Q&A with our CPO Valentin Vincendon

What are the benefits of holding Bitcoin on your balance sheet? 

Some corporates, particularly those operating across multiple jurisdictions, are receiving a portion of payments in Bitcoin because their clients prefer it. In these cases, firms can hold Bitcoin within treasury and use it to settle with suppliers who also accept it, avoiding repeated conversions into fiat currencies and the associated FX risk.

In that context, Bitcoin can reduce friction in cross-border flows and act as a neutral settlement layer. Although it is often regarded as an inflation hedge, we believe its primary value for corporates is how it supports more efficient treasury and payment flows.

What about the volatility and downside risks of Bitcoin? 

Bitcoin has always been volatile, and corporates entering the space tend to account for that upfront. A more recent challenge has been periods of sustained price weakness rather than short-term volatility. 

That said, firms using Bitcoin primarily for transactions rather than as a treasury reserve asset are typically less exposed, as they are not holding large directional positions over extended periods.

How are companies accounting for Bitcoin on their balance sheets?

Accounting remains a grey area across many jurisdictions. Bitcoin is typically treated as an intangible asset, which can create asymmetry in how gains and losses are recognised. 

Where exposure is material, companies have had to adapt internal policies accordingly, but this is still an evolving area.

How can companies manage risks such as overleveraging and valuation mismatches?

The bigger risk tends to be how Bitcoin is used, rather than Bitcoin itself. Overleveraging or valuation mismatches can arise when it is treated as a speculative treasury strategy. 

Where firms keep exposure proportionate and aligned with payment flows, those risks are generally more contained.