Bitcoin Treasury

Definition ∞ A Bitcoin treasury is a corporate or institutional reserve of Bitcoin held as part of its financial assets. This strategy involves companies converting portions of their traditional cash reserves into Bitcoin, viewing it as a store of value and a hedge against inflation. Such holdings are typically managed with specific investment policies and security protocols. It signifies a strategic allocation decision to diversify organizational balance sheets.
Context ∞ The trend of companies adopting Bitcoin for their treasuries frequently generates news, impacting market sentiment and discussions around corporate crypto adoption. Debates persist regarding the volatility and accounting treatment of these digital asset holdings. Analysts closely monitor these corporate acquisitions as indicators of Bitcoin’s growing institutional acceptance.