On November 20, 2024, Hoth Therapeutics, a Nasdaq-listed biopharmaceutical company, said it will purchase $1 million in Bitcoin to create a corporate treasury reserve. The move was taken on the insistence of the company in a bid to diversify the balance sheet and add new financial assets.
The latest institutional player to adopt Bitcoin as a reserve asset, Hoth Therapeutics is just the latest example of a company embracing the digital asset. While the amount put towards the purchase is not significant in comparison to much larger institutional buys, it represents continued institutional interest in Bitcoin as it relates to its potential as a store of value and inflation hedge.
MicroStrategy Expands Bitcoin Holdings, Hoth Follows
Bitcoin’s move follows new all-time highs (ATHs) for the digital currency above $94,000 after the Nov. 5 U.S. presidential election victory of Donald Trump. It has now beaten the market capitalization of Saudi Aramco and silver and has even managed to better the combined market cap of Visa and Mastercard.
“When you look at how institutional investors are adopting Bitcoin and having their money be viewed as a strong treasury reserve asset, there was really great reason to make a decision to acquire Bitcoin,” said Robb Knie, CEO of Hoth Therapeutics. Bitcoin’s potential to help safeguard against economic uncertainty was a crucial factor in the company’s decision to also align with the currency, said Knie.
Hoth’s CEO added:
“With recent approval of Bitcoin ETFs and increasing activity from institutional investors, it is a strong addition to our treasury strategy. We believe its inflation-resistant characteristics may make it a reliable asset as a functional store of value.”
Bitcoin’s rise has been spurred by wider market optimism, especially after Donald Trump won re-election, as well as expected regulatory tweaks at the U.S. Securities and Exchange Commission (SEC). Continued attempts in the U.S. to create a strategic Bitcoin reserve, with Senator Cynthia Lummis proposing the U.S. reinvent its gold reserves into acquiring Bitcoin, are reinforcing this growing bullish sentiment.
On the heels of moves like MicroStrategy, which just further expanded its Bitcoin balance sheet by adding $4.6 billion worth of the cryptocurrency, the payments giant’s acquisition of Hoth is coming.
With Bitcoin gaining mainstream attraction, it’s no surprise that online medical shop Hoth Therapeutics chose to buy into the cryptocurrency, anticipating its potential for long-term growth and safety in a changing financial setup.
