"The pain of cash melting in corporate hands has given rise to a new and strategic class of public company: a bitcoin treasury company. These aren't just firms that accept cryptocurrency; they are corporations that have fundamentally reengineered their financial core. They have made the strategic decision to convert their primary treasury reserve asset from U.S. dollars into bitcoin. This strategy was forged not in a niche online community, but in a corporate boardroom facing an urgent paradox."
"In the summer of 2020, the successful tech firm was staring down the barrel of a problem created by its own triumphs - half a billion dollars in cash. In a sane world, this would be a sign of stability. In ours, it was a ticking time bomb. The financial landscape had become a trap. "Safe" investments like government bonds had become a joke, with interest rates so low Strategy was essentially paying for the privilege of losing money to inflation."
Corporate cash reserves have become liabilities as low interest rates and inflation erode dollar value. Many public companies have shifted primary treasury assets from U.S. dollars into bitcoin, creating a new class of bitcoin treasury companies. Executives see government bonds and other "safe" instruments as effectively losing money to inflation. Strategy's CEO Michael Saylor analyzed available assets and determined bitcoin was structurally immune to inflation, prompting a large conversion of cash into bitcoin. Firms across industries, including exchanges and miners, have followed suit, reengineering their financial core to protect capital against currency depreciation.
Read at Bitcoin Magazine
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