Corporate cryptocurrency treasuries have seen a massive popularity surge over the last year. Bitcoin (BTC) and Ethereum (ETH) treasuries have played a substantial role in the current market cycle. According to BitcoinTreasuries, the top 100 BTC treasury companies hold about 1,017,656 Bitcoin, worth more than $118 billion. Michael Saylor’s Strategy leads the race with 638,985 BTC.

Why The Rush For Bitcoin (BTC) and Ethereum (ETH) Treasuries?

Bitcoin (BTC) is the best-performing asset of the last decade and a half. The original crypto has outperformed major tech stocks, gold, and other commodities. It has even far surpassed the S&P 500 and the Nasdaq’s returns. BTC’s unrivaled growth may have been one reason for the surge in the creation of BTC treasuries.

While some companies are flocking to Bitcoin (BTC) for its value, others are more interested in the underlying technology.

Also Read: Michael Saylor Calls Bitcoin “Digital Capital”, MSTR Stock Rallies

There is another factor that could be pushing companies into hoarding up on Bitcoin (BTC) and Ethereum (ETH), which is the risks to the US dollar. The growing US debt has caused significant worry among investors and financial experts. BlackRock CEO Larry Fink highlighted that the US dollar may not remain the global reserve currency forever. Fink said that digital currencies like Bitcoin (BTC) could take the mantle from the dollar in the future. The recent spike in BTC and ETH treasuries could be a response to the threat of a falling US dollar.

Risks To Crypto Treasuries

Despite the growing popularity of Bitcoin (BTC) and Ethereum (ETH) treasuries, there are still risks that companies must navigate through. According to a report by K33, one-fourth of all public companies that hold BTC trade at market values below the worth of their holdings. The development could mean that the trend may be cooling off.

However, the rate of Bitcoin (BTC) adoption among corporate entities is expected to continue growing.