Corporate Bitcoin (BTC) treasuries have seen a significant decline, losing over $4 billion in value following the tariffs imposed by US President Donald Trump, which sparked a global market downturn. As of April 7, the total value of corporate Bitcoin holdings is around $54.5 billion, a decrease from approximately $59 billion prior to April 2, based on recent data.
The volatility of the cryptocurrency has also affected the share prices of publicly traded companies holding Bitcoin. The ETF tracking a mix of corporate Bitcoin holders has experienced a loss of more than 13% since the announcement of the tariffs on April 2, according to market reports.
Similarly, shares of the prominent Bitcoin hedge fund, which was founded by a notable advocate for corporate Bitcoin acquisition, have dropped by over 13% since early April, as reported by finance data sources.
These losses bring to light the ongoing skepticism surrounding the adoption of Bitcoin as a corporate treasury asset. Traditionally, corporate treasuries prioritize low-risk assets such as US Treasury Bills. “The high volatility of cryptocurrencies and their uncertain regulatory environment contrast sharply with the fundamental objectives of treasury management, which include stability, liquidity, and capital preservation,” stated a finance professor in a recent research study.
Entities holding Bitcoin. Source: Unnamed Source
Related: Bitcoin shows signs of resilience, outperforming stocks and gold amid equity declines.
Is Bitcoin Suitable for Corporate Treasuries?
In 2024, soaring Bitcoin prices propelled shares of the hedge fund up more than 350%, according to market analytics. This success has spurred many imitators, yet investor confidence is waning.
In March, GameStop saw a nearly $3 billion drop in market capitalization as investors began to question the retail giant’s strategy to accumulate Bitcoin. “There are uncertainties with GameStop’s model. If Bitcoin is to be the pivot, what does that mean for other aspects?” remarked a US investment analyst.
The case for including Bitcoin in corporate treasuries is not clear-cut. Adding Bitcoin could present a viable hedge against rising fiscal deficits, currency devaluation, and geopolitical uncertainties, according to an asset management report. This perspective may become increasingly relevant as market instability follows the tariff announcements. Observers note that, despite the tumult, Bitcoin has exhibited some resilience, maintaining or rebounding on days when other risk assets faltered.
Investors will be keen to see if Bitcoin can sustain its attractiveness as a non-sovereign, permissionless asset in a protectionist global landscape, as highlighted in recent analyses.
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