Companies increasing Bitcoin adoption as inflation hedge

Mike Belshe, CEO of cryptocurrency custody provider Bitgo, has highlighted a growing interest among corporations in adding Bitcoin (CRYPTO:BTC) to their reserve portfolios.

In an interview with CNBC, Belshe attributed this trend to a more favorable regulatory environment and the introduction of Bitcoin exchange-traded funds (ETFs).

He forecasted increased adoption of Bitcoin by companies in 2025, describing it as a hedge against inflation and economic uncertainty.

“It is absolutely going to happen. We’re talking with multiple clients right now about doing that. It’s been a conversation for the last couple of years,” Belshe said.

He noted that large corporations often hold substantial cash reserves and suggested that even a small allocation to Bitcoin could significantly impact the cryptocurrency market.

“Bitcoin just makes sense,” he added, describing it as a logical option for portfolio protection.

Belshe also commented on the regulatory landscape, criticising the previous administration for what he described as efforts to suppress the cryptocurrency industry.

He expressed optimism about the new administration's potential to adopt a more supportive approach toward digital assets.

However, Belshe acknowledged that widespread corporate adoption of Bitcoin remains in its early stages.

While some companies have adopted Bitcoin reserve strategies, others, including Microsoft, have chosen to maintain traditional financial approaches.

Microsoft recently rejected a proposal to invest in Bitcoin, citing no intention to modify its current strategy.

As inflation concerns persist and regulatory conditions evolve, industry leaders believe Bitcoin’s role as a corporate reserve asset could grow.

Belshe anticipates “good gains” in Bitcoin prices in the coming year, further enhancing its appeal to corporate treasuries.

At the time of reporting, the Bitcoin price was $92,465.69.