Hoth Therapeutics allocates $1M to Bitcoin as treasury asset

Hoth Therapeutics, a clinical-stage biopharmaceutical company, has allocated up to $1 million to Bitcoin, aiming to leverage the cryptocurrency’s potential as a store of value and hedge against inflation.

The company’s board of directors approved the move, reflecting a growing trend among businesses in the United States amid renewed interest in Bitcoin (BTC) following Donald Trump’s reelection as president.

This trend aligns with recent comments from US Senator Cynthia Lummis, who has urged the US Treasury Department to consider converting some of its gold reserves into Bitcoin.

As more organizations recognize Bitcoin’s inflation-resistant qualities, including it in strategic reserves could further cement the cryptocurrency’s role in modern finance.

Related: Michael Saylor to pitch Microsoft board on Bitcoin buying strategy

Hoth BTC allocation

In a press release, Hoth Therapeutics highlighted that the increasing “investor attention and acceptance” plays a key role in BTC’s continued growth and its ability to serve as a reserve asset.

Hoth CEO Robb Knie said the approval of Bitcoin exchange-traded funds (ETFs) and heightened market activity played a role in adding BTC to the company’s treasury strategy.

“We believe its inflation-resistant characteristics may make it a reliable asset as a functional store of value,” he said. 

Related: MicroStrategy buys $4.6B of Bitcoin as price nears all-time high

Lummis pushes for BTC reserve 

On Nov. 14, Lummis told Bloomberg that she advocates for the US Treasury Department to convert more than 8,000 tonnes of gold holdings into BTC to establish a crypto strategic reserve.

The Wyoming senator had previously called for the Treasury to convert a portion of its assets to the flagship cryptocurrency but did not specify which holdings should be sold. 

She explained that the US government’s balance sheet would stay “neutral” through the conversion instead of purchasing the BTC at market prices.

Former presidential candidate Robert F. Kennedy Jr. also advocated for the asset, stating on Nov. 16 that he is “fully committed” to BTC after putting “most” of his wealth into the cryptocurrency.

Related: Senator Lummis says Treasury should convert gold for Bitcoin reserve

MicroStrategy pushes Microsoft to BTC

On Nov. 19, Michael Saylor, the Chairman of publicly traded firm MicroStrategy, said he had agreed to give a three-minute pitch to Microsoft’s board of directors on investing in BTC.

Saylor explained that an “activist” had put a proposal together for the CEO to present to Microsoft’s board, giving him just a three-minute window to present his speech.

The MicroStrategy CEO previously proposed to meet with Microsoft CEO Satya Nadella “in confidence” to discuss the topic, but the offer was declined.

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