Treasury Management

Blockrise offers companies and institutions an approach to expand their Treasury Management with Bitcoin. Treasury Management is built on Blockrise’s proprietary custody software, keeping the Treasury Management of clients’ Bitcoins separate in individual treasury wallets.

What is Bitcoin Treasury Management?

Bitcoin treasury management refers to the strategic acquisition, custody, and oversight of Bitcoin held on a company’s balance sheet. As a cryptocurrency with unique monetary properties, Bitcoin offers corporates a way to manage liquidity, hedge against inflation, and diversify their financial reserves. Blockrise provides end-to-end Bitcoin treasury solutions, designed to align with your organisation’s financial strategy and regulatory requirements.

Why do companies hold bitcoin in treasury?

Diversification

Bitcoin exhibits minimal long-term correlation with traditional asset classes, including equities and fixed income. This low correlation can mitigate exposure to systemic risks and macroeconomic shocks. Historically, Bitcoin has demonstrated resilience during periods of financial instability.

Inflation protection

Unlike fiat currencies, which can be debased by monetary expansion, Bitcoin’s supply is fixed at 21 million. This scarcity makes it an effective hedge against inflation and currency devaluation.

Performance potential

Over the past decade, Bitcoin has outperformed all major asset classes in 7 out of 10 years, with an annualised return exceeding 100%. Despite periodic volatility, its long-term growth trajectory has made it an increasingly compelling store of value.

Liquidity

Bitcoin is traded globally on a 24/7 basis, with settlement times far shorter than those of traditional banking systems. This makes it a highly liquid and versatile asset, suitable for both active treasury management and long-term reserves.

Interest rate Environment

The dual impact of interest rate fluctuations, whether low or high, can challenge traditional treasury approaches. Bitcoin offers a complementary asset that is independent of central bank policies and interest rate adjustments.

Risk management with a bitcoin treasury

Corporations, such as companies and institutions, are continuously exposed to macroeconomic and geopolitical shocks. Due to the low correlation of Bitcoin with traditional assets in Treasury management and unique properties, it potentially reduces risk in several ways.

RiskDescriptionBitcoin as potential solution
Low interest rate riskCash becomes unproductive and traditional hedging methods become less effectiveBitcoin offers assymetric upsdie potential without yielding obligations, making it a viable laternative in zero or negative rate environments.
High interest rate riskCost of borrowing rises; legacy debt servicing become burdensomeAs a non-yielding, largely uncorrelated asset, Bitcoin may help reduce exposrue to interste rate-sensitive instruments
Foreign exchange riskVolatility in currency markets impact multi-national revenues and cost bases.Bitcoin can serve as a bridge asset, reducing reliance on multiple fiat currencies and lowering FX transaction costs
Credit riskCounterparty default risk in lending, trade finance, and fixed-income investmentsBitcoin's liquidity, portability, and non-sovereign nature allow it to be used as high-quality collateral in credit transactions.
Liquidity riskDifficulty meeting short-term obligations may force asset sales under distressed conditionsBitcoin-backed lending markets provide an avenue for accessing liquidity without liquidating long-term holdings, maintaining exposure while meeting payment obligations.
Inflation riskCash holdings lose purchasing power as the real value of money declinesBitcoin's fixed supply and predictable issuance schedule provide an inflation-resistant store of value, helping to preserve capital over time.

Bitcoin Treasury Management with Blockrise

All products of Blockrise are built on the core principles of our custody solution. Namely, client assets are always fully segregated per service using individuals wallets. In addition, clients maintain ownership over their bitcoins as they retain full control.

Core principles of Blockrise Treasury

Bitcoin custody

Blockrise is supervised and registered by the Dutch Central Bank (DNB). This regulatory oversight ensures transparency, security, and adherence to the highest industry standards.

Client-owned wallets

Client assets are never pooled at Blockrise. Each client is assigned individual wallets for which they retain control. By default, Blockrise cannot access client wallets, nor repurpose client assets.

Rebalancing as desired

Upon client instructions, we can execute portfolio rebalancing on a regular basis to align Bitcoin holdings with your treasury policy and target allocation thresholds.

Dedicated account management

Our selective client base allows us to deliver premium, white-glove service. Each treasury client is assigned a dedicated account manager to provide proactive support and strategic advice.

Frequently Asked Questions

  • How does Blockrise manage wallets in Treasury?

    For each product you use, a dedicated wallet is generated with full control. You retain sole ownership of your treasury wallet. However, if needed, you can request that Blockrise access the wallet to assist with specific actions. For more details please be referred to the Blockrise Wallet.

  • What if I want to sell my Bitcoin in treasury or reallocate?

    You are always in control of your bitcoin held in treasury. Blockrise provides the infrastructure to manage your assets securely, while ownership remains with you. This means you can sell or reallocate your Bitcoin at any time. For more details on the applicable service fees, please refer to our pricing.

  • How do I integrate Bitcoin in my existing Treasury Management?

    Treasury Management is guided by your company’s financials. Based on your predefined bitcoin exposure, Blockrise will automatically rebalance your holdings to align with your target allocation.

  • Can I choose how frequently my Treasury is rebalanced?

    Your bitcoin exposure is adjusted according to your chosen preference, quarterly being the most frequent, and yearly the least. This allows you to align your Treasury strategy with your company’s financial strategy and risk appetite.

  • What’s the minimum Bitcoin allocation I need to start?

    There is no minimum requirement for your Bitcoin exposure. A starting allocation could for example be 1% of your financial assets, which can be increased based on your company’s strategy and risk preference.

Our proven approach

1. Personalised introduction

We will discuss your financial goals, risk tolerance, and investment preferences in a tailored meeting, ensuring our solutions align precisely with your needs.

2. Simple account setup

Our streamlined account opening process is easy to follow, and our dedicated team is available to guide you every step of the way.

3. Start managing your bitcoin

Immediately begin buying, selling, and managing your bitcoin portfolio. Monitor your assets effortlessly through our intuitive Blockrise platform and mobile app.

Are you ready to join our bitcoin platform?

Secure your bitcoin and invest with Blockrise. Get started today.