Why S&P 500 Companies Are Buying Bitcoin for Their Treasuries — And How It Works

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In the past few years, we’ve seen a noticeable shift: more and more publicly traded companies, including those in the S&P 500, are starting to hold Bitcoin on their balance sheets. What began as an unconventional move by a few bold firms is now turning into a broader trend.

But why are major corporations converting part of their cash reserves into Bitcoin? What’s their strategy — and how does it work?

Let’s break it down.

The Motivation Behind Holding Bitcoin as a Treasury Asset

There are four key reasons companies are moving some of their cash into Bitcoin:

1. Hedging Against Inflation

Corporations are sitting on billions in cash, and that cash is slowly being devalued. Between 2020 and 2023, loose monetary policy, stimulus packages, and low interest rates led to rising inflation. Many executives began questioning the wisdom of holding large cash reserves that were essentially losing value every year.

Bitcoin, with its fixed supply of 21 million coins, offers a hedge. It’s not controlled by any central bank, and no one can “print” more of it. Companies that believe the dollar is weakening over time see Bitcoin as a store of value, similar to digital gold.

2. Better Returns Than Cash

Holding cash or even short-term Treasury bonds has offered historically low returns in recent years. Bitcoin, despite its volatility, has dramatically outperformed both cash and bonds over the past decade. For CFOs and corporate treasurers willing to take calculated risks, Bitcoin offers potential upside that fiat simply can’t match.

3. Diversification of Treasury Holdings

Traditionally, corporate treasuries are heavily weighted toward U.S. dollars, government bonds, and money market funds. Adding Bitcoin is a way to diversify into an uncorrelated asset class. This can reduce risk over time, especially if Bitcoin continues to behave differently from traditional financial markets.

4. Brand Signal & Innovation

Holding Bitcoin also sends a message. Companies that embrace crypto are seen as forward-thinking, innovative, and in tune with younger and more tech-savvy investors. This can help them attract talent, drive media attention, and even appeal to retail shareholders who are bullish on crypto.

Companies Leading the Way

Let’s look at a few high-profile examples of S&P 500 companies that have added Bitcoin to their treasuries:

MicroStrategy

This is the poster child of corporate Bitcoin adoption. In August 2020, MicroStrategy bought 21,454 BTC for $250 million. Since then, under executive chairman Michael Saylor, the company has doubled down again and again. As of May 2025, MicroStrategy holds over 580,000 BTC — worth more than $40 billion.

They’ve financed purchases through both corporate profits and debt offerings. In many ways, MicroStrategy has become a Bitcoin holding company more than a software analytics firm.

Tesla

In early 2021, Tesla shocked the market by buying $1.5 billion worth of Bitcoin. Although it later sold some of those holdings, it was still a major milestone: one of the most valuable companies in the world had embraced Bitcoin as a treasury asset. Elon Musk said the move was to “diversify and maximize returns” on idle cash.

Tesla’s bold move legitimized Bitcoin in the eyes of other corporations.

Coinbase

As the largest U.S.-based crypto exchange, it’s no surprise Coinbase holds large amounts of Bitcoin. What’s notable is that Coinbase is now in the S&P 500, meaning mainstream index investors now have indirect exposure to BTC.

How Do Companies Actually Buy and Hold Bitcoin?

Corporations don’t just log into Binance or Coinbase and start buying like retail investors. The process is more structured:

1. Purchasing the Bitcoin

Most companies buy Bitcoin through:

• OTC (Over-the-Counter) desks to avoid slippage on large orders.

• Exchanges like Coinbase Prime or Kraken Institutional for smaller or recurring purchases.

• Debt issuance: Some companies raise money through convertible notes or bonds, then use that capital to buy BTC.

2. Custody and Security

Holding Bitcoin requires a secure storage solution. Corporate treasuries usually don’t self-custody. Instead, they rely on institutional-grade custodians such as:

• Fidelity Digital Assets

• BitGo

• Anchorage

• Coinbase Custody

These firms provide cold storage, insurance, and compliance reporting that matches corporate and regulatory standards.

3. Accounting and Reporting

Until recently, Bitcoin was treated as an intangible asset, meaning companies couldn’t report unrealized gains — but had to recognize impairment losses when the price fell.

However, new rules from the Financial Accounting Standards Board (FASB) now allow companies to report Bitcoin at fair market value, showing gains and losses each quarter. This change could encourage even more adoption, as CFOs won’t have to explain misleading “paper losses” on earnings calls.

What Are the Risks?

No investment comes without risk — and Bitcoin is no exception. Here are some of the key concerns companies must manage:

• Volatility

Bitcoin can swing 10% in a day. This can impact earnings reports and balance sheet optics — especially for conservative investors or board members.

• Regulatory Uncertainty

Although the U.S. is moving toward clearer regulations on crypto (especially stablecoins and exchanges), Bitcoin’s classification can still vary by jurisdiction. Companies must work closely with legal and compliance teams.

• Security

While custodians reduce the risk, hacks and insider threats remain a concern. Corporate treasuries require multi-layered security protocols and insurance coverage.

The Bigger Picture

Some analysts believe this is only the beginning. According to research by Architect Partners, up to 25% of all S&P 500 companies could hold Bitcoin by 2030. That might seem ambitious, but it’s not far-fetched — especially as:

• Accounting rules become more favorable

• Institutional custodians improve

• Bitcoin ETFs make BTC easier to access and trust

As Bitcoin continues to mature, its role is expanding beyond retail investment and into corporate finance. For crypto believers, this trend confirms a growing institutional backbone for Bitcoin’s long-term adoption.

Bitcoin is no longer just a speculative asset traded by individuals. It’s becoming a serious component of corporate financial strategy.

Whether to hedge inflation, seek higher returns, or diversify from traditional fiat, some of the world’s most prominent companies are betting on Bitcoin — and that number is likely to grow.

If you believe in Bitcoin’s long-term future, these moves by public companies are a powerful validation. They’re not just investing for hype. They’re playing the long game — and bringing Bitcoin into the financial mainstream one balance sheet at a time.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.