Private businesses are increasingly allocating significant portions of their profits into Bitcoin, as detailed in a recent report from BTC-focused financial services firm River. The report, based on a July survey that gathered insights from over 3,000 clients, found that these businesses invest an average of 22% of their net income in Bitcoin, with a median investment of 10%. Notably, more than 10% of respondents indicated that they have allocated over half of their income to the cryptocurrency.
According to River, approximately 64% of businesses view Bitcoin as a long-term investment, with many planning to accumulate Bitcoin without any immediate intent to sell or rebalance their portfolios. On the other hand, 25% of respondents aim to rebalance their holdings, while a small percentage remains committed to holding their positions or lack a defined strategy altogether.
One of the primary motivations for these investments is Bitcoin’s perceived ability to combat inflation. River points out that traditional treasury assets, such as government bonds and money market funds, have struggled to maintain value in the current economic climate. The report highlights that major corporations—including tech giants like Microsoft, Google, and Apple—have lost substantial purchasing power while relying on these conventional assets. River posits that even a minimal allocation of 1% of their treasuries to Bitcoin in 2020 could have offset those financial losses.
Interestingly, the adoption of Bitcoin appears to be easier for smaller firms, with River noting that 75% of its clients have fewer than 50 employees. The firm suggests that smaller businesses can make quicker decisions and may be more vulnerable to economic pressures, making them more likely to pursue alternative investment strategies.
These private businesses are active across various industries, including real estate, hospitality, finance, and agriculture. Together, they have acquired around 84,000 BTC, amounting to a current value of $9.6 billion. River emphasizes that there are now few barriers preventing U.S. businesses from adopting Bitcoin, thanks to a more supportive regulatory landscape, improved accounting practices, and enhanced liquidity.
Despite this growing interest, River reports that less than 1% of U.S. companies have adopted Bitcoin, citing public perception as a significant hurdle. Many Americans reportedly have limited understanding of the cryptocurrency, which impacts businesses’ willingness to embrace it. River highlights the challenge posed by traditional corporate structures where decisions are often made through committees, leading to a cautious approach toward new strategies.
However, perceptions surrounding Bitcoin seem to be shifting. A Nakamoto Project study indicated an increase of 11 million American adults owning Bitcoin between early 2024 and March of this year. Additionally, a Harris Poll revealed a rise in the number of adults who regard Bitcoin as “trustworthy,” from 5.3% to 10.2% in 2024. This evolving viewpoint may encourage more businesses to reconsider their strategies and potentially adopt Bitcoin in the future.
