Report: US Firms Expect to Buy $10.30 billion Bitcoin in Next 18 Months
A new report from Bitcoin technology firm River predicts that about 10% of US companies will convert 1.5% of their cash reserves, or about $10.35 billion, into Bitcoin over the next 18 months. The report notes that traditional company financing strategies rely on cash and short-term equivalents, but these often fail to outperform inflation, leading to a depreciation of reserves. Since 2020, companies with 3% of Bitcoin are better able to withstand inflation.
The report also notes that Michael Saylor, founder of MicroStrategy, which sees Bitcoin as an "economic immortal" asset for businesses, has increased the company's market capitalisation by more than 1,000 per cent through his financial strategy in Bitcoin, far outpacing Warren Buffett's Berkshire Hathaway's 104.75 per cent growth over the same period. Mr. Buffett has refused to add Bitcoin to his portfolio.