Corporations to use Bitcoin in Treasury plans

Zoya Malik posted 7 April 2021


ew research by Nickel Digital Asset Management with institutional investors and wealth managers across Europe, reveals that over the next two years 81% expect to see an increase in corporations using Bitcoin for their treasury reserves with 29% expecting to see dramatic growth in this trend.

Anatoly Crachilov, co-Founder and CEO of Nickel Digital commented, “A growing number of corporations, including Tesla, MicroStrategy, and Square have recently made non-trivial, multi-billion allocations to Bitcoin as part of their treasury reserve. This, coupled with announced structural allocations to crypto assets by asset managers, including Paul Tudor Jones, Bill Miller, Ruffer, and Guggenheim Partners is a huge endorsement for Bitcoin emerging as a store of value.

“The COVID-19 crisis and expansionary monetary policies implemented in response, has changed the outlook for fiat currencies, massively increasing the risk of currency debasement. Indeed, US M2 Money Supply increased by 28% over the last year, on the strongest pace in nearly 80 years, raising red flags for asset managers.

“The recent poor performance of gold, as well as $16 trillion worth of global bonds trading in negative yield territory has encouraged corporations to rethink their treasury strategies. Bitcoin, a non-discretionary asset (i.e. without anyone’s ability to unilaterally inflate its monetary policy), with unique attributes of immutable and verifiable supply, predictable issuance schedule and deflationary characteristics make it an appealing asset allocation for many corporates and asset managers alike.”