Corporate Treasury

In the crypto context, corporate treasury refers to the practice of corporations managing their treasury reserves by holding cryptocurrencies, most commonly Bitcoin (BTC), as part of their broader financial strategy. Companies may choose to invest in cryptocurrencies as a hedge against inflation, currency devaluation, or to diversify their asset base. For example, in 2020, companies like MicroStrategy and Tesla made headlines by investing large portions of their corporate treasury into Bitcoin. This strategy reflects growing institutional interest in digital assets as a store of value. While holding crypto in corporate treasury can offer benefits such as potential appreciation and diversification, it also carries risks related to the volatility of crypto markets, regulatory uncertainties, and cybersecurity challenges in managing digital assets.