Corporate Bitcoin (BTC) treasuries have collectively lost over $4 billion in value following a global market sell-off triggered by US President Donald Trump’s tariffs, according to recent data.
As of April 7, the total value of corporate Bitcoin holdings stands at approximately $54.5 billion, down from about $59 billion prior to April 2, based on information from BitcoinTreasuries.net.
The volatility of the cryptocurrency has impacted the share prices of publicly traded Bitcoin holders as well.
The Bitwise Bitcoin Standard Corporations ETF (OWNB), which tracks a diverse group of corporate Bitcoin holders, has seen a decrease of more than 13% since Trump announced extensive US import tariffs on April 2, as reported by Yahoo Finance.
Shares of Strategy, the prominent Bitcoin hedge fund established by Michael Saylor and known for leading corporate Bitcoin acquisitions, have also fallen, recording losses exceeding 13% since April 2, as indicated by Google Finance data.
These losses underscore ongoing concerns regarding Bitcoin’s growing acceptance as a corporate treasury asset. Traditionally, corporate treasuries invest in very low-risk instruments like US Treasury Bills.
“The high volatility of cryptocurrencies and the uncertain regulatory environment conflict with the fundamental objectives of treasury management, which prioritize stability, liquidity, and capital preservation,” stated David Krause, a finance professor at Marquette University, in a research publication from January.
Entities holding Bitcoin. Source: BitcoinTreasuries.NET
Related: Bitcoin shows ‘signs of resilience’, outperforming stocks and gold as equities decline — Binance
Is Bitcoin Suitable for Corporate Treasuries?
In 2024, the surge in Bitcoin prices propelled Strategy’s shares up by more than 350%, according to data from FinanceCharts.
The success of Strategy has led to the emergence of numerous imitators, though investor skepticism is rising.
In March, GameStop experienced a nearly $3 billion drop in market capitalization as shareholders reconsidered the retailer’s strategy to accumulate Bitcoin.
“There are uncertainties surrounding GameStop’s model. If Bitcoin is set to become the focal point, what happens to everything else?” asked Bret Kenwell, a US investment analyst at eToro, in a Reuters report on March 27.
The case for Bitcoin as a corporate treasury asset. Source: Fidelity Digital Assets
Nonetheless, incorporating Bitcoin into corporate treasuries could serve as a valuable hedge against escalating fiscal deficits, currency devaluation, and geopolitical uncertainties, according to a report from asset manager Fidelity Digital Assets in 2024.
This perspective may be gaining traction, as Trump’s tariffs unsettle markets, as noted in an April 7 research report by Binance.
“In the aftermath of recent tariff announcements, BTC has demonstrated some signs of resilience, remaining stable or recovering on days when traditional risk assets have faltered,” Binance stated.
Investors “will be observing closely to see if BTC can maintain its attractiveness as a non-sovereign, permissionless asset in a protectionist global economy,” the report concluded.
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