The idea that most corporate treasurers are queueing up to invest in Bitcoin is one of the least credible fallacies put forward by Bitcoin maximalists. There’s no denying that founder-managed companies Microstrategy, Tesla and Square have invested. And a few others may very well follow. But not the crowds. The misconception is in part based on a misunderstanding of the role of corporate treasurers.
The vast majority of companies are not sitting on large piles of cash like Apple and Google. Hence the role of a treasurer is very different from a fund manager. Treasurers are all about risk management, not risk taking. And it’s hard to classify Bitcoin as anything other than high risk. Apart from the price volatility, Bitcoin’s sky high use of energy is bad for a company’s ESG profile. If a company invested in Bitcoin, investors would be concerned about a lack of focus on the core business.
“A key objective of treasury is to secure the business’ cash,” said Ben Walters, Deputy Treasurer at Compass Group. “The priority is to conserve that cash and make sure that it’s there when the business needs it.” And hence Bitcoin is not an option.
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