Crypto on the balance sheet
Bitcoin on the balance sheet
Treasuries traditionally hold cash, deposits and short government paper. Since 2020 companies have added bitcoin — now a category of its own, including European listings.
The motives
Purchasing-power protection for idle cash with a fixed issuance asset.
Positioning: the share becomes an exposure vehicle for investors who cannot hold crypto directly.
Operational: miners and crypto businesses simply retain part of their revenue in coin.
How it is actually run
Custody uses regulated custodians and multisig with auditable procedures, not a single hardware wallet.
Purchases run over OTC desks in tranches to avoid moving the order book.
Governance separates strategy from gambling: a mandate, a maximum share of the balance sheet and board approval.
What it means for shareholders
You buy the operating business plus a leveraged coin position; the share usually moves more than the coin.
Premiums to net asset value can evaporate once spot ETPs are widely available.
Ask whether the operation works without the coin and whether the balance sheet survives a 70% drawdown.
Frequently asked questions
Is it the same as an ETP?
No — debt, costs, tax and management decisions are added.
How much is too much?
When the coin position dwarfs operating profit, price drives the company.
Do European firms do this?
Yes, usually smaller and more often funded from cash flow.
Read next
Analysing treasury stocks
How to value a company holding crypto: net asset value per share, premium, dilution from issuance and the quality of the underlying business.
Crypto in the annual report
How bitcoin appears in financial statements: intangible asset or fair value, what flows through profit and loss, and which notes to read.
Treasury risks
Where treasury strategies break: maturities, collateral calls, forced selling and boards that lean on one person.