The Institutionalization of Bitcoin Reserves: Insights from Cathie Wood of Ark Invest and Strive on Why Purchasing BTC is the Optimal Strategy

04/25/2025

Four Executives Gather to Discuss the Trend of “Bitcoin Inclusion in Corporate Financial Statements”

On April 25, executives and founders from four institutions—ARK Invest, Fold, 1031 VC, and Strive—convened to discuss the emerging trend of “Bitcoin inclusion in corporate financial statements.” The conversation spanned from MicroStrategy’s (Strategy) aggressive Bitcoin buying strategies to a more moderate “Bitcoin reserve account model.” The dialogue provided a comprehensive analysis of how different companies and strategies are approaching Bitcoin’s corporate adoption.

ARK’s Cathie Wood: Bitcoin in Corporate Financial Statements is Becoming a “New Normal”

Cathie Wood from ARK stated that the global reserve status of the US dollar is under significant challenge, with China’s foreign exchange reserves decreasing from $1.3 trillion to $700 billion being a clear signal. This has prompted many asset managers to seek hedging tools, with Bitcoin and gold becoming primary asset considerations. She cited examples such as:

Tesla
Square (now Block)
MicroStrategy (now Strategy)

These companies have incorporated Bitcoin into their balance sheets. Although they initially faced ESG controversies, Bitcoin has now transformed into an important role as an anti-inflation and hedging asset.

Strive CEO: AI is Transforming Business Structures, Companies Need to Hold “Scarce Assets”

Matt Cole, CEO of Strive, mentioned that AI has rendered many formerly profitable products worthless. He cited tax software TurboTax, which may be replaced by free AI models in the future, leaving companies unable to rely on these businesses for profit and forcing them to find new methods to preserve the value of their assets or profits. He believes Bitcoin is the “ultimate scarce asset,” suitable as the core of a company’s long-term capital allocation.

Fold CEO: Survived the Crypto Winter with Bitcoin, Now Entering a Leveraged Era

Will Reeves, founder of Fold, shared that the company survived multiple crypto winters before going public, relying on “Bitcoin reserves.” Now, they are considering ways to amplify assets through issuing bonds.

“For every new investment, the first question should be: Can this return beat directly buying Bitcoin?” he emphasized.

1031 Founder Odell: Private Companies Can Also Allocate as Long as They Have Sufficient Cash Flow

Odell stressed that Bitcoin financial strategies are not only suitable for publicly listed companies; even a small clinic or startup with stable cash flow can begin holding Bitcoin. He acknowledged that while private enterprises lack the operational space of public markets, they benefit from lower internal risk control and can diversify risks through multi-signature wallets.

Diverse Bitcoin Corporate Holding Models: Leveraging Strategies and ETF Alternatives

Many companies are now beginning to emulate MicroStrategy’s operations, issuing convertible bonds and building positions through spot Bitcoin ETFs to reduce management risks. However, there are opposing voices pointing out that MicroStrategy’s current stock price is 80% to 110% higher than its actual Bitcoin holdings. This “early adopter” aura could dissipate as more companies enter, potentially reversing into a discount in the future.

Educating Boards on Bitcoin is Key; National Units are Also Competing for Bitcoin

All four participants pointed out that many board members currently do not understand how Bitcoin operates, making education and institutional design the first steps to promoting holding policies. Strive CEO Cole predicted that the next phase would be the “sovereign nation race for Bitcoin.” ARK’s Digital Asset Director Lorenzo Valente also emphasized that Bitcoin has no counterparty risk and will stand out in the future amidst “de-dollarization” and sanction risks. However, whether startups, SMEs, large enterprises, or nations, all should begin to ponder one crucial question: “In this global trend of de-trust and de-dollarization, where is the safety of our assets?”

Risk Warning

Investing in cryptocurrencies carries high risks, with prices potentially experiencing significant volatility, and you may lose your entire principal. Please exercise caution in assessing risks.