Businesses Are Putting 22% Of Their Profit In Bitcoin, Report Says
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Private businesses are investing sizable portions of their profits in Bitcoin, according to BTC-focused financial services firm River.
Private businesses invest an average of 22% of net income in Bitcoin, with a median of 10%, according to a recent report by River, based on a July survey of its more than 3,000 clients. Meanwhile, over 10% of respondents said they allocated more than half their income to Bitcoin.
River said that nearly 64% of these businesses view Bitcoin as a long-term investment and are accumulating with no plans to sell or rebalance in the near future. Of the remainder, about 25% plan to rebalance, 6.5% intend to hold their position and 5.2% lack a defined strategy.
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River said businesses were increasingly turning to Bitcoin to retain earnings due to its resistance to inflation, liquidity and counterparty risk protections.
“Traditional treasury assets such as government bonds and money-market funds have failed to adequately preserve value in the face of inflation,” River said. “Since 2020, major companies such as Microsoft, Google and Apple have lost tens of billions in purchasing power by holding these traditional instruments. Had they allocated even 1% of their treasuries to bitcoin in 2020, those losses would have been fully offset.”
But Bitcoin adoption remains easier for smaller firms, River said, highlighting that 75% of their clients have fewer than 50 employees. The firm cited several reasons for this tilt, including smaller decision makers and greater vulnerability to economic downturns.
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Still, these businesses span multiple industries, including real estate, hospitality, finance and even agriculture. Businesses like this have purchased an impressive 84,000 BTC, currently worth $9.6 billion this year, River said.
River said there are no longer any “hard barriers” preventing businesses in the U.S. from adopting Bitcoin, citing the more supportive regulatory environment under the Trump administration, better accounting treatment, improved liquidity and reduced volatility.
But according to River, less than 1% of U.S. companies have adopted the digital asset. The firm said this is due to public perception, citing several studies that show most Americans know little about Bitcoin and generally do not understand it. The firm added that for businesses that even considered adopting Bitcoin, most did not follow through out of fear of going against established norms.
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“In traditional corporate environments, decisions are made by committees, boards, and executives who are heavily incentivized to follow norms and avoid controversy,” River said. “Even if a CEO or CFO is personally convinced of bitcoin’s long-term value, they are unlikely to advocate for adoption unless peer companies have already done so.”
But the perception around Bitcoin is also changing, River said. The firm cited a Nakamoto Project study that showed that the number of American adults who own Bitcoin increased by 11 million between early 2024 and this past March. The firm also cited a Harris Poll study, which said that the number of American adults who described Bitcoin as “trustworthy” increased from 5.3% to 10.2% in 2024.
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This article Businesses Are Putting 22% Of Their Profit In Bitcoin, Report Says originally appeared on Benzinga.com
