Want to learn more about Bitcoin? We look at he meaning of ‘Bitcoin treasury’, how companies are gambling on BTC as a store of value, and why Jack Dorsey thinks it could become irrelevant.
Most of us think of Bitcoin, memecoins, and even stablecoins through a personal, limited perspective. For some, that can mean it is our daily driver for online gambling, for others, it’s their investment strategy for future-proofing their retirement.
There have always been the Michael Saylors and Elon Musks of the world, who are well-known for being flag-waving crypto-evangelists, but a subtle change in the market is the growing number of companies that are now using Bitcoin and altcoins as a store of value.
Crypto casinos are expected to hold large reserves of Bitcoin and other altcoins, such as Ethereum and Solana, to ensure they can honour player deposits and, more importantly, high-value withdrawals.
When Michael Saylor, the CEO and founder of Microstrategy, announced in 2020 that the company would begin storing up Bitcoin the way a squirrel stores nuts for the winter, the broader business community thought he’d lost the plot.
It didn’t help that he kicked off the event with a massive $250 million investment, buying up 21,454 BTC. Earlier this year, the company announced that its holdings now total around 638,460 BTC. This store makes it the largest corporate BTC hodler in the world!
While Saylor and the company came under scrutiny for the bold move, the reality is that due to the increased value of the market-leading token, their margin is something along the lines of +$22 billion!
Musk is known to be pro-DOGE, but what some have forgotten is that he also pioneered big-business investment in Bitcoin. In 2021, Musk had Tesla spend approximately $1.5 billion to acquire 42,000 BTC.
Tesla sold off about 10% of its crypto holdings, realsing a $100 million profit, but has chosen to freeze its crypto efforts for the time being. While they’re holding it as a store of value, they are not following MicroStrategy and actively accumulating more virtual coins.
That being said, with an average purchase price of around $35,714 at the current value of $110,000 per token, their unrealised profit margin is around $2.8 billion. Not an insignificant stockpile for any business.
Bitcoin treasuries, also known as corporate crypto reserves, are increasingly accepted and, in many cases, expected financial strategies for modern companies, particularly those in the tech and innovation sectors.
Here are three recent examples:
As the innovation and exciting technological advances of blockchain and cryptocurrencies become more commonplace, we can expect more businesses to look to BTC to shore up their reserves.
While investors, both corporate and personal, lean into the benefits of BTC (especially its incredible growth potential), tech gurus like Jack Dorsey, the co-founder of social media platform Twitter and current CEO of Block, are pushing for the token to move from asset to digital cash.
Doresey responded to a post on X extolling the virtues of doing business in crypto with a simple but poignant statement: “Bitcoin is money”
While the point seems simple enough, not everyone was immediately sure what Doresey meant. With Ripple CTO, David Schwartz, finally clarifying:
“I think he's somehow trying to say that bitcoin should be seen as a payment system rather than a speculative asset.”
A simple review of Doresey’s past comments on cryptocurrency as a payment method rather than an asset would clarify his position. He has long opposed the analogy of Bitcoin as digital gold, saying:
“I think it has to be payments for it to be relevant daily. Otherwise, it’s just something you kind of buy and forget, only using it in emergency situations or when you want to get liquid again. So I think if it doesn’t transition to payments and find that everyday use case, it just gets increasingly irrelevant. And that’s failure to me,”
While he recognises that the BTC platform is not the best for ongoing transactions, a reality that necessitated the creation of the Lightning Network (a Layer 2 solution designed to enable fast, low-cost, and scalable transactions), he believes it is core to Bitcoin's foundation of Bitcoin.
Putting his money where his mouth is, Block Inc. is in the process of developing transactional tools that will make “Bitcoin payments as seamless as card payments”, according to its Head of Bitcoin Products, Miles Suter.
Only time will tell whether Dorsey is correct that BTC needs to be exchanged daily to remain relevant, or whether it will transition from Satoshi’s original vision of peer-to-peer banking to become a store-of-value asset exclusively.
Until then, check out the generous welcome bonuses from our recommended Bitcoin casinos. With all its ups and downs, crypto is still the best way to enjoy world-class slots, live dealer gameshows, and classic table games like blackjack, baccarat, and roulette, at your favourite casino.
Lock in those big wins by not falling foul of local crypto tax laws. Check out our handy crypto casino taxation guide for more tips.
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