10% of US Companies Predicted to Adopt Crypto Soon

Todaysgist, News – A new report from Bitcoin technology and financial services firm River predicts that several companies in the United States will increase their exposure to Bitcoin.

River estimates that these companies will adopt Bitcoin (BTC) up to USD 54,225 or Rp. 838.2 million over the next 18 months.

Quoting CointelegraphSunday (8/9/2024) River’s report revealed that around 10% of US-based companies are likely to convert 1.5% of their cash reserves, or around USD 10.35 billion, to Bitcoin crypto over the next year and a half.

River analysts also point out that traditional corporate cash strategies rely on cash and other short-term cash equivalents, which are poor stores of value.

“This investment could generate moderate returns approaching the federal funds rate, which is currently over 5%,” said River analysts.

However, even these short-term investments often fail to outperform inflation, thereby reducing the value of cash.

The River report also notes that this inflation erosion also caused Apple, now a trillion-dollar company, to lose $15 billion of its holdings. treasury-her for the past 10 years.

Analyst forecasts also point to the growing adoption of the corporate treasury strategy popularized by MicroStrategy founder Michael Saylor.

In June 2024, MicroStrategy completed an additional debt sale of USD 800 million in the form of convertible senior notes at a rate of 2.25%, with a maturity date of 2032. MicroStrategy used the proceeds from the company’s debt to purchase an additional 11,931 BTC.

Saylor has characterized Bitcoin as an asset that ensures “economic perpetuity” for companies and businesses due to its capped supply and lack of counterparty risk inherent in other stores of value, such as real estate or equities.

MicroStrategy’s second-quarter earnings report revealed that the company currently holds 226,500 BTC, which was worth around USD 14.7 billion at the time.