Investing in Cryptocurrency: Strategies for Business Leaders

Deloitte surveyed 200 finance chiefs at major corporations. Almost a quarter expect to use crypto for company investments or payments within two years. Only 1% said they do not envision using cryptocurrency for business functions over the long term.

For executives today, the question is no longer whether to consider crypto, but how to approach it responsibly, within a disciplined treasury framework. To do this effectively, leaders must first understand the strategic drivers behind the asset class.

Treasury Strategy Considerations

Companies don't buy crypto just to gamble. There are practical reasons tied to protecting cash, spreading risk, or improving operations.

Inflation hedge: Bitcoin has a hard cap of 21 million coins. When inflation eats away at cash sitting in corporate accounts, Bitcoin's fixed supply becomes an attractive hedge.

Portfolio diversification: Bitcoin doesn't always move with stocks and bonds. During market panics, everything tends to drop together. But over full market cycles, Bitcoin often zigs when traditional assets zag.

Yield generation: Some companies generate income from their crypto. PayPal's PYUSD stablecoin offers approximately 4.25% APY on platforms like Spark. That beats most corporate checking accounts.

Payment innovation: Companies like Block built Bitcoin into their business model. Faster settlement, lower fees, and more payment options for customers. It's not just an investment for them.

How Companies Are Actually Doing It

Most corporate treasuries use Bitcoin ETFs. This approach skips the technical headaches of managing wallets and securing private keys. You work with familiar investment structures instead.

ETFs give you daily reporting, audited financials, and custody through a regular broker. The fees are reasonable. There might be small tracking differences from actual Bitcoin prices, but ETFs work like any other fund in your portfolio.

Direct ownership is more complicated. You need multi-signature wallets that require multiple people to approve transactions. Most holdings stay in cold storage offline. Access gets controlled based on who's authorized to do what.

Strategic Allocation Approaches

How much should you allocate? Morgan Stanley offers guidance based on corporate risk profiles.

Conservative portfolios: Morgan Stanley recommends zero crypto exposure for truly conservative corporate portfolios. The volatility doesn't match conservative treasury objectives.

Moderate to aggressive growth portfolios: For companies pursuing growth, Morgan Stanley suggests limiting crypto exposure to 2%-4% of the portfolio. At this level, you get some diversification without threatening core operations.

Beyond 4%: Some companies like Strategy Inc. (formerly MicroStrategy) go much higher. But these are exceptions with unique risk tolerances and business models. Most companies shouldn't try to replicate this approach.

Risk Management Requirements

Crypto needs real risk controls and clear rules about who does what.

Actively managing your position beats buying and forgetting about it. Set internal policies on who can buy, how it's stored, and who approves transactions.

Tax planning matters. Crypto counts as a capital asset. In corporate structures, losses only offset gains. You can't use crypto losses to reduce your regular income taxes.

Accounting gets messy. Under FASB’s new fair value rules (effective since 2025), crypto holdings get marked to market at each reporting period. Price goes up, you show a gain. As prices go down, you show a loss. This creates swings in your earnings reports.

Security is everything. Even the best systems get hacked. Back up your private keys offline. Store them somewhere fireproof. Get regular security audits from outside experts.

The Bottom Line for Business Leaders

Crypto went mainstream. ETFs made it easy to buy. Regulations are getting clearer. But it's not for everyone. The volatility is real. A $10,000 position could drop to $3,000 in a year. That's happened before. If your company can't stomach that, stay away.

Just don't treat it like speculation.

You need clear rules. Good custody setup. Strict limits on how much you'll allocate. And a plan for what happens when prices tank.