Bitcoin financial services firm River has revealed that its business clients are increasingly reinvesting their profits into Bitcoin, with an average reinvestment rate of 22%. This trend points to a growing grassroots adoption of the cryptocurrency across various sectors. Notably, real estate firms are leading this movement, with nearly 15% of profits being reinvested into Bitcoin (BTC). Other sectors, including hospitality, finance, and software, are also showing significant investment levels, allocating between 8% and 10%.
Interestingly, the trend is not confined to traditional sectors; businesses such as fitness studios, painting and roofing companies, and even religious nonprofits have started to adopt Bitcoin. In just this year alone, these businesses have quietly amassed a total of 84,000 Bitcoin, which represents around a quarter of the holdings that institutional fund managers and corporate treasuries have accumulated.
Sam Baker, a research analyst at River, highlighted that while corporate treasury companies have gained significant media attention, the quiet adoption by conventional businesses often goes unnoticed. He noted that improvements in Bitcoin’s accounting standards, regulatory clarity, increased acceptance from institutional players, and a favorable market environment have facilitated this widespread adoption.
Baker emphasized that the robust demand from businesses and institutions has been a driving force behind Bitcoin’s recent price surge, which has reached as high as $124,450 this cycle. He pointed out that there have been instances where Bitcoin exchange-traded fund (ETF) issuers purchased ten times more Bitcoin than what miners were able to produce, further propelling the price upward. This marks a stark contrast to the 2020-2021 cycle, where businesses largely refrained from participation and retail hype drove Bitcoin up to $69,000.
The report also indicated that the majority of River’s clients—approximately 75%—are small businesses with 50 employees or fewer. These smaller entities are finding it easier to adopt Bitcoin due to fewer bureaucratic hurdles. In contrast, larger companies, with more complex decision-making processes, tend to play it safe and adhere to established norms, which can impede their willingness to invest in Bitcoin. This may explain why so few S&P 500 companies have integrated Bitcoin into their financial strategies.
Despite the apparent increase in adoption, River’s findings reveal that most businesses are still taking a cautious approach to Bitcoin. Over 40% allocate between 1% to 10% of their net income into the cryptocurrency, while only 10% of businesses invest more than half of their net income. For many smaller companies, Bitcoin investments can be minimal—sometimes less than $10,000. For instance, a Rhode Island-based self-storage company recently acquired 0.088 Bitcoin for approximately $9,830, bringing its total holdings to 0.43 Bitcoin.
Moreover, Baker pointed out the considerable gaps in understanding regarding Bitcoin in the business community. He referenced a Cornell University survey indicating that only 6% of Americans are aware of Bitcoin’s capped supply of 21 million, while another survey revealed that 60% admitted they “don’t know much” about the cryptocurrency. This lack of awareness suggests that many decision-makers are dismissing Bitcoin not because they have thoroughly evaluated it, but because they lack the necessary understanding to assess its potential effectively.
