Why companies are putting Bitcoin on the balance sheet.

More and more companies are adding bitcoin to their balance sheets. What started as a bold move by a single software firm has become a broader trend — one that’s quietly changing how businesses manage their cash reserves.

It all began with Strategy (formerly MicroStrategy). Under the leadership of Michael Saylor, the company converted its dollar reserves into bitcoin. Today, it holds over 582,000 bitcoin — nearly 3% of all bitcoin that will ever exist. That radical move paid off: bitcoin’s price rose, and Strategy’s market cap surged even more. The success didn’t go unnoticed. From tech firms to financial service providers, more companies are now considering bitcoin as a strategic asset.

A hedge against value loss.

Why would a company choose something as volatile as bitcoin to protect its capital? The answer is simple: to defend against loss of value. Many firms sit on large cash reserves — for stability or future plans. But with inflation and the weakening power of fiat currencies like the dollar and euro, that money steadily loses its worth.

Until recently, U.S. Treasuries were the standard hedge — seen as safe and offering modest returns. But that status is fading. America’s debt is ballooning, confidence in repayment is slipping, and geopolitical tensions are making U.S. bonds less appealing.

At the same time, interest in “hard” assets is rising — assets that are scarce and can’t be printed at will. Gold is the classic example. Bitcoin is its digital counterpart. With a fixed supply of 21 million and a decentralized structure, bitcoin is immune to monetary manipulation — making it attractive to companies looking to preserve their wealth.

Pioneers like Tesla and Block (formerly Square) were early to hold bitcoin as a reserve. More businesses are now following suit — not to speculate, but to maintain purchasing power.

A new category: Bitcoin treasury companies.

Some companies go even further. A new category has emerged: businesses built specifically to accumulate bitcoin. Strategy is the best-known, but others are quickly joining. These bitcoin treasury firms raise capital by issuing shares or bonds, then use the proceeds to buy more bitcoin. The goal: lock in as much digital scarcity as possible before the rest of the world catches on.

The message is clear: bitcoin is no longer just for individuals or crypto startups. A growing number of companies now see it as a strategic move — not for speculation, but to protect their capital from erosion.