billion over the past decade due to the declining value of cash reserve. In contrast, companies that have already adopted Bitcoin, such as MicroStrategy, have seen significant success with their corporate treasury strategies.

MicroStrategy, led by Michael Saylor, currently holds 226,500 BTC. In June, the company raised $800 million through bonds issued at a 2.25% interest rate with a 2032 maturity to purchase an additional 11,931 BTC. This move demonstrates the growing confidence in Bitcoin as a long-term investment for corporations.

The increasing adoption of Bitcoin by U.S. companies is expected to have a positive impact on the cryptocurrency's price and overall legitimacy. As more institutional investors enter the market, Bitcoin's volatility may decrease, making it a more attractive option for corporate treasury management.

However, some experts caution that the volatility of Bitcoin may still pose challenges for widespread corporate adoption. Additionally, the creation of a strategic Bitcoin reserve by the U.S. government, as proposed by Senator Cynthia Lummis, remains a speculative idea with potential drawbacks.

Despite these concerns, the trend of U.S. companies investing in Bitcoin is expected to continue, with the potential to reshape the financial landscape in the coming years.