Nasdaq-listed Hoth Therapeutics has announced plans to purchase Bitcoin as a treasury reserve asset.
On November 20, Hoth said that its board of directors authorized the purchase of $1 million worth of Bitcoin.
Using Bitcoin as a reserve asset will make the biopharmaceutical company the most recent organization to do so.
Despite being very minor compared to other recent acquisitions, Hoth’s Bitcoin acquisition represents another noteworthy advancement for the cryptocurrency.
The top cryptocurrency, which is valued as a hedge against inflation and a store of wealth, is still gaining traction on Wall Street and around the world.
Donald Trump’s victory in the 2024 US election on November 5th sent Bitcoin to new all-time highs of $94,000. Bitcoin’s market valuation has overtaken that of Saudi Aramco and silver in recent weeks.
Additionally, it now surpasses the combined market capitalization of Mastercard and Visa. Robb Knie, the CEO of Hoth, listed a number of justifications for the clinical-stage biopharmaceutical company’s choice to include Bitcoin on its balance sheet.
These include the asset’s potential as a “strong treasury reserve asset” and its increasing acceptance among institutional investors. The CEO of Hoth added:Â
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.”
Since Trump’s reelection, there has been a lot of interest in Bitcoin, and one of the developments supporting a favorable market position is the expected changes at the US Securities and Exchange Commission.
Meanwhile, US Senator Cynthia Lummis is leading the charge in creating a strategic Bitcoin reserve for the United States.
In order to purchase Bitcoin, the senator has suggested that the US government sell its gold. In other news, MicroStrategy is bolstering its Bitcoin strategy by adding $4.6 billion worth of the commodity to its funds.
