Bitcoin Treasuries May Reshape Corporate Finance Models, Advocate Says

Corporate treasuries could spark an economic revolution as bitcoin accumulation strategies reshape capital allocation and production profitability worldwide.

From Holding BTC to Selling Operations, a Corporate Strategy Path Outlined by Bitcoin Advocate

Bitcoin advocate Pierre Rochard, CEO of the Bitcoin Bond Company, outlined a vision for corporate treasury strategy on Saturday via social media platform X, describing a potential economic shift driven by widespread bitcoin adoption among businesses. Rochard, a prominent figure in the bitcoin community, emphasized that companies prioritizing bitcoin accumulation over reinvestment in their operations could trigger a feedback loop affecting the broader economy by altering the profitability of production.

In his post, Rochard stated:

The more companies save in bitcoin instead of investing in operations, the more input costs fall until producing goods and services is as profitable as holding BTC.

“We’re so early this isn’t even noticeable yet, there aren’t enough BTC treasury companies,” he opined. This observation suggests that if bitcoin adoption reaches a tipping point among corporate treasuries, it could fundamentally change how businesses evaluate the use of capital, with potentially deflationary effects on the costs of goods and services.

He expanded on the idea by mapping out a theoretical progression for companies embracing bitcoin as a financial strategy in another X post:

One day you’re saving your profits in BTC, the next you’re buying BTC instead of reinvesting in the operating business, then you’re selling the operations to buy more BTC, after that you’re borrowing long-term to buy more BTC, now you’ve got yourself a bitcoin treasury company.

This scenario resembles the path taken by software intelligence firm Microstrategy (Nasdaq: MSTR), which has amassed substantial bitcoin holdings through direct purchases and debt financing. While some analysts view such strategies as risky due to bitcoin’s volatility, advocates argue the asset’s fixed supply and resistance to inflation make it an attractive long-term reserve.