More and more companies, like Jiva Technologies and SOS, are integrating Bitcoin into their treasury strategy, seeking to stand out and attract the attention of investors. However, this trend, although bringing opportunities, raises questions about its real effectiveness and its risks.
Jiva Technologies and SOS: Two new companies adopt Bitcoin
After Genius Group, Cosmos Health, Hoth Therapeutics and Acurx Pharmaceuticals, 2 new companies announce that they are integrating Bitcoin into their treasury strategy.
Following board approval, Jiva Technologies, a leader in creating niche wellness online communities and designing immersive physical environments, will be able to invest up to $1 million dollars into Bitcoin as part of its cash management strategy.
As Bitcoin continues to gain traction as a widely accepted and trusted asset class, we see a unique opportunity to strengthen our treasury with a resilient and innovative investment.
The Chinese company SOS did not skimp on resources, the board of directors approved its investment plan of 50 million dollars to buy Bitcoin. An investment that is easier to justify for a company engaging in blockchain and cryptocurrency operations.
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Once again, the speech presented in justification remains the same:
The potential for favorable regulatory frameworks and increased institutional adoption, highlighted by the recent wave of Bitcoin ETFs, underscores Bitcoin's value proposition and makes us believe it is an ideal asset for treasuries companies looking for inflation-resistant stores of value.
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In its press release, the SOS company also mentions aligning itself with the positive momentum currently enjoyed by the cryptocurrency market. A dynamic driven by a positive American political environment and growing institutional support for Bitcoin.
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The Bitcoin fad: Varied impact on businesses and the risk of superficial strategies
Recent announcements of companies integrating Bitcoin into their treasury strategy have often been seen as an attempt to stand out and capture the attention of investors.
However, while this tactic has proven beneficial for some companies like SOS, which saw an increase of more than 70% in the value of its shares in less than a day, it has not had the same impact for all .
For example, Jiva Technologies suffered a decline of almost 5% over the same period, raising questions about the effectiveness of this strategy when applied superficially.
Stock performance of Jiva Technologies and SOS companies according to Google Finance
Companies like Tesla and MicroStrategy have led the way in adopting similar strategies, setting a precedent and encouraging other companies to follow this trend.
But this fad presents significant risks. Some companies take this approach primarily to avoid being seen as lagging behind their competitors, without fully evaluating whether Bitcoin is an investment truly aligned with their long-term goals.
👉 In the news – Two biopharmaceutical companies allocate $1 million to Bitcoin
The results can be mixed, depending on how these companies communicate their commitment and, above all, their sector of activity. If a company launches without taking into account the particularities of its sector of activity, it could find itself suffering the consequences of a poorly thought-out strategy.
Thus, businesses and investors should ask themselves whether they are adopting Bitcoin as a true long-term investment strategy or simply for communication reasons.
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Sources: PR Newswire SOS; PR Newswire Jiva Technologies
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