I recently spoke with a CIO at a company actively onboarding clients with corporate treasuries in excess of $25M. These “entry-level” corporate money managers are being advised to allocate 20% to bitcoin. In this example 👇🏽
\(\$5\text{M}
\)
The conversation is no longer “Should we?” but “How much, and how soon?”
The current thesis for entry is bold but simple; allocate 20% of your corporate cash to bitcoin. This isn’t being sold as a moonshot.
This is a risk-averse strategy.
It’s a calculated hedge against fiat debasement, operational risk, and the creeping irrelevance of legacy cash management.
Which firms might be prime beneficiaries from this daily $500M cash cow in the going forward US Stablecoin hegemonic world? Will Visa and Mastercard hold on to their TAM or will it be “penetrated” by Circle and Kraken? Or will the HNICs at JP Morgan and other GSIBs landgrab the lion’s share?
The math adds up to $180B per year - almost exactly the market cap of Shopify.
Bitcoin’s consensus mechanism has been battle-tested
Allocating to btc is a direct play on long-term purchasing power.
Bitcoin offers asymmetric upside in a world of erosion by inflation.
A Bitcoin treasury signals to the market that your company is juggling alternative futures rather than being wed to one.
Realities
Yes, bitcoin is volatile. But so is the world.
The key is position sizing and time horizon - 20% is aggressive, but for treasuries north of $25M it’s a calculated bet, not a YOLO.
Secure custody, insurance, and regulatory clarity are non-negotiable. The good news? Institutional-grade solutions are now table stakes / and come with political blessings.
Mark-to-market rules can be a pain, but FASB is catching up. Expect more clarity and less friction as adoption grows.
Ethereum DATs: The New Kid on the Block
Nuance: while bitcoin is money, ETH is a utility token. It’s just a different animal. DATs are vehicles for holding ETH on balance sheets, and already, 2% of all ETH is in these structures, according to Blockworks. As more DATs launch, that number will climb … 4% …. 10%, maybe even 51% someday.
The more ETH locked in DATs, the more “legitimized” it becomes as a treasury asset. This is the same network effect that made Bitcoin the default digital reserve. If half a trillion dollars’ worth of ETH is locked up in treasuries, you better believe the asset’s legitimacy and price floor are going up. Traders gonna trade.
Takeaways
For Treasurers: Start with a bitcoin allocation. 20% is the new nothing. If you’re not at the table, you’re on the menu.
2 and 20, bitch please.
For Boards: Push for clarity on digital asset policy. The risk is inaction.
For more intellectual masturbation come join me at my retreat in Panama. It’s the new Sun Valley minus the dorky vests and less heavily skewed to cool, warm and neutral tones of white.
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