President-elect Donald Trump’s pro-crypto policies are driving a wave of interest among small businesses, with many reallocating portions of their cash reserves to Bitcoin. As companies seek alternatives to traditional assets, Bitcoin is emerging as a preferred inflation hedge amid economic uncertainty and geopolitical risks.
In recent weeks, biotech firms including Enlivex Therapeutics, Acurx Pharmaceuticals, and Hoth Therapeutics have announced plans to allocate up to $1 million each to Bitcoin as a treasury reserve asset. This marks a growing shift in corporate treasury strategies as businesses increasingly view Bitcoin as a legitimate financial tool.
Bitcoin’s Growing Role in Corporate Strategy
Bitcoin’s appeal lies in its potential to outperform conventional assets like cash and Treasuries, which have faced challenges due to inflation and fiscal instability. Samson Mow, CEO of crypto infrastructure firm JAN3, highlighted its transformative potential:
“The benefits of bitcoin being used as a treasury reserve asset are obviously apparent. Inject bitcoin into a company and now it’s on its way into the top 100 company (by market value) rankings.”
According to River, a Bitcoin-focused financial services firm, corporations now hold approximately 3.3% of the total Bitcoin supply, a 30% increase year-over-year.
Oren Hershkovitz, CEO of Enlivex Therapeutics, emphasized the strategic rationale behind the move:
“The things that we’ve been going through in the last three or four years were such that evaluating bitcoin as an additional tool became a must. We were considering this regardless of Trump’s election, but it was definitely another argument in favor of executing this strategy.”
Institutional Endorsement and Political Support
Once a fringe financial instrument, Bitcoin has gained mainstream acceptance following endorsements from major institutions. Trump’s promise to establish a crypto-friendly administration has further bolstered its credibility.
David Luci, CEO of Acurx Pharmaceuticals, expressed optimism about the future:
“The next four years should be pretty good for crypto.”
The president-elect has pledged to position the U.S. as the global “crypto capital” and establish an advisory council to shape industry-related policies.
Balancing Optimism with Caution
Despite the enthusiasm, skeptics point to Bitcoin’s notorious price volatility as a potential drawback for companies seeking stable inflation hedges. SEC Chair Gary Gensler has labeled Bitcoin speculative and volatile, though the regulator’s approval of spot Bitcoin ETFs earlier this year marked a significant step for the industry.
Critics also note Bitcoin’s historical correlation with the S&P 500 during economic slowdowns, raising questions about its reliability as a counter-cyclical asset. However, Henry Robinson, co-founder of Decimal Digital Currency, dismissed these concerns:
“The notion that Bitcoin is uniquely volatile is unfair. All assets face risks in turbulent markets.”
A Shifting Landscape
As more businesses integrate Bitcoin into their financial strategies, its role in corporate treasuries is set to expand. With Trump’s administration poised to accelerate crypto adoption, Bitcoin’s position as a mainstream asset appears more secure than ever. Whether it fulfills its promise as a reliable hedge or faces challenges ahead, one thing is clear: Bitcoin’s influence in financial markets continues to grow.
