US Companies to Increase Bitcoin Holdings by 10% in Next 18 Months, Says River

River forecasts a major shift in corporate treasury strategies, predicting that 10% of U.S. companies will allocate 1.5% of their cash reserves to Bitcoin in the next 18 months, totaling over $10 billion. This follows a 587% surge in Bitcoin holdings by U.S. companies since 2020.

River Forecasts Surge in US Company Bitcoin Holdings

In a significant prediction for the future of corporate treasury management, Bitcoin technology company River has projected that U.S. companies will dramatically increase their holdings of Bitcoin over the next 18 months. According to a recent report by River, 10% of companies are expected to allocate 1.5% of their cash reserves—an estimated $10.35 billion—to the cryptocurrency. This marks a pivotal shift in how businesses manage and protect their assets, with Bitcoin emerging as a hedge against traditional cash and short-term investments.

The Rise of Corporate Bitcoin Holdings

As of August 2024, U.S. companies collectively hold 683,332 BTC, representing 3.3% of the total Bitcoin supply. This figure marks an astonishing 587% increase since June 2020 and a 30% rise over the last year alone. Additionally, corporate Bitcoin holdings have surged 40% between September 2023 and August 2024, signaling growing confidence in Bitcoin’s potential as a stable, long-term asset.

MicroStrategy Leading the Charge

At the forefront of this trend is MicroStrategy, a company that has firmly established itself as a major institutional player in Bitcoin investment. In June 2024, the company raised $800 million through a debt sale, using the proceeds to purchase 11,931 BTC. This brought its total Bitcoin holdings to a staggering 226,500 BTC, worth approximately $14.7 billion.

MicroStrategy founder Michael Saylor has long touted the benefits of Bitcoin as a corporate treasury asset, particularly due to its supply-capped nature and low counterparty risk. Saylor believes that Bitcoin offers a more reliable store of value compared to traditional cash reserves, which are vulnerable to inflation and other market risks.

Looking Ahead: Bitcoin’s Corporate Future

Despite Bitcoin’s volatility in 2024—with the price hitting a high of $73,000 in January before falling to $53,800—River remains confident that corporate interest in the digital currency will continue to grow. The company suggests that Bitcoin’s limited supply and its ability to outshine conventional assets will make it an increasingly attractive option for businesses looking to safeguard their reserves.

As more U.S. companies follow MicroStrategy’s lead, Bitcoin could become a staple of corporate finance strategies in the years to come.

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