Fidelity Executive: BTC Outperforms Traditional Assets in the Long Term, Holds Strategic Reserve Value

According to Bitcoinmagazine, Chris Kuiper, Vice President of Research at Fidelity Digital Assets, delivered a speech at the Strategy World 2025 conference, urging companies to reassess their considerations of risk, capital allocation, and long-term financial health. He pointed out that Bitcoin's compound annual growth rate over the past decade reached 79%, far surpassing the nominal return rate of 1.3% for investment-grade bonds, proving it to be not just a speculative asset but a strategic reserve. He emphasized that companies need to reevaluate risk and capital allocation as inflation and currency depreciation are threatening balance sheets, with traditional safe havens like U.S. Treasuries now yielding negative real returns.

Addressing the controversy over Bitcoin's volatility, Kuiper proposed position adjustments and long-term strategies, suggesting that companies allocate 1-5% of their assets to Bitcoin to enhance risk-adjusted returns and limit drawdowns. He also cited Microsoft as an example, noting that if excess cash is considered, its return on invested capital (ROIC) would drop from 49% to 29%, highlighting the inefficiency of cash. He concluded by stating that companies should focus more on the balance sheet rather than just the income statement, and that Bitcoin can transform idle cash into productive assets, posing the question to executives: "Can your opportunities outperform Bitcoin?"