Key Takeaways
- Crypto treasury permits companies to keep Bitcoin, Ethereum, or stablecoins as corporate reserves as an alternative to (or in addition to) cash.
- The balance sheet of the public companies now carries more than 130 billion of the crypto.
- Potential rewards include better inflation protection and higher returns than bank deposits.
- Smart companies don’t just hold assets; they actively use their money through crypto loans, staking, and DeFi to keep the treasury productive.
Let’s get down to details now.
What is Crypto Treasury?
Crypto treasury is just what it sounds: a corporate reserve fund, which contains not only dollars, Euro or bonds, but also cryptocurrencies. The most popular ones are Bitcoin, Ethereum, and dollar-based stablecoins, such as USDC or USDT, which change almost never. Its purpose is similar to any business cash hoard: to have money available to cover payroll, investments, acquisitions or emergencies. The difference is that these assets can grow in value and even pay interest while they sit there.
MicroStrategy is the first player to initiate the trend in 2020 when they exchanged billions of dollars with Bitcoin since they thought that cash was losing its buying power. They have more than 640,000 BTC, which are currently worth tens of billions. Tesla, Coinbase, Block, and other Bitcoin mining firms were soon playing by the same book. The total of digital assets is about $133 billion across all publicly owned companies. Certain companies just purchase and hold, when others receive additional yield in staking crypto.
How Crypto Treasury Management Works
Running a crypto treasury follows a clear process that most companies repeat.
First comes buying the assets. The spare cash is used by businesses with the issuance of convertible debt or new shares. New coins are offered to bitcoin miners as a reward to ensure the network is secured. After buying, the coins require solid storage. Institutional programs use multi-signature wallets that require several team members to approve any movement, plus cold storage that stays completely offline. Advanced setups split private keys across multiple parties so no single breach can empty the treasury.
Day-to-day management means watching prices in real time, lending stablecoins for interest, staking Ethereum for 3–5% annual rewards, or swapping small portions into dollars when cash is needed. Everything gets recorded with proper accounting software so quarterly reports and taxes stay accurate. Clear internal rules decide who can trade, how much risk is acceptable, and when to take profits or add more.
This is similar to how savings accounts work, for example, at CoinRabbit you can not only store your assets, but also deposit them to generate additional interest. Interest accrual is calculated daily, resulting in an annual APY of 5%.
Curious about crypto market? Read about taxes on crypto gains and best Zcash wallet in our recent articles.
How Crypto Treasury Differs from Traditional Treasury Management
Traditional treasury management is predictable and slow-moving. Companies keep cash in bank accounts, buy short-term government bonds, or invest in money-market funds that pay 4–5% at best. Transfers between countries go through banks and can take days with high fees.
Crypto treasury operates 24/7 on blockchains. Sending $50 million across borders costs a few dollars and settles in minutes. Different kinds of assets may yield in the range of doubles with lending and staking. It comes at the cost of volatility: cryptocurrency could fall 30% within a week, which is hard to imagine with high-grade bonds. Even accounting regulations do not treat crypto the same, requiring companies to recognize paper losses when they are intending to keep it permanently. Businesses in return acquire speed, increased returns, and direct control without middlemen in exchange of accepting these challenges.
| Feature | Traditional Treasury | Crypto Treasury |
|---|---|---|
| Main assets | Cash, bank deposits, government bonds | Bitcoin, Ethereum, stablecoins |
| Settlement speed | 1–5 business days (SWIFT, ACH) | Minutes, 24/7 |
| Transaction cost | $20–$100+ for international wires | Pennies to a few dollars |
| Inflation protection | Weak (cash loses value every year) | Strong (Bitcoin supply is fixed) |
| Volatility | Very low | Depends on the currency, but 30%+ swings are possible |
| Custody responsibility | Bank or broker takes care of it | Company is fully responsible |
| Typical yield | 0–5% (money-market funds, T-bills) | 3–15% (staking, lending, DeFi) |
Best Crypto Treasury Practices
- Start with diversification. Combine Bitcoin for long-term growth, stablecoins for day-to-day stability, and only a modest allocation to proven altcoins. This approach spreads risk effectively without chasing the latest trends.
- Make security the top priority. Use multi-signature wallets and insured institutional custodians, conduct regular team training on phishing and social-engineering attacks, and establish clear governance rules that define who can approve transactions and require quarterly policy reviews.
- Generate yield intelligently. Stake Ethereum for 3–5% annual returns or lend stablecoins, always locking rates where possible to reduce volatility exposure. Monitor all the positions in real-time and integrate the data with the accounting software to report on taxes smoothly.
- Preserve liquidity at all times. Keep 20–30% of the treasury in high-quality stablecoins so the company can cover unexpected expenses or convert to fiat quickly without forcing sales during market dips.
Read about modern strategies of how can You Buy a House with Bitcoin or discover real crypto portfolio examples that deliver results in our blog.
Pros and Cons
| Pros | Cons |
|---|---|
| Strong inflation hedge (Bitcoin as digital gold with fixed 21 million supply) | Sharp price drops can create short-term liquidity stress |
| Higher yields than cash or bonds (3–15% via staking, lending, DeFi) | Hacking and theft remain possible despite better tools |
| 24/7 global payments with near-zero fees | Regulations change fast and vary by country (SEC, IRS, EU MiCA) |
| Attracts investors and boosts share price when done transparently | Current accounting rules can show large paper losses |
| Full control and transparency via blockchain | Operational issues if private keys are lost |
Manage Your Assets Smart with CoinRabbit
Instead of simply holding crypto, you can put it to work with crypto-backed loans and get liquidity for business development. Let’s look at this case: in early 2025, an $18M ARR SaaS company with $4.2M in Bitcoin and Ethereum needed $2M for hiring and product development. Instead of selling crypto or raising dilutive equity, it borrowed $2M in stablecoins against its holdings at 65% LTV and 17.68% interest. The loan helped pay for a new AI feature that boosted ARR by 28%, and at the same time the collateral increased in value by 62%. One year later, the company repaid the loan from cash flow and kept its now $6.8M crypto stack, turning a passive treasury into active growth capital without selling or dilution.
How does it work at CoinRabbit? You deposit your crypto as collateral in crypto loan (300+ coins are accepted) and get stablecoins or other assets in just 10-15 minutes without any paperwork or credit history checks. After that, you can put the borrowed capital to work: reinvest in product development, manage operating expenses, or take advantage of market opportunities. All while your original assets remain secure in a cold storage and continue to appreciate.
What makes CoinRabbit a special platform:
✅ Flexible Terms
Borrow for short (up to 30 days) or long periods with an open end. Adjust LTV and deposit your crypto at a stable, predictable interest rate.
✅ Fixed Interest Rate
Your rate stays the same throughout the loan. No surprise APR changes, no hidden charges and liquidation only happens if your asset value falls below the safety limit.
✅ No Rehypothecation Policy
Your crypto stays safely stored in cold wallets and is never lent out or used for any external operations.
✅ Auto Increase Option
Enable it once, and the system automatically adds collateral when your loan approaches the liquidation threshold, which keeps your position protected without any action required from you.
✅ 24/7 Customer Support
A live support manager is always available to help you with any questions related to your assets.
✅ Full Ownership of Your Assets
Your assets remain yours at all times. Once you repay the loan, you get back the entire collateral along with any value growth.
The information provided in this article is for educational and informational purposes only and should not be construed as financial advice. Cryptocurrency investments carry a high level of risk, and it is essential to conduct thorough research and consult with a qualified financial advisor before making any investment decisions. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any financial institution or organization. We do not take responsibility for the platforms we recommend. Always invest responsibly and consider your individual financial situation before making investment choices.
Last Updated on November 24, 2025 by Dan Marsh
