How can companies hold Bitcoin on their balance sheet?

Summary

Companies can hold Bitcoin on their balance sheet by buying spot BTC directly, investing through spot Bitcoin ETFs, or retaining mined Bitcoin as inventory. Firms evaluating Bitcoin for treasury should weigh the different methods to buy and sell, the platform experience, the custody models and the service the company offers. iTrustCapital offers Treasury Accounts to enable entities to allocate treasury funds to crypto and precious metals through a streamlined platform.

Companies Holding Bitcoin on Their Balance Sheet

Companies can hold Bitcoin on their balance sheet by purchasing it directly with corporate cash reserves, gaining exposure through spot Bitcoin ETFs, or retaining mined Bitcoin as inventory. Each method carries distinct considerations that organizations, including businesses, trusts, and non-profits, should evaluate as part of a broader treasury diversification strategy. As of August 2025, public companies collectively held 997,451 BTC worth approximately $113 billion, signaling growing institutional confidence in Bitcoin as a strategic treasury asset. iTrustCapital offers Treasury Accounts that enable entities to allocate treasury funds to crypto and precious metals through a streamlined platform.

What is the strategic rationale for holding Bitcoin in the corporate treasury?

Corporate treasury management is the practice of managing an organization's cash, liquidity, and financial assets to support operations, preserve capital, and pursue strategic growth, typically overseen by a CFO or treasurer. Organizations increasingly evaluate Bitcoin as a treasury asset for several reasons.

Diversification beyond traditional cash, bonds, and money-market instruments represents a primary motivation. Corporations often use Bitcoin to diversify treasuries and preserve capital against inflation risks, according to Anchorage Digital research. Strategic signaling to investors and stakeholders about a forward-looking financial philosophy also plays a role in treasury decisions.

The scale of institutional adoption reflects this growing interest. Public companies' crypto market capitalization grew to approximately $160 billion in 2026 from roughly $90 billion at the start of 2024. Institutional adoption accelerated after 2024 developments, making Bitcoin a strategic treasury option for a broader range of entities.

How do companies choose the right Bitcoin exposure method?

Three primary pathways exist for holding Bitcoin on a balance sheet, each suited to different organizational structures and objectives.

Direct purchase

Strategy (formerly MicroStrategy) pioneered the corporate Bitcoin treasury playbook in August 2020 under CEO Michael Saylor. The company has since become the benchmark for aggressive accumulation, holding an estimated 687,410 BTC by early 2026, representing more than 3% of the total 21 million Bitcoin that will ever exist. Strategy funds its purchases through a mix of equity issuance, convertible notes, and at-the-market (ATM) offerings, creating reflexive feedback loops where rising BTC prices lift share prices, which in turn enable additional capital raises and further BTC purchases.

Software platforms for direct purchase

iTrustCapital's Treasury Account offers a secure, institutional-grade solution for businesses (corporations, LLCs, S-Corps, partnerships), trusts, and non-profits to buy, sell, and hold digital assets on their balance sheet as part of their treasury strategy. The platform provides 24/7 access to 85+ cryptocurrencies and physical precious metals, including Bitcoin, Ethereum, XRP, and Solana, with a 1% transaction fee, $0 setup and monthly fees, and a $1,000 minimum to open. Funding is available via bank wire or in-kind crypto deposit, with USD withdrawals to the entity's U.S. bank account on record. Downloadable transaction histories and gain/loss reports streamline audit-ready tax filings.

Spot Bitcoin ETFs

A spot Bitcoin ETF is an exchange-traded fund that directly holds physical Bitcoin, allowing investors to gain price exposure through traditional brokerage accounts without managing private keys or crypto wallets. ETFs are often the simplest way for companies to add Bitcoin to a balance sheet; 11 spot BTC ETFs began trading in U.S. markets in early 2024. ETFs simplify custody, tax, and reporting because they function as regulated investment products with clearer accounting treatments.

Mining and retention

Marathon Digital had amassed 47,600 BTC (approximately $4.5 billion) through mining and purchases, with updated holdings of 50,639 BTC as of August 18, 2025. Marathon cited opportunistic buys after price declines, including a $100 million purchase in 2024.

What custody options exist for corporate Bitcoin holdings?

Crypto custody refers to the safekeeping of digital assets, including the secure management of private keys that control access to Bitcoin on the blockchain. Organizations holding Bitcoin directly must evaluate several custody models.

Third-party institutional custody

Regulated custodians hold keys on behalf of the entity.

Advantages:

Professional security infrastructure
Insurance coverage
Regulatory compliance support
Audit trails for reporting

Considerations:

Counterparty dependency

Platforms such as iTrustCapital utilize third party institutional storage providers to secure clients’ crypto assets.

Self-custody

The organization manages its own private keys, typically using multisig wallets and air-gapped hardware.

Advantages:

Maximum control over assets
No counterparty dependency
Potential cost savings

Considerations:

Requires sophisticated internal expertise
Higher operational burden
Key management complexity

Hybrid model

Many firms use a combination, keeping a portion with a custodian and retaining partial self-custody for operational flexibility. Key custody choices include custodial third-party custody versus self-custody, and many firms adopt this hybrid approach.

What are best practices for purchasing and reporting Bitcoin on the balance sheet?

Two primary acquisition strategies exist for organizations adding Bitcoin to their treasury.

Dollar-cost averaging (DCA) spreads purchases over time to reduce the impact of volatility. This can be a more accessible corporate entry strategy to accumulate Bitcoin.

Lump-sum purchase deploys a defined allocation at once, often when an organization has strong conviction on timing or price levels.

Real-world examples illustrate different approaches. Block held 8,038 BTC as of March 31, 2024, representing about 9% of its cash, cash equivalents, and marketable securities—demonstrating a measured allocation approach. Tesla and SpaceX added Bitcoin in 2021, later sold most holdings, but still hold a combined approximately 19,700 BTC.

Steps for a first Bitcoin allocation

Define the strategic rationale and allocation percentage
Select the exposure method (direct, ETF, or other)
Choose a custody model and set up infrastructure
Execute the purchase strategy (DCA or lump sum)
Establish a reporting schedule for stakeholders

How does iTrustCapital support Bitcoin allocation for companies and entities?

iTrustCapital offers Treasury Accounts designed for entity-level participation, enabling businesses, trusts, and non-profits to allocate treasury funds to crypto and precious metals.

Eligible entity types

Corporations and LLCs
Trusts (revocable and irrevocable)
Non-profit organizations
Other eligible entities

Key features

Streamlined onboarding for entity accounts
Access to Bitcoin, other digital assets, and precious metals (gold, silver) within a single platform
24/7 availability for crypto assets

The benefits of Treasury Accounts includes a unified platform for digital asset treasury management that consolidates custody relationships.

Organizations deciding whether and how to hold Bitcoin should consider the method they choose to buy and sell, custody, accounting, governance, and reporting needs against their strategic objectives; platforms focused on entity accounts can simplify access and custodial consolidation.

Open a Treasury Account at iTrustCapital.

Frequently Asked Questions

Where do companies buy and sell Bitcoin?

Most companies use institutional custody but there are other methods, like self-custody or a hybrid method. However, the choice usually comes down to how much capability a company has and how comfortable they are to manage their digital assets. If companies want to start buying and selling Bitcoin, they can do so through iTrustCapital's Treasury Account. Treasury Accounts offers a secure, institutional-grade solution for businesses (corporations, LLCs, S-Corps, partnerships), trusts, and non-profits to buy, sell, and hold digital assets on their balance sheet as part of their treasury strategy.

How is Bitcoin reported on the books?

Under new accounting rules (ASU 2023-08), most companies now report Bitcoin at fair value, meaning gains and losses flow through the income statement every reporting period. Before 2025, Bitcoin was classified as an intangible asset and could only be marked down for impairment, never up, which often made balance sheets look worse than reality. The new rule gives a more accurate picture of what a company's Bitcoin is actually worth at any given time. Mining companies still classify mined Bitcoin as inventory at the lower of cost or market value. Financial firms generally report at fair value under existing guidance.

Can a company buy a Bitcoin ETF instead?

Yes, companies can buy spot Bitcoin ETFs, but it's important to understand they aren't actually purchasing Bitcoin. They're buying shares of a fund that holds Bitcoin, which means the company owns a financial product tied to Bitcoin's price rather than the asset itself. Spot Bitcoin ETFs launched in the U.S. in January 2024 and offer a simple way to gain price exposure through a normal brokerage account, with no wallets or custody setup required. The tradeoffs are ongoing management fees, reliance on the fund issuer, and no ability to move or use the underlying Bitcoin. If you want to buy real Bitcoin for your company, you can do so through iTrustCapital's Treasury Account.

What rules should a company set before buying Bitcoin?

Most companies with a Bitcoin treasury start with a written policy that defines the purpose of the allocation, how much they plan to hold, and what triggers a buy or sell decision. Transaction authority is usually limited to specific people, with multi-person approval required for larger moves. Crypto activity typically gets folded into existing compliance and reporting systems instead of sitting in a separate workflow. Regular updates to leadership and auditors keep everyone aligned and simplify year-end reporting. Companies that establish clear rules early tend to avoid the issues that surface later as positions grow.

Categories:

Cryptocurrency

Disclaimer

This article is for informational purposes only and is not intended to constitute investment or tax advice in any way or constitute an offer to buy or sell any digital asset, cryptocurrency, or security or to participate in any investment strategy.

iTrustCapital is a fintech software platform for alternative assets. TrustCapital is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular digital asset, precious metal or investment strategy.

Investing in any digital asset or cryptocurrency (including meme coins) carries significant risks due to their speculative and highly volatile nature. Past performance is not an indication of future results. No investment is completely risk-free, and every investment carries the potential for losing some or all of the principal amount invested. Digital assets and cryptocurrencies are not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner.

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