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Private businesses are investing sizable portions of their profits in Bitcoin, according to BTC-focused financial services firm River.
Private businesses invest an average of 22% of net income in Bitcoin, with a median of 10%, according to a recent report by River, based on a July survey of its more than 3,000 clients. Meanwhile, over 10% of respondents said they allocated more than half their income to Bitcoin.
River said that nearly 64% of these businesses view Bitcoin as a long-term investment and are accumulating with no plans to sell or rebalance in the near future. Of the remainder, about 25% plan to rebalance, 6.5% intend to hold their position and 5.2% lack a defined strategy.
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River said businesses were increasingly turning to Bitcoin to retain earnings due to its resistance to inflation, liquidity and counterparty risk protections.
“Traditional treasury assets such as government bonds and money-market funds have failed to adequately preserve value in the face of inflation,” River said. “Since 2020, major companies such as Microsoft, Google and Apple have lost tens of billions in purchasing power by holding these traditional instruments. Had they allocated even 1% of their treasuries to bitcoin in 2020, those losses would have been fully offset.”
But Bitcoin adoption remains easier for smaller firms, River said, highlighting that 75% of their clients have fewer than 50 employees. The firm cited several reasons for this tilt, including smaller decision makers and greater vulnerability to economic downturns.
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Still, these businesses span multiple industries, including real estate, hospitality, finance and even agriculture. Businesses like this have purchased an impressive 84,000 BTC, currently worth $9.6 billion this year, River said.
River said there are no longer any “hard barriers” preventing businesses in the U.S. from adopting Bitcoin, citing the more supportive regulatory environment under the Trump administration, better accounting treatment, improved liquidity and reduced volatility.
