Highlights:
- Solidion Technology allocates 60% of excess cash to Bitcoin, boosting its role as a treasury asset.
- Genius Group adopts Bitcoin to diversify finances and embrace blockchain-driven strategies for future growth.
- Businesses now hold 3% of all Bitcoin, citing inflation protection and liquidity as key benefits.
Solidion Technology Corporation has recently released a major update to its corporate treasury strategy. The US-based battery materials provider will invest more than 50% of its remaining cash balances into Bitcoin. This decision reflects a high degree of confidence in the viability of BTC as a valuable strategic reserve.
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JUST IN: 🇺🇸 Public-listed company Solidion Technology announces a strategic #Bitcoin allocation for corporate strategy.
It's happening 🙌 pic.twitter.com/ryQmfuq3DL
— Bitcoin Magazine (@BitcoinMagazine) November 15, 2024
The company’s plan entails investing 60% of the excess operation cash in the purchase of Bitcoin. Moreover, in the future, Solidion intends to transfer interest earnings from money market accounts into Bitcoin. Additional capital raises in the future will also go into increasing its Bitcoin reserves. This decision is in line with Solidion’s strategic plan to diversify its treasury assets.
Enhancing Shareholder Value
Bitcoin will play a major role in the financial model of Solidion Technology. The company has stated that given that Bitcoin has a small and fixed amount of supply, it enjoys high liquidity in the international market.
These factors make Bitcoin an excellent inflation hedge. According to Vlad Prantsevich, the company’s Chief Financial Officer, Bitcoin can revolutionize financial systems because of its progressive adoption globally.
Prantsevich also highlighted that BTC is rapidly being adopted by corporations and institutional investors. He pointed out that the approval of Bitcoin as an exchange-traded fund (ETF) means that its acceptance continues to grow. Solidion has already executed the first Bitcoin purchase under this strategy. In addition, the company will continue to adjust its Bitcoin policies in the future as the need arises.
Genius Group Follows Suit with Bold Bitcoin Allocation
In recent news, Genius Group announced its intention to invest in Bitcoin as part of the company’s treasury reserve. The firm stated that it has acquired $120 million in Bitcoin as part of a new and distinct approach in the market. This investment seeks to make Bitcoin constitute 90% of the total reserves of Genius Group.
JUST IN: Publicly traded AI firm Genius Group adopts #Bitcoin as primary treasury asset, plans to acquire an initial $120 million of #BTC. pic.twitter.com/XgOGVYZP18
— Bitcoin Magazine (@BitcoinMagazine) November 12, 2024
The decision is in line with the growing adoption of Bitcoin for corporate treasury by companies. The firm has recently restructured its board to comprise people with extensive knowledge in the blockchain sector. This approach resembles actions taken by firms like MicroStrategy, which started to buy Bitcoin in 2020.
Report Highlights Surging Corporate Bitcoin Adoption
A recent report by River Financial shows that the number of global companies holding Bitcoin has surged. The report indicates that companies hold 3% of the Bitcoin in circulation. American firms alone hold 49% of corporate Bitcoin with an estimated value of $19.7 billion. Among them, private firms seem to own slightly more Bitcoin than public ones.
According to @River Financial Report, businesses today hold over 3% of all #Bitcoin in circulation—a 500% increase in just a few years!
🔸 U.S. companies: 49.3% of holdings (~$19.7B)
🔸 Private companies hold 23,000 more BTC than public ones
🔸 5 firms (@MicroStrategy ,… pic.twitter.com/DarbGsknxp— LQWD Technologies Corp. (TSXV: LQWD|OTCQB: LQWDF) (@LQWDTech) September 10, 2024
Corporate treasuries have only managed cash and liquid assets in the past. However, inflation has gradually reduced the real value of these reserves. Bitcoin’s 24/7 liquidity offers businesses a compelling alternative. The flexibility is expected to help avoid financial crises such as the Silicon Valley Bank collapse in 2023. Many companies are adopting varied Bitcoin allocation strategies to suit their operational needs. Some allocate a percentage of cash flow, while others invest based on operational surplus.
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