Hoth Therapeutics, a biopharmaceutical company based in America but listed on Nasdaq, has revealed plans to invest about $1 million in Bitcoin to achieve its treasury reserve policy.
It emerged that the firm’s board of directors had endorsed the plans given that it would make Hoth the latest institution to adopt Bitcoin in its financing model.
Although smaller than other acquisitions, such as MicroStrategy’s billion-plus assets, the acquisition of Hoth indicates that institutions will continue to invest in Bitcoin. The cryptocurrency, widely expected to be a store of value and inflation hedge, has recently surged past $94,000 due to growing market sentiment and geopolitical elements.
Bitcoin Gains Institutional Support and Surpasses Major Market Capitalizations
Hoth Therapeutic’s Chief Executive Officer Robb Knie said that Bitcoin was seen from an institutional investor standpoint as a “strong treasury reserve asset.” Knie also pointed out that interest in cryptocurrency increased after Donald Trump won the 2024 presidential election in the United States.
Other regulators’ expectations for shifts in regulatory policies – for example, at the US Securities and Exchange Commission (SEC) – have also played an important role.
In the last few weeks alone, Bitcoin has gone a step ahead to achieve a market capitalization that has made it rank higher than silver or Saudi Aramco and the best overall asset. Larger than Visa & Mastercard Markets: It is now even more significant than the market values of two popular giants, Visa and Mastercard, which tells about its dominance in shaping the financial markets worldwide.
An Extended View of How Bitcoin Fits into Treasury Reserves
Hoth Therapeutics joins a growing list of companies using BTC for treasury, such as MicroStrategy, which recently increased its Bitcoin reserve by $4.6 billion. At the same time, plans to create a dedicated strategic reserve of Bitcoin for the United States are being prepared, supported by Senator Cynthia Lummis.
To this end, the proposal implies selling gold reserves to fund the buying of bitcoins, which indicates a change in the U.S. government’s fiscal policy.
With institutions slowly accepting Bitcoin and integrating it into their standard processes, Bitcoin cannot be ignored in terms of treasury management and financial planning. Hoth Therapeutics’ move can be seen as part of this trend and is another landmark in Bitcoin’s march to becoming valued like any other asset.
