Corporate Bitcoin holdings dropped to approximately $54.5 billion from nearly $59 billion following a global market sell-off triggered by US import tariffs announced on April 2. Publicly traded Bitcoin holders faced share price declines, with the Bitwise Bitcoin Standard Corporations ETF losing over 13%. Michael Saylor's Bitcoin hedge fund also reported similar losses. This downturn raises concerns regarding the suitability of Bitcoin as a treasury asset, traditionally filled with low-risk investments like US Treasury Bills. Despite Bitcoin's surging popularity as a corporate treasury asset, its volatility presents challenges to treasury management goals. While some asset managers still advocate for Bitcoin as a hedge against fiscal deficits and geopolitical risks, skepticism is increasing among investors, especially with notable declines in companies like GameStop. The recent market responses underscore the risks tied to incorporating cryptocurrencies into corporate treasuries.

Source 🔗