Why are companies buying Bitcoin? The corporate treasury explained.

The strategy the wealthy have always used

There's a well-established pattern in traditional finance: wealthy individuals and well-run companies don't sit on cash. Cash loses value to inflation. Instead, they put capital to work in real estate, equities, gold, or other assets that hold purchasing power over time.

In 2020, a small business intelligence company called MicroStrategy applied that same logic to Bitcoin. Its CEO, Michael Saylor, described the company's $500 million cash reserve as "a melting ice cube." Rather than watch it erode, he converted it to Bitcoin.

At the time, it looked eccentric. Today, more than 100 public companies hold Bitcoin on their balance sheets — and the strategy has a name: the Bitcoin corporate treasury.

What is a corporate treasury?

Before understanding why companies buy Bitcoin, it helps to understand what a treasury actually is.

A corporate treasury is the pool of capital a company keeps for operational liquidity, future investment, and financial stability. For most companies, it sits in cash, short-term government bonds, or money market funds — safe, boring, and slowly losing value to inflation.

The problem with this approach has become harder to ignore. In an environment of persistent government debt expansion, currency debasement, and low bond yields, holding large amounts of cash feels less like prudence and more like a slow leak.

That's the problem Bitcoin treasury companies believe they're solving.

Why Bitcoin, specifically?

Companies that adopt Bitcoin as a treasury asset typically cite a few core reasons.

Cash loses purchasing power. Inflation erodes the real value of money over time. A company sitting on $500 million in cash that earns 4% on a short-term bond while inflation runs at 5% is effectively losing ground. 

Bitcoin's fixed supply of 21 million coins makes it structurally resistant to that kind of debasement — no government or central bank can print more of it.

It offers asymmetric upside. Gold is stable but has a ceiling. Stocks are productive but correlated to the business cycle. Bitcoin offers something different: a long-term appreciation profile that has historically outpaced most asset classes, driven by growing adoption and a supply that gets tighter every four years through the halving.

It's highly liquid. Unlike real estate or private equity, Bitcoin trades 24/7 on global markets. A company can convert its position to cash quickly if needed — something that can't be said for most alternative reserve assets.

It signals conviction. In the technology and finance sectors in particular, holding Bitcoin has become a way for companies to signal alignment with the digital asset ecosystem — attracting a specific class of investors and talent.

How the strategy works in practice

Strategy (formerly MicroStrategy) pioneered the model and remains by far the largest corporate holder, with over 717,000 BTC as of February 2026 — nearly two-thirds of all Bitcoin held by public companies combined.

The basic playbook is straightforward:

1. Identify excess capital — funds beyond what the business needs for operations.

2. Allocate some or all of that capital to Bitcoin instead of cash or bonds.

3. Hold for the long term, treating Bitcoin as a reserve asset rather than a trading position.

Some companies go further, using debt and equity raises to fund additional Bitcoin purchases — effectively leveraging capital markets to build a larger position. That approach amplifies both the potential upside and the risk.

Others take a more conservative route: a small allocation of 1–5% of treasury reserves as a diversification move, without changing the core business.

Public companies collectively now hold roughly 1.13 million BTC, according to BitcoinTreasuries.net — about 5.4% of Bitcoin's total supply.

Who else is doing it?

Strategy may dominate the headlines, but the strategy has spread well beyond one company. A few notable examples:

• MARA Holdings — one of the largest Bitcoin miners in North America- holds approximately 50,000 BTC, much of it self-mined.

• Metaplanet — a Japanese public company that has become the largest corporate Bitcoin holder in Asia, earning the nickname "Asia's MicroStrategy."

• Block (formerly Square) — founded by Jack Dorsey, holds Bitcoin as both a reserve asset and a reflection of the company's mission to democratize finance.

• Tesla — purchased $1.5 billion of Bitcoin in 2021, though it has since reduced its position.

Since October 2025, 21 new companies across South Korea, the US, China, Japan, and Canada have added Bitcoin to their balance sheets — a signal that adoption is still broadening, not narrowing.

The risks

A corporate Bitcoin treasury isn't a risk-free strategy. The risks are worth understanding clearly.

Volatility affects the balance sheet. Bitcoin can move rapidly in a week. For a public company, that shows up in financial statements. 

Under current accounting rules, unrealized losses must be recorded when Bitcoin's price falls, but unrealized gains cannot be recognized until the asset is sold. That asymmetry can distort reported results.

Leverage amplifies everything. Companies that borrow to buy Bitcoin take on additional risk. If Bitcoin's price falls sharply and operational cash flows are insufficient, they may be forced to sell at a loss to service debt.

What individuals can learn from this

The corporate treasury playbook was built on a logic that applies equally to individual investors.

The core insight is this: capital that sits idle in cash gradually loses its purchasing power. The wealthy — and now an increasing number of corporations — respond by converting that idle capital into assets that hold or grow their value over time.

For individuals, the same question applies. Bitcoin held in a wallet earns nothing and sits idle. But held on a platform like Nexo, it can be put to work:

• Earn interest on your Bitcoin through Flexible and Fixed-term Savings, paid daily.

• Borrow against your holdings via the Nexo Credit Line, accessing liquidity without selling — the same "don't sell the asset" logic that drives the corporate treasury strategy.

• Buy and trade Bitcoin alongside 100+ other digital assets, 24/7.

The wealthy don't sell their best assets to cover expenses. They borrow against them. That principle is now accessible to anyone, not just CFOs.

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Frequently asked questions

1. What is a Bitcoin corporate treasury?

A Bitcoin corporate treasury is when a company holds Bitcoin as part of its financial reserves instead of keeping all excess capital in cash or bonds. The goal is typically to preserve purchasing power, diversify the balance sheet, and gain long-term exposure to Bitcoin's appreciation potential.

2. Why do companies buy Bitcoin for their treasury?

The main drivers are inflation hedging (Bitcoin's fixed supply resists debasement), long-term appreciation potential, 24/7 liquidity, and portfolio diversification. Some companies also align their treasury with their business strategy or investor base.

3. Which company holds the most Bitcoin? 

Strategy (formerly MicroStrategy) is by far the largest corporate Bitcoin holder, with over 717,000 BTC as of February 2026 — roughly two-thirds of all Bitcoin held by public companies globally.

4. How many companies hold Bitcoin on their balance sheet?

More than 100 public companies now hold Bitcoin as a treasury asset, according to BitcoinTreasuries.net. Together they hold approximately 1.13 million BTC, or about 5.4% of the total supply.

5. Is a Bitcoin treasury strategy risky?

Bitcoin's volatility can significantly impact financial statements, especially for companies using leverage. The strategy works best with a long time horizon, clear governance, and no dependency on Bitcoin's price to service debt or fund operations.

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