 
 
Global adoption of Bitcoin has been on the rise, with institutional players accumulating Bitcoin at a much faster pace than ever before. Remarkably, many companies have begun to adopt Bitcoin as a treasury asset—a move that suggests that Bitcoin has been serving as an inflation hedge for these companies.
While many have criticized this growing trend, citing Bitcoin’s volatile nature as a major risk factor, others are recognizing the reasoning behind this continued development.
Weiss Crypto, a crypto ratings platform, has recently highlighted the factors driving institutions to adopt Bitcoin as a part of their treasury strategy. As Weiss noted, more than 124 publicly traded companies are holding Bitcoin on their balance sheets, with a collective total of 809,000 BTC—nearly 4% of the asset’s total circulating supply.
The reason behind this move, Weiss explains, includes the yield opportunities that Bitcoin provides. Remarking that a handful of companies are looking to take out profit from yield opportunities, Weiss wrote the following: “Companies like Block and Riot are finding ways to generate returns from idle BTC.”
Additionally, because Bitcoin can be utilized as collateral, like gold or bonds, institutions stand to gain access to liquidity without selling their holdings—another factor that Weiss believes is a key driver.
 
Investor Interest and NAV Premiums stick out as yet another factor that positions Bitcoin as an attractive treasury asset. As Weiss wrote “Many crypto-heavy firms are trading well above their net asset value (NAV), attracting speculative capital and growing brand equity.”
For companies operating in regions with a weakened fiat currency or conducting operations in areas of global macroeconomic uncertainty, Bitcoin enables these firms to hedge against inflation and currency risks, according to Weiss’ assertion.
Source: https://zycrypto.com/institutional-adoption-for-bitcoin-as-treasury-asset-is-off-the-roof-and-heres-exactly-why/