River, a leading Bitcoin technology company, has forecasted a significant shift in corporate treasury strategies in the coming 18 months. According to their analysis, an estimated 10% of US-based companies are expected to convert 1.5% of their cash reserves, approximately $10.35 billion, into Bitcoin.
This move is driven by the limitations of traditional corporate financial strategies, which rely heavily on cash and short-term equivalents that often fail to outpace inflation. River’s report highlights that companies allocating 3% to Bitcoin since 2020 have demonstrated greater resilience against inflation.
The report further criticizes traditional treasury investments for generating modest returns that often fall short of inflation, leading to diminished value. River points to Apple, a trillion-dollar company, as an example, citing a $15 billion loss in its treasury holdings over the last decade due to inflation.
