Bitcoin Will Revolutionize How Small Businesses Think About Financing

Small businesses are the backbone of the global economy. Yet, financing their growth remains one of their biggest challenges. Traditional financing options for small businesses are limited, with high-interest rates, lower loan amounts, and personal guarantees as the norm. Banks demand collateral or years of financial history, often sidelining startups and smaller firms.

This dynamic is set to change for businesses that adopt a Bitcoin treasury strategy. Bitcoin offers small and medium-sized businesses (SMBs) an alternative path to self-financing through saving, mining, and leveraging Bitcoin for liquidity via Web3 technologies or soon-to-come asset-backed loans from traditional banks.

With Bitcoin’s unparalleled long-term growth—averaging 60% annual appreciation since 2009—it serves as both a wealth-building asset and a powerful financial tool for businesses.

Defining a Business Bitcoin Treasury Strategy

A Bitcoin treasury strategy involves intentionally accumulating and holding Bitcoin as a core component of a company’s financial reserves alongside cash, treasuries, and securities, by diversifying its asset base with Bitcoin, a business positions itself for significant long-term appreciation.

This strategy can take two primary forms:

• Stacking – Regularly purchasing Bitcoin with surplus cash.

• Mining – Using hardware to earn Bitcoin through transaction validation.

This is a long-term approach. Over time, the business builds a Bitcoin reserve that serves multiple purposes:

• Hedge against inflation

• Generate appreciation on idle cash

• Create a valuable asset to leverage for liquidity

For example, if an SMB invested $1,000 per month into Bitcoin for five years and Bitcoin appreciated at half of its historical rate (30% annually), the company would have $125,000 in Bitcoin reserves, compared to just $60,000 in cash.

This doesn’t even account for inflation’s impact on the purchasing power of that $60,000 in cash.

Building a Bitcoin Reserve: Stacking and Mining

There are two primary strategies for accumulating Bitcoin reserves:

1. Stacking: Consistent Accumulation Means regularly buying Bitcoin, much like a disciplined savings plan. Given Bitcoin’s historical growth, this approach builds substantial value over time.

2. Mining: Earning Through Computation allows businesses to earn Bitcoin by validating transactions. This method provides tax advantages, such as:

• Depreciation of mining equipment

• Deductions for electricity and operational costs

• A structured way to accumulate Bitcoin while lowering taxable income

Third-party hosting providers can manage mining operations, making it feel more like a passive investment.

Both strategies outpace inflation and outperform traditional investments, strengthening a company’s financial position.

Turning Bitcoin into Liquidity

Once a business accumulates Bitcoin, it can unlock liquidity in innovative ways.

1. Web3 and Decentralized Finance (DeFi) - Web3 DeFi platforms—such as Aave and MakerDAO—allow businesses to use Bitcoin as collateral to borrow stablecoins or cash.

Example: A boutique that holds 1 BTC ($85,000) could borrow $42,500 in USDC for inventory at a 5-10% interest rate—comparable to bank rates but with:

•  No credit checks

•  No personal guarantees

•  24-hour funding

2. Traditional Banking is Adapting - Banks are evolving to accommodate Bitcoin-based loans. Firms like Fidelity will offer Bitcoin custody by March 2025.

Example: A hardware store holding 2 BTC could borrow $80,000 at a 4% interest rate, pending regulatory approvals from the SEC or OCC.

This model mirrors stock-backed loans but with Bitcoin’s superior appreciation potential.

Bitcoin vs. Stock Loans: The Appreciation Edge

Stock-backed loans are common: a business owner with $100,000 in Apple stock might borrow $50,000 against it. However, traditional stocks return just 7-10% annually, whereas Bitcoin has averaged 60% growth per year since 2009.

Example: A $100,000 Bitcoin investment in 2020 could be worth $620,000 by 2025, far outpacing stock market returns. This rapid appreciation allows businesses to secure larger, lower-cost loans over time, creating a compounding wealth effect that stocks can’t match.

Conclusion: Seize the Opportunity

Bitcoin is a paradigm shift in business finance. By stacking or mining Bitcoin and leveraging it through Web3 or future banking services, SMBs can escape the limitations of traditional financing.

With 60% annual appreciation since 2009, Bitcoin is the ultimate treasury asset—a rapidly growing store of value that can be borrowed against cheaply and quickly.

The financial landscape is changing. Regulations are evolving, and the rewards of early adoption are significant. By March 2025, forward-thinking SMBs that embrace Bitcoin financing will redefine their financial future—before the mainstream catches on.