Strategy promotes a new financial standard with Bitcoin

More and more companies are analyzing the possibility of adding Bitcoin (BTC) as a reservation asset to their treasury.

This trend underlines the urgency of reinventing corporate finances to align them with Bitcoin’s potential as a strategic pillar.

Phong Le, CEO of Strategy, talked about this challenge during his exhibition in “Bitcoin for Corporations“And he remarked:” Each of these issues is affected by BTC or affects BTC. “

For the Executive, the currency created by Satoshi Nakamoto is not a financial asset, but a “transforming force” that impacts and redefines all aspects of corporate finances.

“We need a new standard. BTC can no longer be ‘bitcoin’ … now it means Bitcoin Treasury Company (Company with Treasury in Bitcoin, in Spanish). It is a company that adopts BTC as a central asset in its financial strategy. For this model to work, we need to rewrite each principle of traditional corporate finances, ”he said.

Phong points out that traditional metrics such as Earnings per action (EPS) are no longer enough to evaluate companies (as Strategy) that have BTC at the center of their financial strategy.

As Cryptonoticias has reported, Strategy is the Business Intelligence Software and Data Analysis directed by Michael Saylor, recognized for its aggressive investment in BTC.

Currently, it is the public contribution company with more holdings in the currency created by Satoshi Nakamoto as a reserve asset.

According to data from the Bitcintreasuries explorer, the company has 555,450 BTC. “We are writing the book as we advance. I think it will be the book that people will read and teach in 20-30 years,” said Phong Le.

Therefore, a new set of key performance indicators (KPI) is proposed specifically designed for this type of companies: BTC yield, BTC gain and dollar gain in BTC.

BTC yield measures the performance that a company generates on its holdings in the digital currency, for example, if you obtain additional income through loans or financial strategies.

BTC gain reflects how much the amount of BTC that the company has over time grows, regardless of its price.

Finally, the dollar gain in BTC represents the increase in value in dollars of these holdings, functioning as a kind of net income linked to the assessment of the asset.

In this regard, Phong highlighted: “So that the Bitcoin Treasury Companies work, we need to educate the world about what are the KPI and the relevant metrics. Traditional metrics do not capture the real value generated by a company with BTC. That is why we are building a new framework: if we want transparency, precision and just access to financing, we have to change the way in which we measure the way in which we measure the way in which we measure the way.

In that sense, he raised:

“Today, each issue in corporate finance needs to be rewritten. From the asset valuation to the capital allocation, everything must incorporate the impact of BTC. It is not just about having BTC in the balance, but about how to evaluate, manage and use that asset effectively to create value.”

Phong Le, CEO of Strategy.

The integration of BTC as a strategic asset in corporate treasury is not only an emerging trend, but a complete reconfiguration of how companies perceive and manage their capital.

Unlike other assets, BTC is capturing the attention of companies and governments for their unique characteristics.

In fact, many investors consider that BTC is “digital gold”, for its similarities with precious metal.

Bitcoin is a decentralized currency and resistant to censorship by governments or financial entities. Its broadcast is limited to 21 million units, and is reduced every 4 years in an event known as Halving. In addition, it is not constantly devalued by the excessive broadcast and monetary policies of the central banks.

Finally, and no less relevant, it should be noted that its inherent shortage is what is attracting the interest of institutions, governments and small investors.