In recent years, Bitcoin has evolved from a speculative asset to a strategic component of corporate treasury management. Companies such as MicroStrategy, Tesla, and Square have led the charge in integrating Bitcoin into their financial strategies, leveraging it to hedge against inflation and diversify their portfolios.
This guide delves into why businesses are incorporating Bitcoin into their corporate treasuries, its benefits, and the practical steps involved in doing so.
Traditionally, corporate treasuries have focused on managing cash and short-term assets to ensure liquidity and cover liabilities. However, rising inflation concerns, shifting macroeconomic dynamics, and lower returns on traditional investments have prompted companies to explore alternatives like Bitcoin.
Here’s why businesses are considering Bitcoin as part of their treasury strategy:
1. Inflation Hedge:
Bitcoin’s fixed supply of 21 million coins positions it as a potential safeguard against inflation. As central banks engage in expansive monetary policies, businesses holding Bitcoin can protect their purchasing power over time.
2. Diversification of Assets:
Bitcoin offers diversification benefits to a corporate portfolio. Allocating 1-5% of a treasury to Bitcoin introduces exposure to an emerging asset class, which can enhance overall portfolio efficiency and potentially reduce risk.
3. Efficient Payment Solutions:
Bitcoin facilitates the fast and low-cost transfer of large sums, bypassing traditional banking systems. This peer-to-peer transaction capability enables secure and cost-effective transfers, ideal for companies needing to move significant amounts of capital.
4. Brand Visibility and Innovation:
Although not a primary motivator, holding Bitcoin can bolster a company’s reputation as an innovative and forward-thinking organization. This can be particularly beneficial for businesses looking to align with the cutting-edge of financial technology.
5. Supporting the Bitcoin Ecosystem:
Companies like Tesla, by holding and accepting Bitcoin for payments, demonstrate a commitment to the cryptocurrency’s long-term potential. This adoption reflects a broader trend of tech-driven businesses integrating cryptocurrency into their operations.
El Salvador
El Salvador made history in 2021 as the first country to officially adopt Bitcoin as legal tender. This bold move has reshaped the country’s financial infrastructure and set a global precedent. As of January 2025, El Salvador holds approximately 6,000 Bitcoins, valued at around $570 million, a significant increase from their initial investment.
Despite facing pressure from international institutions like the International Monetary Fund (IMF), El Salvador continues to prioritize Bitcoin as a key component of its economic strategy. In early 2025, the country secured a $1.4 billion loan agreement with the IMF, which prompted the government to make Bitcoin acceptance voluntary for businesses, rather than mandatory. Nonetheless, El Salvador remains resolute in its belief in Bitcoin’s future, which may influence other countries and corporations to explore similar strategies.
Vancouver
In a more localized example, Vancouver is positioning itself as a Bitcoin-friendly city. The city council recently passed a motion aimed at establishing Vancouver as a “Bitcoin-friendly” hub, with the mayor stating that this move would position the city for success in the next century. This policy could encourage more Bitcoin startups and enterprises to set up operations in the area.
Miami
Miami has embraced Bitcoin with open arms, positioning itself as a pro-cryptocurrency city. The mayor, Francis Suarez, has publicly stated that he receives part of his salary in Bitcoin, underscoring the city’s commitment to cryptocurrency. Miami also hosts the annual Bitcoin Conference, which draws global leaders and investors from the crypto and blockchain industries, further cementing its position as a Bitcoin hub in the U.S.
MicroStrategy
Under the leadership of Michael Saylor, MicroStrategy became the first publicly traded company to make Bitcoin its primary reserve asset. As of December 2024, MicroStrategy holds over $47 billion in Bitcoin, which it uses as a hedge against inflation and as a strategic capital management tool.
Tesla
Tesla made a bold move in February 2021 by adding Bitcoin to its corporate treasury. As of December 2024, Tesla’s Bitcoin holdings are valued at approximately $1.04 billion USD. Tesla has also embraced Bitcoin as a payment method for vehicles, showcasing its versatility as both a store of value and a practical corporate asset.
WonderFi
In Q3 2024, WonderFi Technologies (TSX: WNDR) launched a corporate treasury purchasing program. As of December 2024, the company’s treasury holds Bitcoin with an average cost basis of approximately USD $54,061 per coin. This disciplined approach to Bitcoin acquisition reflects WonderFi’s strategic long-term vision for digital assets.
For corporations ready to take the leap, here’s a step-by-step guide to acquiring and managing Bitcoin for your treasury.
1. Set Up a Business Account on a Trusted Platform
Choose a secure, regulated cryptocurrency platform optimized for business transactions, such as Coinsquare. Platforms like Coinsquare ensure compliance with legal frameworks while offering transparency and security for corporate users.
On Coinsquare, you’ll register as a business user, provide necessary verification documents, and fund your account with approximately $50,000 CAD (or the equivalent in your local currency).
2. Engage With a Wealth Director
Our Coinsquare Wealth desk is ideal for large-scale transactions to minimize market slippage. Instead of buying Bitcoin directly on a trading platform, corporate treasuries can benefit from better pricing and personalized service. Coinsquare's Wealth desk provides live quotes and streamlined purchasing processes for transactions above $50,000 CAD.
3. Understand Local Regulations
Each region has specific legal and tax implications for holding Bitcoin. El Salvador's government, for example, offers incentives for Bitcoin holders, while Vancouver’s motion aims to adopt Bitcoin reserves for the city. Make sure to check with local legal consultants to ensure compliance in your jurisdiction.
Bitcoin is now considered to be strategic asset for many corporations offering benefits for treasury operations from hedging inflation to enabling seamless cross-border transactions.
Key Takeaways:
For corporations ready to embrace Bitcoin, platforms like Coinsquare provide tailored solutions for businesses. By creating a corporate account, engaging with Wealth Directors, and integrating Bitcoin into your strategy, your company can gain a competitive edge in the evolving digital economy. Explore the opportunities today and begin your Bitcoin journey by contacting a Coinsquare Wealth Director.
