Crypto glossary
Bitcoin treasury company
A bitcoin treasury company is a business that holds bitcoin as a main reserve asset on its balance sheet, often raising debt or equity specifically to buy more.
Companies usually keep their spare cash in bank deposits or short-term bonds. A bitcoin treasury company instead converts much of its reserves into bitcoin, arguing that it protects value better over the long term. Some do it with operating cash, while others make it their core strategy and raise money through share sales and convertible bonds to keep buying.
Strategy, formerly MicroStrategy, started the trend in August 2020 and became by far the largest corporate holder. Tesla bought 1.5 billion dollars of bitcoin in early 2021, and since 2024 dozens of listed companies around the world have copied the model. Investors often compare the company's market value with the value of its bitcoin, and a large premium lets it issue shares to buy more coins per share.
The model amplifies bitcoin's swings. If the price falls or the premium disappears, raising new capital becomes harder, debt becomes a burden and shareholders can face dilution or forced sales.
Example
A listed company with 500 million dollars in cash issues 300 million dollars of convertible bonds and uses all the money to buy bitcoin, making the coin its main treasury asset.
Related terms
Latest articles on Bitcoin treasury company
- Hyperscale Data Exits Bitcoin Treasury, Redirects Funds to AI Infrastructure
- Strategy Expands Bitcoin Treasury To 849K Tokens After $66M Purchase
- Genius Group Begins Rebuilding Its Bitcoin Treasury With a Fresh 10 BTC Purchase
- Sequans Sells Final 314 BTC, Fully Exiting Its Bitcoin Treasury Strategy
- Farage-Backed Stack BTC Bets £12M on Gold Dealer to Expand Its Bitcoin Treasury
