Corporations Are BUYING UP Bitcoin At Record Speed

0:00Hello, everyone. We've got a lot to discuss today. Bitcoin adoption is being driven by corporations. Inflation has destroyed people holding cash, and Darius Dale explains why the Fed's inflation target should be 3 % instead of 2%. We're live today from the desk of Anthony Pompliano.

0:25Before we get into today's episode, I need your help. My goal is to get to 1 million subscribers, But right now, we're only at 20 ,559. It's a far way away, but with your help, we're going to get there. Please make sure you subscribe, and let's get into today's show. You know, one of the interesting things is that Bitcoin adoption happened in a very, very special way. Most technology is first used by militaries and nation states, then the corporations adopted, and finally, the average person is given access to the technology. This has happened with the internet, with phones, computers, and many other innovations over the last century.

0:59But Bitcoin? Bitcoin's been different. The people adopted Bitcoin first. Nation states? They thought about banning it. They fought it. Corporations? They thought it was too risky. They avoided it. It was the average person who did the work to understand the asset. They realized the market opportunity, and they took the leap of faith to buy and hold the world's first decentralized digital currency. And those people? They've been rewarded well for taking that risk. But now corporations are working hard to catch up. Bitcoin platform River just put out a great report showing how large a percentage of Bitcoin purchases are now coming from companies rather than from individuals.

1:34Sam Baker and Vincent Lee write that businesses have emerged as the primary force behind Bitcoin's ongoing bull market. In the first eight months of 2025, Bitcoin inflows onto business balance sheets have already exceeded the total for all of 2024 by$12.5 billion. Now, a big reason for this significant increase in accumulation from businesses has been the recent rise of publicly traded Bitcoin treasury companies. Everyone's talking about them. The report says that these treasury companies account for 76 % of all Bitcoin purchases since January 2024 and 60 % of publicly reported business holdings.

2:09Now, ever since MicroStrategy became the first public company to hold Bitcoin on its balance sheet, we have seen an explosion of other companies follow. It's estimated that there are now more than 50 other public companies who hold at least 10 Bitcoin each. And these companies are not just in the United States. In fact, the Bitcoin treasury phenomenon has become a global game almost overnight. There are public companies in nearly every market who continue to convert their local currency into digital sound money. And I don't think that's going to stop anytime soon. So it's obvious these treasury companies are a big reason for the continued Bitcoin bull market.

2:43But it's important to remember that although these companies are buying a lot of Bitcoin, they are still slightly behind funds and ETFs, which are the largest category buyer of Bitcoin so far this year. Now, it's healthy to have various types of buyers in a bull market, so it's good to see the demand coming from funds, ETFs, treasury companies, private businesses, and individuals alike. But let's go back to the idea for a second of companies holding Bitcoin. Most companies are never, ever, ever going to put majority of their balance sheet into Bitcoin. They just think it's too risky or it's too new for them.

3:14At least they're not going to do it in the short term. So much more realistic scenarios for companies to put 1 % of their balance sheet into the digital asset. 1 % may not sound like a lot, but look at the difference a 1 % allocation would have made for Microsoft, Google, and Apple since 2020. Each of these companies has seen their balance sheet's purchasing power erode from$14 billion to$21 billion since 2020. Just think how crazy that is for a second. The silent tax of inflation has stolen$14 billion of shareholder value in half a decade. It's crazy. It's insane. If these same companies had allocated only 1 % of their treasury to Bitcoin in 2020, they each would have seen a treasury gain of 14 billion to 29 billion in that same half decade.

3:56We're talking about a$25 billion swing or more in each one of these companies. And the risk that they would have had to take was only a 1 % allocation. It seems like such a no-brainer in hindsight. So this brings me to my last point, which is what companies are actually doing in terms of their allocation percentage. Rivers' data shows that many businesses are actually allocating far more than the hypothetical 1 % of Bitcoin. Businesses using River allocated an average of 22 % of their net income, according to a July 2025 survey. The median allocation is 10%. So there you have it. An allocation as little as 1 % would have had a profound impact on most companies' balance sheets since 2020.

4:35But the average allocation has been 22 % of net income and the median allocation has been 10%. Something tells me that those percentages, they're only gonna increase over time. Inflation is the silent thief. That's the message from Creative Planning's Peter Maluk. After the last 30 years, he says, it cut the value of$1.50 to$0.50. But$1 invested in the S &P 500 became$19 after adjusting for higher prices. He says that is the power of ownership. And I agree with Peter. Anybody who is holding dollars, just simply saving in cash, they're going to be losers in this economy because the dollar is going to be debased.

5:13But the people who are holding assets, whether it's stocks, gold, Bitcoin, real estate, or anything else. They're going to be winners because as that dollar is debased, those asset prices are going to go up. And that is ultimately the intelligence test of our generation. Are you holding cash or are you an investor? Winners and losers. That's the bifurcation. And so if you understand this, then the thing you need to do is spread the word. Over the last 30 years,$1 of purchasing power became 50 cents. Just since 2020, we have seen the dollar lose 30 % of its purchasing power. That is why we have wealth inequality in this country.

5:51And ultimately, that is why such a large percentage of people feel like they continue to fall behind. They're holding cash. That cash is melting away like an ice cube. And they need to learn to convert it into assets because asset owners are winners. And so ultimately, the wealth inequality gap in our country is really driven by a financial literacy problem. It's a national emergency in our schools. We should spend enormous amount of resources helping people better understand financial literacy, understand how to invest, and learn that saving is a losing strategy when they're debasing the dollar at an accelerated rate.

6:27I sat down with my friend Darius Dale yesterday, and he explained to me why he thinks that the Federal Reserve is wrong. He says that their inflation target at 2 % should actually be 3%. And regardless of that target, actually 3 % inflation is really what's going on in the economy. Take a listen to how Darius explained it to me. We have now an economy that is throwing off as a function of a variety of different changes in the economy, whether it be deglobalization, whether it be changing demographics, whether it be the advent of the AI, monocity power, or the amount of cash that's floating in the household sector balance sheets.

7:01There's all these different things that are changing in the economy that have essentially pushed up the equilibrium level of core PC inflation. And so the Fed, I don't know what the 400 PhD economists are doing over there, but in our opinion, it's been pretty clear for us to observe that in our data here at 42 Macro. We used to consult the Fed on a regular basis, but I guess they don't like when I tweet positive things about the administration, so they don't call me anymore. But that's either here nor there. That's either here nor there. But the key takeaway is that if our model is correct, I'm not even saying our model is correct or not.

7:32You don't have to take our model at face value. But what I'm saying is if our model is correct, then the Fed's arbitrary 2 percent inflation target is wrong because it ultimately means they're going to have to just constantly leaning against the economy, trying to create an inflation outcome that is mythical. It's like, yeah, sure, you can have 2 % inflation, but think about all the damage you have to do to the consumers and businesses that are gasping for economic oxygen at the bottom of the case-shaped economy in order to create 2 % inflation on a sustained, durable basis. And so in our view, this is why we've been pounding the table.

8:05I've been pounding the table for years. The Fed needs to revise this inflation target higher. Not because we're just two people who want more inflation. I grew up at the bottom of that case-shaped economy. I believe you were certainly on the bottom as well growing up. It's not like we grew up wanting inflation, but we understand that, hey, you might have to have a little bit more inflation to have a lot more real economic growth in terms of allowing for the fiscal dominance regime to proceed without causing minimal disruption in the economy. Right now, it is causing a lot of disruption in the economy because there's not enough money left to go around.

8:34Oh, stimulation may stimulate. Shocking how that works. You've got some data here that shows that actually, regardless of what the Fed's target is, 3 % may be closer to reality. consumer finances says 3 % is the new 2 % too? Yeah. So the Fed does this monthly survey of consumer finances, a lot of good data in there. Some of it very accurate, some of it not so much, but one of the things that has been pretty accurate is their inflation expectations. And if you look at the Fed's three-year, the Fed's one-year, so the respondents in the most recent survey of consumer finances said on a one-year basis, inflation is likely to be 3.1%.

9:12On a three-year basis, inflation is likely to be 3%. And on a five-year-four basis, inflation is likely to be 2.9%. So essentially, the Fed's own survey of consumer finance, from consumers, consumers are telling the Fed, we think inflation is 3%. So our model is saying inflation is 3%. The Fed's own survey is saying inflation is 3%. Yet the Fed wants 2 % inflation. And in our opinion, that's creating a lot of K-shaped outcomes in the economy. And so it's our belief, going back to where we started this conversation, that, hey, hey, the administration is going to continue to pull the levers that they can pull in the context of what their authorities are.

9:49And obviously, this administration has no problem extending the boundaries of those authorities in certain respects. And you can argue it or not argue it. But the reality is they're going to continue to do it, in our opinion, because ultimately, I think they understand everything that you and I have been talking about for years, which is, hey, this is not an economy that needs an arbitrary 2 % inflation target. This is an economy that needs a lot more real economic. growth. And ultimately, the Fed acknowledging that 3 % inflation should be the new bogey and running monetary policy credibly from there, in our opinion, would create better economic outcomes.

10:21That's just the hunch. Now, I think most people know I'm not really the biggest fan of the Federal Reserve and how they've been operating. They're constantly behind the curve. But hearing Darius explain this, using their own data to explain that inflation target of 3 % seems to make a lot of sense to me. I don't think that they're going to actually end up changing this thing. If anything, they'll just remove the inflation target. But that argument from Darius Dale is pretty compelling. And I think that the Fed, Fed's behind the curve. It'll continue to be behind the curve because they keep using bad data to make decisions.

10:51And until they fix that problem, you just can't get ahead. That's it for today. Please make sure that you subscribe on YouTube. 20 ,559 of you are already here, but we need 1 million. That's my goal. I'm dead serious about it. 1 million subs. Please make sure you hit that subscribe button and I'll see you guys live tomorrow from the desk of Anthony Pompliano.