Key Definition: A Bitcoin treasury company is a publicly traded business that holds Bitcoin as its main reserve asset. These firms buy and store Bitcoin on their balance sheet. They use money raised from selling shares or issuing bonds to purchase more Bitcoin over time.
Summary: As of January 2026, over 160 institutions hold Bitcoin in their treasuries, with combined holdings of more than 1.7 million BTC worth approximately £127 billion. Strategy (formerly MicroStrategy) leads this trend with 673,783 BTC, making it the largest corporate Bitcoin holder in the world. The total Bitcoin held by public companies now represents over 8% of Bitcoin's maximum supply of 21 million coins.
Picture a company's treasury as its savings account. It's where businesses keep money to pay bills, handle costs, or fund new projects. A Bitcoin treasury company takes a different path. Instead of holding cash or government bonds, these firms keep Bitcoin as their main savings.
This idea started in 2020 when Michael Saylor's company, then called MicroStrategy, bought £200 million worth of Bitcoin. Saylor believed Bitcoin would hold its value better than the US dollar. Since then, his firm has grown to hold over 673,000 Bitcoin. The company even changed its name to Strategy in February 2025 to reflect its focus.
How Do Bitcoin Treasury Companies Work?
These companies follow a simple pattern. First, they raise money by selling company shares or issuing bonds. Then they use that money to buy Bitcoin. The Bitcoin sits on their balance sheet as a long-term holding.
When you buy shares in one of these firms, you get indirect access to Bitcoin. This matters for investors who cannot buy Bitcoin directly. In some countries like Japan, taxes on Bitcoin gains are very high. But taxes on company shares are lower. So buying shares in a Bitcoin treasury company can be a smarter way to benefit from Bitcoin price rises.
Pension funds and other large investors often have rules that stop them from buying Bitcoin directly. But they can buy company shares. Bitcoin treasury companies give these investors a way into the market.
Why Choose Bitcoin Over Cash?
Bitcoin has a fixed supply. Only 21 million will ever exist. This limit is written into Bitcoin's code and cannot be changed. As of early 2026, about 19.7 million Bitcoin have been mined. Less than 1.3 million remain to be created.
Compare this to pounds or dollars. Central banks can print more money whenever they choose. This printing often leads to inflation. Your cash loses buying power over time. In recent years, inflation across the UK and other countries has reminded people of this risk.
Companies that hold Bitcoin believe it protects them from this loss of value. They see Bitcoin as "digital gold" because of its scarcity. Gold has been used as a store of value for thousands of years because it's rare and hard to produce. Bitcoin shares these qualities in digital form.
Bitcoin vs Traditional Treasury Assets
The table below highlights the key differences between Bitcoin and traditional treasury assets such as cash and government bonds. These distinctions explain why some companies choose to hold Bitcoin on their balance sheets despite its short-term price volatility.
| Feature | Bitcoin | Cash/Bonds |
|---|---|---|
| Supply | Fixed at 21 million | Unlimited |
| Inflation risk | Protected by scarcity | Loses value over time |
| Control | No central authority | Government controlled |
| Availability | 24/7 global trading | Bank hours only |
| Price stability | Volatile short-term | Stable short-term |
Benefits of Collateralising on a Scarce Asset
When a company backs its balance sheet with Bitcoin, several good things can happen.
Protection from currency weakness: Governments around the world have printed vast amounts of money in recent years. This has weakened the buying power of traditional currencies. Bitcoin cannot be printed or diluted. Companies holding Bitcoin may preserve their purchasing power better than those holding only cash.
Access to new investors: Many investors want exposure to Bitcoin's price movements but cannot or prefer not to buy it directly. Bitcoin treasury companies offer them a regulated, familiar way to invest through normal stock exchanges. This can attract new shareholders and raise the company's profile.
Cheaper borrowing: Some Bitcoin treasury companies have found they can borrow money at low interest rates. Investors see their Bitcoin holdings as valuable collateral. Strategy has raised billions through bonds with interest rates below 1%. This cheap money lets them buy even more Bitcoin.
Long-term value growth: Bitcoin's price has grown massively since its creation in 2009. While past gains don't guarantee future returns, companies betting on Bitcoin believe its scarcity will drive the bitcoin price higher over time as demand grows and supply stays fixed.
New Accounting Rules Make Bitcoin Easier to Hold
Until recently, accounting rules made it hard for companies to hold Bitcoin. Under the old system, if Bitcoin's price dropped, companies had to write down its value on their books. But if the price went back up, they couldn't show that gain until they sold.
This changed in January 2025. The Financial Accounting Standards Board (FASB) in the United States brought in new rules. Now companies can show Bitcoin at its fair market value. When the bitcoin value goes up, that shows as a gain. When it falls, that shows as a loss. This gives a truer picture of what a company's Bitcoin is worth.
Strategy reported a £10 billion gain in the first quarter of 2025 thanks to these new rules. The change has made it easier for company bosses to justify holding Bitcoin to their boards and shareholders.
The Trend Is Growing Fast
What started as one company's bold bet has become a movement. In 2021, fewer than 10 public companies held Bitcoin. By early 2026, that number has grown to over 160. These firms together hold more than 1.7 million Bitcoin, worth roughly £127 billion. This equals about 8% of all Bitcoin that will ever exist.
The trend has spread beyond America. Metaplanet, a Japanese company, has become Asia's largest public Bitcoin holder with over 7,800 Bitcoin. The Blockchain Group in France aims to collect 260,000 Bitcoin by 2033. Even small firms are joining in. Jetking Infotrain in India became the first public company in that country to adopt a Bitcoin treasury in late 2024.
What Are the Risks?
Holding Bitcoin is not without danger. Bitcoin's price can swing wildly in short periods. A company that buys cheap bitcoin during a dip might see big gains. But buying at the wrong time could lead to large paper losses.
Companies that borrow money to buy Bitcoin face extra risk. If Bitcoin's price falls sharply, they might struggle to meet their debt payments. This could force them to sell Bitcoin at a bad time, locking in losses.
Rules around Bitcoin are still developing. Governments might bring in new laws that affect how companies can hold or trade it. This uncertainty is something investors must consider.
The Bottom Line
Bitcoin treasury companies represent a new way for businesses to protect their savings. By holding Bitcoin instead of cash, these firms bet that scarcity will beat money printing over the long term.
The approach carries real risks. Bitcoin's price is volatile and the regulatory future remains unclear. But for companies that believe in Bitcoin's value as "digital gold," the potential rewards make those risks worth taking.
Whether you agree with this strategy or not, Bitcoin treasury companies have changed how some businesses think about money. As more firms adopt this model, the line between traditional finance and the Bitcoin world continues to blur.
Sources
Strategy First Quarter 2025 Financial Results, Strategy Inc., 1 May 2025
Bitcoin Treasuries Data, CoinGecko, January 2026
FASB Accounting Standards Update 2023-08, Financial Accounting Standards Board, December 2023
River Business Report 2025, River Financial, 2025
Bitcoin Treasury Companies Explained, Bitcoin Magazine, December 2025
Understanding Bitcoin Treasury Companies, Charles Schwab, 2025
Digital Asset Treasury Companies Explained, CNBC, December 2025
What Is a Bitcoin Treasury Company, River Learn, July 2025