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WHAT is a bitcoin treasury? We all understand what a treasury is – if your enterprise is sizeable enough, you likely have one of your own.
A treasury is where you place financial assets made by the enterprise to handle cash flow, debt, investments for company operations and/or shareholder value.
So what is a bitcoin treasury?
A bitcoin treasury is a bit different from a traditional treasury as it doesn’t deal with meeting the obligations of the business, but rather is an investment arm to guard against fiat erosion through inflation and capitalise on the Bitcoin hype.
Big names like Tesla, MicroStrategy and Square have famously built bitcoin treasuries with huge success.
A prime UK example is The Smarter Web Company (AQSE: SWC). Its stock price rocketed from a £4m market cap to over £1bn in just a few months after announcing bitcoin treasury purchases.
Though the shares later cooled to a still-impressive market cap of around £525–610m, the company’s 2,050 BTC (worth around £185m) played a massive role. Smarter Web raised funds, including £7.6m through a share subscription and a $21m bitcoin-denominated bond, to build its bitcoin reserve.
This wasn’t all bitcoin magic, the web design and marketing firm was likely undervalued to begin with.
But its bold move into a bitcoin treasury put it on the map, significantly boosting its market valuation.
With the UK’s limited options for crypto exposure and its push to become a crypto hub, Smarter Web was seen as an innovator, sending its share price sky-high.
So, a bitcoin treasury isn’t just a hedge against inflation or a bet on crypto’s future, it can also supercharge your share price and shine a spotlight on an undervalued business, making it a game-changer for investors.
Moneybrain Corporate now have a bitcoin treasury of their very own. Go to moneybrain.corporate.com for more details.
