Bitcoin as a Treasury Asset: Why More and More CFOs Are Considering It
Bitcoin as a treasury asset from the CFO's view: lost purchasing power, the US rule ASU 2023-08, policy, custody, volatility and a sizing example.
Short answer: CFOs consider bitcoin as a treasury asset because cash in the company's reserves loses purchasing power year after year, and bitcoin, a scarce asset traded worldwide, is meant to counter that. Since 2025 the biggest practical obstacle in the US is gone as well: under the rule ASU 2023-08, bitcoin is carried on the balance sheet at market value, no longer only at its lowest price. Most companies that do it invest only a small part of their cash, with a clear policy, approval by the supervisory body and professional custody.
This article is for the people responsible for a company's finances, whether group CFO or managing director of a mid-sized business. It explains how a CFO weighs the decision and carries it out. How listed bitcoin companies such as Strategy buy bitcoin with shares and bonds, and what mNAV means, is covered in Bitcoin Treasury Companies Explained. How HGB, OR, UGB and IFRS treat bitcoin in detail is covered in Bitcoin Accounting for Companies.
The starting problem: cash loses purchasing power
Every company holds cash: for wages, suppliers, bad quarters and opportunities. Traditionally it sits in bank accounts, money market funds or short-term government bonds. That counts as safe because the nominal value does not move.
But nominal value is not purchasing power. The European Central Bank aims for 2 % inflation a year. In 2022, inflation in the euro area was above 10 % for a while. If the money earns less interest than inflation, the reserve shrinks in real terms without it showing on the balance sheet. More on how inflation works in Inflation and Loss of Purchasing Power.
How the loss of purchasing power adds up
Purchasing power after n years = 1 ÷ (1 + inflation − interest)^n (approximation for the real rate)
- 2 % inflation, 0 % interest, 10 years: 1 ÷ 1.02^10 = 0.820, so about 18 % less purchasing power.
- 2 % inflation, 1 % interest, 10 years: 1 ÷ 1.01^10 = 0.905, so about 9.5 % less.
- 5 million € in cash, 2 % inflation, 0 % interest: the real loss in the first year is about 98’000 € (5’000’000 € × (1 − 1 ÷ 1.02)).
Cash is a quiet but certain minus, bitcoin a loud but uncertain counter. So the question is which risk, at which size, suits the company.
Why bitcoin is a candidate for the reserve at all
From the finance department's point of view, bitcoin has four properties that set it apart from other investments:
- Fixed supply. There will never be more than 21 million bitcoin. No central bank and no issuer can increase the amount.
- No counterparty risk in the asset itself. Bitcoin is not a claim on a bank or a state. Counterparty risk only arises through custody, which is why custody matters so much.
- Tradable around the clock. The market never closes, and transfers between wallets take minutes, across borders too.
- High liquidity. Bitcoin trades on many exchanges worldwide, and since 2024 also through spot ETFs in the US.
Against this stand the known weaknesses: no interest, no dividend, large price swings. So bitcoin does not replace the operating account. It can be part of the long-term reserve the company will not need in the coming years.
The accounting rule: what ASU 2023-08 changed
Until 2024, US accounting was the main reason CFOs advised against bitcoin. Bitcoin counted as an intangible asset with an indefinite useful life. That meant: if the price fell even briefly below book value, the company had to write it down (impairment). If the price then rose again, it could not write it back up. The balance sheet therefore always showed the worst price since purchase, never the market value.
With the standard ASU 2023-08, the US standard setter FASB changed this. For fiscal years beginning after 15.12.2024, the following applies to bitcoin and other crypto assets that meet the conditions:
- Measurement at market value (fair value) at every reporting date.
- Gains and losses go straight through the income statement (net income).
- A separate line on the balance sheet, apart from other intangible assets.
- More disclosure in the notes: significant holdings, purchases, sales and restrictions on sale.
Early adoption was allowed, and some companies already applied the rule for 2024.
The new rule makes the balance sheet more honest, but not calmer. A bad quarter for bitcoin now immediately becomes a bad quarter for earnings. The CFO has to explain that to the board, the banks and the shareholders beforehand.
And in Europe?
ASU 2023-08 only applies to companies reporting under US GAAP. Under IFRS, the 2019 decision of the IFRS Interpretations Committee still stands: bitcoin is an intangible asset under IAS 38. Revaluation to market value is possible, but gains above cost go to equity (OCI), not to profit. Under HGB and UGB, cost is the ceiling, with a write-down on losses. Only the Swiss OR allows the reporting-date price under certain conditions. The details, with worked examples in euros and francs, are in Bitcoin Accounting for Companies.
The treasury policy: what must be settled before the first purchase
A company does not buy bitcoin the way a private investor does in an evening. The purchase needs a resolution and a written policy. It protects the company from spontaneous decisions and management from the accusation of acting rashly.
Who decides
Who has to approve depends on the legal form and the articles of association. In a German AG, the management board decides and often needs the supervisory board's consent for such investments. In a GmbH, the managing directors decide, and for large or unusual transactions the shareholders. For the management board of an AG, the business judgment rule in § 93 AktG is the yardstick: whoever decides on the basis of adequate information in the company's interest acts with due care. A documented analysis and a resolution are therefore a duty, not a formality. What a GmbH needs to watch out for in particular is in Bitcoin in a GmbH.
What belongs in the policy
| Item | Typical setting |
|---|---|
| Purpose | long-term reserve against loss of purchasing power, no trading |
| Cap | e.g. at most 2 % of cash, or a fixed amount |
| Minimum liquidity | an operating reserve for e.g. 6–12 months stays in money |
| Buying rule | regular purchases over several months instead of one date |
| Selling rule | when to sell (cash needs) and when not to (a price drop alone) |
| Custody | custodian, key distribution, emergency plan |
| Authority | who may buy, approve and sign transactions, always with four-eyes principle |
| Reporting | holdings, market value and result to the supervisory body, e.g. quarterly |
| Review | annual review of the policy |
A policy without a selling rule has a gap. The hardest moment is not the purchase but the day after a 50 % drop, when someone on the board asks whether it would be better to get out. By then the answer should already be on paper.
Custody: three routes for companies
Owning bitcoin really means owning the private keys. For a company, custody is therefore the central control question, for the auditor as well.
| Route | How it works | Advantage | Disadvantage |
|---|---|---|---|
| Regulated custodian | a bank or crypto custodian holds the keys for the company | simple processes, audit reports, insurance possible | counterparty risk, ongoing fees |
| Collaborative custody (multisig) | the company holds e.g. 2 of 3 keys, a service provider the third | no single point of failure, company keeps control | more internal processes and training |
| Self-custody | the company holds all keys itself, e.g. a 3-of-5 multisig | full control, no counterparty | high demands on security, staff and emergency planning |
In the EU, providers that hold crypto assets for clients need authorisation under the MiCA regulation (as of November 2026). In Switzerland, several banks offer crypto custody under FINMA supervision. What matters most for a CFO is whether the custodian holds the bitcoin separately from its own assets and whether they can be reclaimed if the custodian goes bankrupt.
Companies that self-custody almost always use a multisig: several keys in different places, held by different people, and no single person can send alone. How that works technically is explained in Multisig Wallet: More Security Through Several Keys.
Volatility on the balance sheet: what the CFO has to withstand
Bitcoin swings a lot. Annual volatility was about 42 % in 2025 and about 44 % in the twelve months to 07.11.2026. For comparison, 15–20 % is typical for broad stock indices. The large drops from each peak:
| Period | Peak | Low | Drop |
|---|---|---|---|
| Dec 2017 to Dec 2018 | $19’641 | $3’212 | −84 % |
| Nov 2021 to Nov 2022 | $67’525 | $15’784 | −77 % |
| Oct 2025 to June 2026 | $124’673 | $58’628 | −53 % |
Daily closes; data as of 07.11.2026, when bitcoin closed at $75’868, 39 % below the peak of 06.10.2025.
For the balance sheet this means: under US GAAP earnings swing with the price, under HGB write-downs follow, under IFRS equity swings. Banks often test ratios such as the equity ratio or leverage in loan agreements. A large bitcoin position can touch those limits even if the company has sold nothing. The CFO should read the loan agreements beforehand and inform the company's bank.
Sizing example: how much is reasonable?
Size is the most important lever. A small share can improve the reserve's purchasing power without a crash endangering the company.
| Share of cash | Amount at 5 million € | Loss at −77 % | Share of cash |
|---|---|---|---|
| 1 % | 50’000 € | 38’500 € | 0.8 % |
| 2 % | 100’000 € | 77’000 € | 1.5 % |
| 5 % | 250’000 € | 192’500 € | 3.9 % |
| 10 % | 500’000 € | 385’000 € | 7.7 % |
The rule of thumb: as much as remains bearable after an 80 % drop, and only from money the company will not need for several years. The book loss only becomes real if the company has to sell at the low, which is why minimum liquidity belongs in the policy. Buying bitcoin on credit changes the risk fundamentally. What can happen then is described in The Risk of Leveraged Bitcoin Companies.
Who already does it
Besides the pure bitcoin treasury companies, businesses with a normal operating business also hold bitcoin as part of their cash. According to the site's data, Tesla holds 11’509 BTC and Block 9’237 BTC (both as of 30.09.2026). Since 2024, Block has been buying regularly by a fixed rule, a share of the gross profit of its bitcoin business. At these companies the core business drives the share price. Bitcoin is a reserve position, not a strategy.
Why many CFOs still say no
Most large companies hold no bitcoin. The reasons are understandable:
- Volatility. A 50 % drop in a year can dominate a quarter's result. Many shareholders do not want that.
- The mandate for cash. Many treasury guidelines require capital preservation in the home currency. Bitcoin does not fit without changing the guideline.
- Accounting outside the US. Under IFRS and HGB, the balance sheet shows losses, but gains not at all or only in equity. That makes bitcoin less attractive there than in the US.
- Governance and liability. Management is liable for careful decisions. Without internal experience in custody and key management, the risk is hard to assess.
- Tax. Inside a company there is no tax-free holding period; every realised gain is taxable.
- Reputation and shareholders. At Microsoft, shareholders rejected a proposal in December 2024 to assess bitcoin as a reserve. The energy use of mining is also an issue for some boards.
These are good reasons against a large share, rarely against a small one. If you can answer the policy questions, you can resolve most of the objections.
Frequently asked questions
What does ASU 2023-08 mean for bitcoin on the balance sheet?
For fiscal years beginning after 15.12.2024, US companies measure bitcoin at market value. Gains and losses run through the income statement. Before, they could only book losses, never gains above the lowest price.
Does the new US rule also apply to companies in Germany, Austria or Switzerland?
Only if they report under US GAAP. Under HGB, UGB and IFRS other rules apply; the Swiss OR allows the reporting-date price under certain conditions. Details are in Bitcoin Accounting for Companies.
What percentage of cash do companies put into bitcoin?
Companies with a normal business usually a small share, often in the range of 1–5 % of cash. What matters is that an 80 % drop does not endanger the company and that only long-term reserve is invested.
Who has to approve it in a company?
That depends on the legal form and the articles. In an AG the management board decides, often with the supervisory board's consent. In a GmbH the managing directors, and for unusual transactions the shareholders. A documented resolution and a written policy make sense in every case.
Should a company hold bitcoin in self-custody?
Only if it can build the processes for it: multisig, separate keys, four-eyes principle and an emergency plan. Otherwise a regulated custodian or collaborative custody with a service provider is the safer choice.
Is a bitcoin treasury stock the same as bitcoin on your own balance sheet?
No. Buying a treasury stock means buying a company with debt, management and its own valuation. How that works is explained in Bitcoin Treasury Companies Explained.
Sources
- FASB: ASU 2023-08, Accounting for and Disclosure of Crypto Assets
- IFRS Interpretations Committee: Holdings of Cryptocurrencies, June 2019
- European Central Bank: Monetary policy strategy and the 2 % inflation target
- Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA)
- § 93 AktG: Duty of care and responsibility of management board members (German)
- Satoshi Nakamoto: Bitcoin: A Peer-to-Peer Electronic Cash System
Not financial, legal or tax advice. Models are no guarantee.
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