Abra Introduces Abra Treasury Allowing Companies to Hold Cryptocurrency as Reserve Assets

Abra Introduces Abra Treasury, Empowering Businesses to Adopt Crypto as Reserve Assets


Ruholamin Haqshanas
Last updated:
July 1, 2024, 08:01 EDT
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2 min read


Abra, a platform specializing in digital asset prime services and wealth management, has launched Abra Treasury, a new service tailored for corporations interested in holding cryptocurrencies as reserve assets on their balance sheets.
According to a press release issued on Monday, the service will offer a comprehensive suite of solutions for digital asset treasury management, catering to corporates, family offices, and non-profits.
Operated by Abra Capital Management, an SEC-registered investment advisor, Abra Treasury integrates custody, trading, borrowing, and yield services. It enables clients to securely retain ownership and control over their cryptocurrencies through separately managed accounts.
Corporate Interest in Bitcoin Explored
In response to ongoing macroeconomic uncertainties such as rising inflation and geopolitical tensions, corporate treasurers are increasingly exploring Bitcoin (BTC) as a potential reserve asset.
MicroStrategy (MSTR), a publicly listed software firm led by Michael Saylor, notably holds the largest corporate Bitcoin reserve, accumulating 226,331 tokens since 2020.
Marissa Kim, Head of Asset Management at Abra Capital Management, pointed out the growing interest among non-crypto-native businesses in utilizing Bitcoin as a treasury reserve asset.
She highlighted a noticeable trend where business owners and CEOs of small to medium-sized enterprises, particularly in the real estate sector, are considering BTC purchases for treasury diversification or using BTC as collateral for business operations and real estate ventures.
“We are witnessing increasing interest from SMB owners and CEOs, especially those in real estate, who are exploring BTC acquisitions for treasury purposes or leveraging BTC for financing business initiatives and real estate projects, which was less prevalent in previous cycles.”
Abra and its CEO, William “Bill” Barhydt, recently settled with 25 state financial regulators, agreeing to reimburse up to $82.1 million in cryptocurrency to customers across the states involved.
Metaplanet Emulates MicroStrategy’s Bitcoin Approach
Inspired by MicroStrategy’s successful Bitcoin strategy, other public companies are now considering adding Bitcoin to their balance sheets.
In April, Metaplanet announced its decision to integrate Bitcoin into its treasury holdings, driven by several factors. Firstly, it aims to reduce exposure to the Japanese yen amid Japan’s low-interest-rate environment.
In a shareholder update, Metaplanet expressed concerns about yen vulnerability and highlighted Bitcoin’s potential as a hedge against inflation, a tool for macroeconomic resilience, and a source of long-term capital appreciation.
Meanwhile, several major corporate investors in Bitcoin, including MicroStrategy, have witnessed significant profit increases.
According to data compiled by Saylortracker, with current market prices hovering around $67,000, MicroStrategy’s Bitcoin holdings now boast a valuation exceeding $14.59 billion. This reflects nearly $6.5 billion in unrealized profits – an impressive gain of approximately 104% year-to-date since Saylor initiated the investment allocation in 2020.
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