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Why You Should Hold Bitcoin as a Corporate Treasury Reserve Asset

Posted 10/8/20 by Brady Swenson

If your company is consid­ering acquiring some bitcoin, email us at Treasury@SwanBitcoin.com to see how we can help.

Did you know that compa­nies around the world are starting to hold Bitcoin on their balance sheets? When compa­nies like Square and MicroS­trategy start buying Bitcoin, it’s time to pay atten­tion. But smaller private compa­nies are also making this move. Here’s why you should consider doing the same.

We believe that bitcoin has the poten­tial to be a more ubiqui­tous currency in the future. As it grows in adoption, we intend to learn and partic­i­pate in a disci­plined way.

Amrita Ahuja, CFO, Square

The Federal Reserve has removed the store of value function of money. It is their stated objec­tive to inflate away the value of the cash in your treasury by at least 2% per year. This adds up quickly. Fortu­nately there is an alter­na­tive store of value that has matured to the point where large public compa­nies like Square and MicroS­trategy trust is as a corpo­rate reserve asset.

This invest­ment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocur­rency, is a depend­able store of value and an attrac­tive invest­ment asset with more long-term appre­ci­a­tion poten­tial than holding cash. Since its incep­tion over a decade ago, Bitcoin has emerged as a signif­i­cant addition to the global finan­cial system, with charac­ter­is­tics that are useful to both individ­uals and insti­tu­tions. MicroS­trategy has recog­nized Bitcoin as a legit­i­mate invest­ment asset that can be superior to cash and accord­ingly has made Bitcoin the principal holding in its treasury reserve strategy.

Michael Saylor, CEO, MicroS­trategy

It was back in August that MicroS­trategy, a billion-dollar Nasdaq listed company, announced the purchase of 21,454 bitcoin, almost five times the amount Square did. The media mostly slept on the initial purchase by MicroS­trategy, unlike the coverage of Square, which was widely publi­cized. These two compa­nies are demon­strating not only the safety of, but a neces­sity to hold Bitcoin on corpo­rate balance sheets to avoid dollar debase­ment.

We just had the awful realiza­tion that we were sitting on top of a $500 million ice cube that’s melting.

Michael Saylor, CEO, MicroS­trategy

Swan can help you put Bitcoin on your balance sheet. We have access to deep pools of liquidity and will work with you to help you under­stand Bitcoin and build a positions respon­sibly and safely.

We feel pretty confi­dent that Bitcoin is less risky than holding cash, less risky than holding gold.

Michael Saylor, CEO, MicroS­trategy

If your company is consid­ering acquiring some bitcoin, email us at Treasury@SwanBitcoin.com to see how we can help.

At a Glance

List below as of 10/8/2020

Here are some compa­nies that hold Bitcoin (BTC) on their Balance sheet as a corpo­rate treasury reserve asset.

MicroStrategy

Website: microstrategy.com
Date of Announce­ment: August 11th, 2020
Location: USA
Company type: Publi­cally traded on NASDAQ
Industry: Enter­prise Software
Size of company: 2,396 employees and $1.42 billion market cap
CEO: Michael Saylor 
Amount of Bitcoin: 38,250 bitcoin
Fiat spent: $425m USD (85% of treasury)
Press Release: MicroS­trategy Adopts Bitcoin as Primary Treasury Reserve Asset
Inter­views: Pomp Podcast #385, Stephan Livera Podcast #213, Bitcoin Audible #47, Real Vision, Bitcoin Standard Seminar 5
Quotes: 
“Bitcoin is 19.3 trillion times more secure than it was 10 years ago, 50x more secure than the next best thing. Gold is still as secure as it was in 1934.”
“Bitcoin is digital gold — growing harder, smarter, faster, and stronger due to the relent­less progres­sion of technology.“

If your company is consid­ering acquiring some bitcoin, email us at Treasury@SwanBitcoin.com to see how we can help.

Square, Inc.

Date of Announce­ment: October 8th, 2020
Location: USA
Company type: Publi­cally traded on NASDAQ
Industry: FinTech, Payments
Size of company: 3,835 employees and $81b market cap
CEO: Jack Dorsey
Amount of Bitcoin: 4,709 Bitcoins
Fiat spent: $50m (~1% of Squares total assets)
Press Release: Square, Inc Bitcoin Invest­ment Whitepaper
Quotes:
“Today, Square announced that it has purchased $50M in bitcoin. Square believes cryptocur­rency is an instru­ment of economic empow­er­ment and provides a way to partic­i­pate in a global monetary system, which aligns with the compa­ny’s purpose.“

If your company is consid­ering acquiring some bitcoin, email us at Treasury@SwanBitcoin.com to see how we can help.

Tahinis Restaurants

Date of Announce­ment: August 18th, 2020
Location: Canada
Company Type: Private
Industry: Restau­rant Chain 
Size of Company: 4 corpo­rate locations and 3 franchises coming soon
CEO: Ali Hamam
Amount of Bitcoin: 100% of Treasury
Cost Basis: N/A
Press Release: @TheRealTahinis 
Inter­views: Bitcoin Rapid Fire w/ Bitcoin Magazine, Citizen Bitcoin
Quotes:
“We as a company decided to store all of our excess cash reserves into Bitcoin as it offers a much better alter­na­tive to saving cash. We will continue to do that over the coming years and maybe forever if we don’t have need for the fiat.”
“For me I view Bitcoin as a true savings technology that stores wealth across time and space. And it became apparent to me that there is a game of musical chairs being played out right now ant the music will stop and some people will get left out.” 

If your company is consid­ering acquiring some bitcoin, email us at Treasury@SwanBitcoin.com to see how we can help.

Snappa

Date of Announce­ment: August 24, 2020
Location: Canada
Company type: Private
Industry: Graphic Design Software
Size of company: 7 employees
CEO: Chris Gimmer
Amount of Bitcoin: 50+% of Treasury
Press Release: Why We’re Holding Bitcoin as a Reserve Asset 
Inter­views: Tales From the Crypt #192, Bitcoin Rapid Fire
Quotes:
”“Would you rather save money in a currency whose supply is inflating each year? Or would you rather save in a currency whose terminal supply is program­mat­i­cally fixed?“

If your company is consid­ering acquiring some bitcoin, email us at Treasury@SwanBitcoin.com to see how we can help.

Swan Bitcoin

Date of Announce­ment: October 8th, 2020
Location: USA
Company type: private
Industry: FinTech, Bitcoin
Size of company: 8 employees
CEO: Cory Klipp­sten
Amount of Bitcoin: 100% of revenue, 50% of treasury
Announce­ment: Twitter
Quotes:
“We are a Bitcoin company and we hold Bitcoin as a reserve asset because we believe Bitcoin is the best savings technology in the world.“

If your company is consid­ering acquiring some bitcoin, email us at Treasury@SwanBitcoin.com to see how we can help.

Which Company is Going to Buy Bitcoin Next?

As more compa­nies realize the advan­tages of holding Bitcoin on your balance sheet, we’ll likely see an accel­er­a­tion of these announce­ments. 

“No one wants to be first, last, or left behind.” 

Putting Bitcoin on the balance sheet is no longer consid­ered a risky move. Thanks to MicroS­trategy and Square, Inc who set a strong prece­dent for future compa­nies consid­ering a similar move. 

If your company is consid­ering acquiring some bitcoin, email us at Treasury@SwanBitcoin.com to see how we can help.



This blog offers thoughts and opinions on Bitcoin from the Swan Bitcoin team and friends. Swan Bitcoin is the easiest way to buy Bitcoin using your bank account automatically every week or month, starting with as little as $10. Sign up or learn more here.

Brady Swenson

Brady is the Head of Education at Swan Bitcoin, the best place to buy Bitcoin with easy recurring purchases straight from your bank account. Brady also hosts Citizen Bitcoin, a podcast focused on documenting his journey learning Bitcoin, featuring some of the biggest names in the Bitcoin world.

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Swan Bitcoin does not provide any investment, financial, tax, legal or other professional advice. We recommend that you consult with financial and tax advisors to understand the risks and consequences of buying, selling and holding Bitcoin.