How Can A Company Invest in Crypto?

Absolutely! If you've been wondering, "Can a company invest in crypto?" the answer is a loud yes. As of 8th April 2025, public companies collectively hold over 648,725 BTC, accounting for approximately 3.27% of the total Bitcoin supply. This trend underscores the growing corporate interest in digital assets. Companies like MicroStrategy and Tesla have made significant investments in Bitcoin, signaling a shift toward integrating cryptocurrencies into corporate strategies. Cryptocurrencies present fresh avenues for financial growth, whether spreading investment risk or exploring blockchain applications.

However, handling the world of crypto investments requires careful planning, compliance, and risk management. This blog will enable you to understand why businesses invest in crypto and guide you through actionable steps to set up a corporate crypto account, manage digital assets securely, and stay compliant with taxes and regulations.​

Understanding Cryptocurrency for Corporations

Cryptocurrencies have moved from niche investments to a regular part of the financial world. For companies, crypto isn't just for speculation; it can be used in many different ways. The global market for cryptocurrency trends was worth around $2.1 billion in 2024, and it's expected to hit $5 billion by 2030. This growth, happening at a compound annual growth rate (CAGR) of 15.4%, shows that businesses increasingly use digital assets in their operations.

Types of Entity Accounts for Corporate Crypto Investments

Companies can effectively manage their crypto investments by choosing the proper entity account while enjoying security, liquidity, and financial growth.

Why Are Corporations Investing in Crypto?

Companies are showing a growing interest in adding crypto investments to their portfolios. As of 2024, approximately 6.8% of the global population, i.e., over 560 million people, own cryptocurrency, prompting corporations to consider crypto a viable investment option. Notable examples include:

• MicroStrategy Inc.: The business intelligence firm holds nearly 506,137 BTC as per CoinGecko dated 8th April 2025 and acquired it at an average price of $66,000, positioning itself as a significant Bitcoin investment player.

• Tesla: As per CoinGecko, dated 8th April 2025, the electric vehicle manufacturer holds approximately 11,509 BTC, reflecting its strategic move into digital assets.

• Coinbase Global: Coinbase Global is one of the leading cryptocurrency exchange platforms that facilitates the buying, selling, and storing of digital currencies. They hold around 6,885 BTC as of 8th April 25, making them the eighth-largest BTC holders.

Picture Courtesy Coingecko dated 8th April 2025

Next Step: Research other companies in your field that have started using crypto-related strategies. See how they have fared and determine whether your company could benefit from their efforts.

Strategic Benefits of Crypto Investments For Corporations

Investing in cryptocurrencies can offer corporations several benefits:

• Portfolio Diversification: By incorporating digital assets into their portfolios, businesses can reduce dependence on traditional investments like stocks, bonds, and commodities. According to CoinGecko, as of 8th April 2025, the top five cryptocurrencies by market cap included Bitcoin ($1.57 trillion), Ethereum ($189 billion), Tether ($144 billion), XRP ($109 billion), and Binance Coin ($81 billion).

However, market cap values fluctuate frequently, so checking platforms like CoinGecko for the most up-to-date figures is advisable.

• Inflation Hedge: Bitcoin, commonly known as "digital gold," acts as a safeguard against inflation because of its limited supply (limited to 21 million). In 2024, Bitcoin experienced significant price growth (125%), with reports indicating substantial increases. While market trends suggested strong momentum into 2025, actual price movements remain subject to market volatility.

  
  

• New Revenue Streams: Earning passive income is becoming increasingly popular through blockchain innovations like staking, lending, and investing in DeFi projects. With a projected growth rate of 15.4% from 2024 to 2030, the cryptocurrency market is expected to expand significantly, reflecting increasing adoption and innovation.

  
  

• Enhanced Brand Image: Businesses embracing crypto tend to attract a younger, more tech-oriented crowd, which can boost their brand image. A recent poll indicated that 32% of investors expressed confidence in cryptocurrencies and blockchain technology for 2025, reflecting growing institutional and retail interest.

  
  

• Enhanced Treasury Management: Real-time, secure crypto transactions can optimize capital management. Programmable money, a digital currency designed to follow pre-set rules, makes it easy to automate revenue-sharing and keeps everything transparent, so back-office tasks like reconciliation become quicker and less complicated.

  
  

• Liability protection: One of the key advantages of structuring your crypto-related activities under a legal business entity, such as an LLC or corporation, is liability protection. This means your assets (such as your house, car, or savings) are generally protected from business-related obligations, debts, or legal issues. If your company faces a lawsuit, bankruptcy, or financial losses, creditors typically cannot seize your personal property to cover business debts.

However, this protection is not absolute, and specific legal exceptions, such as personal guarantees or fraudulent activities, could still put personal assets at risk.

Potential business deductions: If your crypto-related activities qualify as a "trade or business" under tax laws (rather than just personal investing), you may be entitled to tax deductions on expenses linked to your operations. This could include:

1. Software Costs: Trading platforms, blockchain analytics tools, or portfolio management software expenses may be deductible if directly related to your crypto business operations.

   
   

2. Hardware & Equipment: The costs of mining rigs, high-performance computers, and servers may be deductible if they are essential to your crypto operations, such as mining, running blockchain nodes, or executing complex trading algorithms.

   
   

3. Electricity and Internet: If you mine crypto or run blockchain nodes, some of your electricity and internet costs may be deductible.

   
   

4. Transaction Fees: Gas fees for executing transactions on blockchain networks can be deducted as business expenses if incurred as part of a qualifying crypto trade or business, such as trading, mining, or operating a blockchain-based service.

   
   

5. Professional Services: Legal, accounting, or advisory fees for your crypto business may be deductible. These can help you manage compliance, tax obligations, and regulatory requirements more efficiently.

Proper tax classification and record-keeping are essential to maximize these benefits while remaining compliant with regulations. Consulting a tax professional can make sure that you take full advantage of potential deductions while meeting all legal requirements.

Next Step: Develop a varied corporate approach to cryptocurrency. Start with a small allocation and gradually scale based on performance and market trends.

Also Read: Idea Paper: Yield Optimization on Stablecoins on Arbitrum Chain

Risks and Challenges of Cryptocurrency Investment

Crypto investments are not without challenges. Here are some of the key risks businesses should consider:

1. Market Volatility: Cryptocurrency prices are highly volatile. For instance, Bitcoin saw a remarkable 125% price surge in 2024, followed by expected market fluctuations in 2025, highlighting the cryptocurrency's inherent volatility.

   
   

2. Security Concerns: Cyberattacks and exchange hacks are still real dangers out there. If you don't have strong security, your digital assets could easily be stolen. The increasing value of cryptocurrencies has attracted significant attention, including from cybercriminals looking to exploit vulnerabilities.​

   
   

3. Regulatory Uncertainty: Crypto investment rules differ across regions, and a dearth of clear regulations can lead to legal and financial issues. Still, with governments taking a more supportive approach, the regulatory environment is gradually changing.

Next Step: Implement a comprehensive risk management plan that includes diversification, cybersecurity protocols, and legal compliance measures.

Also Read: Understanding Risks and Safety in Crypto Staking

Now that we comprehend the benefits and risks of crypto investments for corporations. Let's learn how to set up a cryptocurrency exchange account.

Setting Up a Cryptocurrency Exchange Account

To begin investing in crypto, your company will need a corporate exchange account. Unlike personal accounts, corporate accounts require additional verification and compliance processes.

Steps to Set Up a Corporate Account:

Ready to take your company's crypto investments to the next level? Setting up a corporate exchange account is your first step toward secure and efficient digital asset management.

1. Choose a Reliable Exchange: Select an exchange with strong security protocols and support for institutional investors. Consider platforms like Coinbase Prime, Kraken, or Binance Institutional, which are known for their strong security protocols and institutional support.

   
   

2. Submit Documentation: Provide business registration details, tax identification numbers, proof of ownership, and identity verification for authorized signatories. Make sure all documents are up-to-date and comply with the exchange's requirements.​

   
   

3. Implement Security Protocols: Enable multi-factor authentication (MFA), use cold wallets for long-term storage, and ensure internal access controls. Security measures should also be frequently updated to adapt to evolving threats.​

Next Step: Create a corporate crypto investment policy. Include guidelines on exchange selection, authorization processes, and risk management. Once those are done, you need to focus on where to store and manage your crypto.

Managing and Storing Cryptocurrency

Proper management and storage become essential once your business has acquired digital assets. It needs to be stored securely through the following ways:

1. Hot Wallets: Suitable for active trading and quick transactions. However, they are vulnerable to hacks and cyberattacks.

2. Cold Wallets: Offline storage devices like hardware wallets provide maximum security and are recommended for long-term holdings.

3. Multi-Signature Wallets: Require multiple transaction approvals, reducing the risk of unauthorized access.

4. Custodial Services: Some businesses prefer third-party custodians who specialize in institutional crypto management and provide security and insurance. Custodial services like Gemini Custody, BitGo, and selected financial institutions offer institutional-grade security and management for corporate crypto assets.

Next Step: Establish clear protocols for storing and accessing corporate crypto assets. Implement periodic security audits and look into tax considerations.

Tax and Accounting Considerations

Proper tax and accounting compliance is critical for corporate crypto investments.

1. Tax Implications: The IRS classifies cryptocurrency as property, making capital gains taxable upon selling or exchanging digital assets. It's advisable to consult a tax advisor for accurate reporting.

2. Accounting Standards: Follow the FASB guidelines for recognizing and measuring crypto holdings on financial statements.

3. Record Keeping: Maintain extensive records of all transactions, including purchase prices, dates, and wallet addresses, to streamline audits and tax filing.

Next Step: Partner with a tax professional experienced in cryptocurrency reporting. Make sure that alignment with the latest regulatory requirements.

Now that we have understood the tax implications of crypto for corporations. Let's look at a few crypto use cases in the business world.

Use Cases for Cryptocurrency in Business

Businesses are exploring various applications of cryptocurrency beyond investments:

1. Accepting Crypto Payments: Some companies, including Microsoft and AT&T, have adopted Bitcoin for payments, offering customers additional payment flexibility in certain regions.

2. Cross-Border Transactions: Using crypto for international payments reduces fees and accelerates transactions compared to traditional financial systems.

3. Investing in Blockchain Projects: Corporations can participate in blockchain innovation through strategic investments in startups or decentralized projects.

Accepting crypto payments or implementing blockchain technology could benefit your business mode. However, if you're interested in investing as an individual or even as a business, we have a fantastic option for you.

Introducing SperaxDAO

If you want to make an individual investment or are a business corporation, Sperax offers auto-yield on USDs without the need for staking or manual claims. With its decentralized and audited DeFi strategies, Sperax makes sure of secure, passive income generation with competitive APR ranging from 3% to 25%. Sperax offers innovative solutions for earning yield on stablecoins like USDC and USDT through its auto-yield mechanism. Unlike traditional staking or complex DeFi platforms, SperaxDAO provides a simplified approach to generating passive income on stable assets.

By integrating stablecoins into your corporate treasury, your business can benefit from predictable returns without navigating the volatility of other cryptocurrencies.

Learn how SperaxDAO can optimize your digital asset strategy by joining the X Community, where you will find the latest updates and industry insights.

Conclusion: The Future of Corporate Crypto Investment

To answer the question, "Can a company invest in crypto?" The clear answer is yes. The opportunities are vast, from portfolio diversification and treasury management to cross-border payments and blockchain innovation. Notable companies like Tesla and MicroStrategy have ventured into cryptocurrency investments, citing portfolio diversification and inflation hedging benefits.

However, navigating the space requires careful planning. Understanding the risks, selecting a reliable exchange, establishing secure storage methods, and making sure of tax compliance are all essential steps for corporate investment. By adopting a strategic approach, your company can unlock the potential of digital assets while mitigating challenges.

Take the first step toward integrating crypto into your corporate strategy. Visit SperaxDAO to explore secure and efficient ways to earn passive income on your digital assets.

Stay ahead in the evolving financial landscape and embrace the future with corporate crypto investments. Join the Sperax Family to stay updated.

Frequently Asked Questions (FAQs)

Q. Can a company legally invest in cryptocurrency?

Companies can legally invest in cryptocurrency, but regulations vary by country. Ensure compliance with local financial authorities and tax laws before proceeding.
The U.S. Securities and Exchange Commission (SEC​) oversees the regulation of digital assets, providing compliance guidelines for companies entering the crypto space.

Q. What are the key factors to consider when starting a crypto corporation?

Key factors include regulatory compliance, secure custody solutions, volatility management, tax planning, and establishing a clear investment strategy aligned with business goals. The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, offers detailed regulatory guidance for businesses handling virtual currencies to prevent financial crimes.

Q. How can businesses manage the risks associated with crypto investments?

Businesses can mitigate risks by diversifying investments, using secure wallets, implementing risk management strategies, and staying updated on regulatory changes. The Commodity Futures Trading Commission (CFTC) provides resources on virtual currencies, helping businesses understand the associated risks and regulatory landscape.

Q. What are the tax implications for companies investing in cryptocurrency?

Tax rules vary, but cryptocurrencies are often treated as taxable assets. Companies must report gains, losses, and transactions in compliance with local tax regulations; the Internal Revenue Service (IRS​) offers detailed tax guidance on cryptocurrency transactions, ensuring companies comply with applicable tax laws.

Q. Is it better to create a separate LLC for crypto investments?

Creating an LLC for crypto investments can limit liability, offer tax advantages, and separate business risks from personal assets, making better legal protection.
While there isn't a specific government guideline on structuring entities for crypto investments, the Small Business Administration (SBA) does not provide crypto-specific guidance; it offers resources for selecting suitable business structures. For the best outcome, consulting with a legal or tax professional who understands the evolving crypto landscape is advisable.

Q. How can a business ensure compliance with crypto regulations?

Engage legal advisors, monitor regulatory updates, maintain transparent records, and comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) guidelines.
FinCEN offers clear guidelines on Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, ensuring compliance for businesses handling virtual currencies.