Why Bitcoin is Your Treasury’s Best Asset

Inflation is silently draining your business’s cash reserves—are you prepared to stop the bleed?

With real inflation averaging 8% annually (or more, depending on your location), your cash reserves are losing value every year, threatening your financial stability. For a $10 million treasury, or investment that does not real that rate, that’s an $800,000 loss in purchasing power annually—a significant hit for any business excluding returns on assets.

If your treasury isn’t growing faster than inflation, you’re losing money, limiting your ability to invest or weather economic downturns. With central banks signaling persistent high inflation due to global tensions, and their necessity to print fiat in order to keep their economies growing, this problem isn’t going away.

How can you protect your treasury from this erosion of value?

Many treasurers turn to bonds or gold to hedge inflation, but these fall well short in high inflationary environments. Government bonds yield around 2-5%, well below the 8% inflation rate, meaning you’re still losing 3-6% annually.

Gold averages 5% annual returns, but it can’t keep pace with inflation on longer time horizons. Some try real estate or equities, but these are illiquid or volatile, failing to deliver the growth needed to outpace inflation within prudent risk management parameters and protect your treasury long-term.

Here's my proven approach:

• Allocate 2-5% of your treasury to Bitcoin.
• Buy during market dips, or employ a daily/weekly/monthly average cost strategy. Over time, a regular purchase outperforms trying to time the market on a weighted average basis. Bitcoin has delivered average annual returns of over 80% since 2015, outpacing inflation and traditional assets at an exponential rate. For a $10 million treasury, a 2% allocation in 2015 would be worth over $320 million today.
• Start small to manage risk and consume as many educational resources as possible in order to prepare yourself for Bitcoin's market movements in order to understand Bitcoin with a view to increasing your allocation.
• Store securely with a trusted custodian, or, if you are more confident, your own secure hardware wallet storage.
• This balances risk and reward, helping your treasury grow while safeguarding against inflation.

The actionable steps to start are:

1. Calculate 2-5% of your treasury—$200,000 to $500,000 for a $10 million treasury.
2. Choose a secure custodian with SOC 2 compliance and insurance.
3. Monitor market cycles—Bitcoin often dips 30-50% after bull runs, typically every four years (next in 2028). Buy during these dips for a better entry price or average your cost with regular purchases.
4. Document your strategy and get team buy-in, using data like Bitcoin’s 80%+ historical returns.
5. Review quarterly: This ensures sustainable growth.

Key takeaways:

Bitcoin’s decentralized nature makes it a true inflation hedge, with a capped supply of 21-million coins creating scarcity that drives value as demand grows. Institutional adoption is rising, with over 5% of public companies now holding Bitcoin, and new entrants announced daily.

While volatility exists, it’s an opportunity—allocate regularly, benefit long-term. A small allocation, regular small purchases, and secure storage can transform your treasury into a growth engine, helping you focus on scaling your business without worrying about inflation.

If you’re ready, calculate your 2-5% allocation and start small. A 2-5% stake can make a massive difference over 5-10 years. Let’s make your treasury work harder—so you can stop worrying about inflation and build a secure financial future.

See you next Wednesday!

Paul

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P.S. Want to explore Bitcoin’s potential for your Treasury? Book a free 30-minute consultation to discuss your strategy.

You can access my educational recommendations here: Resources​

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