In a tumultuous turn of events, corporate Bitcoin treasuries have seen a drastic reduction in their value, plummeting by over $4 billion following the recent tariffs imposed by US President Donald Trump. As of April 7, these corporate Bitcoin holdings are estimated to be around $54.5 billion, down from nearly $59 billion earlier this month.
The ripple effect of the tariffs has not only impacted Bitcoin’s valuation but has also significantly affected the prices of publicly traded companies that hold Bitcoin. For instance, the Bitwise Bitcoin Standard Corporations ETF (OWNB) has suffered more than 13% in losses since Trump’s announcement of sweeping import tariffs on April 2. This downturn has raised serious questions regarding Bitcoin’s place as a stable corporate treasury asset.
The volatility surrounding cryptocurrencies adds an alarming dimension, particularly against the backdrop of traditional treasury management practices, which generally prioritize stability, liquidity, and capital preservation. According to David Krause, a finance professor, “Cryptocurrencies’ high volatility and uncertain regulatory landscape are misaligned with the fundamental goals of treasury management.”
Despite the immediate fallout, some analysts suggest that Bitcoin might still provide a safeguard against fiscal uncertainties and geopolitical risks. As suggested by a report from asset managers, Bitcoin financial instruments can act as a valuable hedge amid growing fiscal deficits and currency debasement.
Looking to the future, there are concerns among investors regarding the sustainability of Bitcoin within corporate treasuries. Research indicates that while Bitcoin’s price surged significantly in 2024, growing skepticism about companies’ strategies to incorporate Bitcoin into their business models—like that of GameStop, which lost nearly $3 billion in market valuation—suggests a cautious approach is warranted.
With Bitcoin showing signs of resilience even as traditional markets falter, the debate over its role as a non-sovereign, permissionless asset continues. Analysts urge investors to keep a close eye on Bitcoin’s performance in the context of the protectionist global economy.
