Small companies can now hold Bitcoin with the same accounting clarity as large corporations. This guide covers why you might add Bitcoin to treasury, where to buy it as a business, and how the new FASB 2025 rules simplify accounting. No $100M required-companies are starting with as little as 1-5% of cash reserves.
Bitcoin isn’t just for MicroStrategy anymore.
While headlines focus on companies holding billions in Bitcoin, a quieter trend is emerging: small and mid-sized businesses adding Bitcoin to their treasury. Restaurant chains, software companies, professional services firms-businesses with $1M to $50M in revenue are allocating a portion of their cash reserves to Bitcoin.
The barriers that once made this impractical-complex accounting, limited custody options, unclear regulatory guidance-have largely fallen away. Here’s how small companies are approaching Bitcoin treasury in 2025.
Why Small Companies Are Adding Bitcoin to Treasury
The motivations vary, but three themes emerge consistently:
1. Inflation Protection for Operating Reserves
Small businesses often hold 3-12 months of operating expenses in cash. That cash loses purchasing power every year. Bitcoin offers an alternative store of value for reserves you don’t need immediately.
| Cash Reserve Strategy | 3-Year Inflation Impact | With 10% BTC Allocation |
|---|---|---|
| $500K all cash | -$75K purchasing power | Partial hedge against inflation |
| $1M all cash | -$150K purchasing power | Volatility trade-off for upside |
This isn’t about speculation. It’s about recognizing that holding 100% of reserves in dollars has its own risks.
2. Competitive Signaling
For tech companies, agencies, and forward-thinking service providers, holding Bitcoin signals innovation. Some companies report it helps with:
- Recruiting talent who value Bitcoin
- Attracting Bitcoin-native clients
- Differentiating from competitors
Companies like Tahini’s Restaurant Group have publicly discussed how their Bitcoin treasury generated media coverage and customer interest beyond any paid marketing.
3. Optionality and Upside
Unlike traditional treasury instruments (money markets, T-bills), Bitcoin has asymmetric upside. A 5% allocation that goes to zero barely impacts operations. A 5% allocation that 10x’s materially improves the balance sheet.
How Much Bitcoin Should a Small Company Hold?
There’s no universal answer, but here’s a framework based on what we’ve seen from companies on our leaderboard:
| Risk Tolerance | Allocation | Best For |
|---|---|---|
| Conservative | 1-5% of cash reserves | First-time allocators, tight margins |
| Moderate | 5-15% of cash reserves | Profitable companies with runway |
| Aggressive | 15-30% of cash reserves | High-conviction founders, low debt |
Factors to Consider
- Cash runway: Don’t allocate money you’ll need in 6 months
- Revenue stability: Recurring revenue = more room for volatility
- Debt obligations: High debt = lower Bitcoin allocation
- Founder conviction: If you’ll panic-sell at -30%, allocate less
The 1% Starting Point
Many small companies start with just 1% of cash reserves. This accomplishes several things:
- Forces you to set up proper custody and accounting
- Gets you comfortable with price volatility
- Creates a framework to scale if desired
- Low enough to not impact operations if it goes to zero
Where Small Companies Can Buy Bitcoin
Buying Bitcoin as a business is different from buying personally. You need:
- Business account verification (EIN, articles of incorporation)
- Proper custody (not your personal Coinbase)
- Transaction records for accounting
- Potentially, institutional-grade security
Platform Comparison for Small Business
| Platform | Minimum | Trading Fee | Custody | Best For |
|---|---|---|---|---|
| River | $100 | 1.0% | Included | Simplicity, auto-DCA |
| Swan | $10 | 0.99% | Partner (BitGo) | Dollar-cost averaging |
| Kraken | $10 | 0.26% | Optional | Lower fees |
| Coinbase Prime | $10K | 0.5% | Institutional | Larger purchases |
| Cash App (Business) | $100 | 1.5-2% | Limited | Very small amounts |
For Purchases Over $100K
Once you’re buying significant amounts, consider OTC (over-the-counter) desks:
- Better pricing (no slippage)
- Dedicated account manager
- Often better custody options
- Kraken OTC, Coinbase Institutional, River
What Documentation You’ll Need
- EIN / Tax ID
- Articles of Incorporation or LLC Operating Agreement
- Proof of business address
- Authorized signers and their ID
- Bank account for wire transfers
Wire transfers typically settle same-day; ACH takes 3-5 business days.
Custody Options for Small Companies
Where your Bitcoin lives matters. Options range from simple to sophisticated:
Option 1: Exchange Custody (Simplest)
Keep Bitcoin on the exchange where you bought it. Suitable for small allocations.
- Pros: Easy, no technical knowledge needed
- Cons: Counterparty risk, not your keys
- Best for: <$50K allocations, companies just starting
Option 2: Qualified Custodian
Use an institutional custodian like Coinbase Custody, BitGo, or Fidelity Digital Assets.
- Pros: Insurance, regulatory compliance, segregated accounts
- Cons: Fees (0.5-1% annually), minimums
- Best for: $100K+ allocations, companies needing audit trails
Option 3: Self-Custody (Most Control)
Hold keys yourself using hardware wallets, optionally with multisig.
- Pros: Full control, no counterparty risk
- Cons: Responsibility for security, key management
- Best for: Technical founders, Bitcoin-native companies
Option 4: Hybrid Approach
Split holdings: some with custodian for liquidity, some in self-custody for long-term.
For a detailed comparison, see our Corporate Bitcoin Custody Solutions Comparison.
Bitcoin Accounting for Small Businesses
Good news: the accounting complexity that plagued early corporate adopters is gone.
FASB 2025: Fair Value Accounting
Starting January 2025, FASB’s new rules require fair value accounting for Bitcoin. Michael Saylor called this change a major milestone for corporate adoption:
This means:
- Report Bitcoin at current market value each quarter
- Recognize both gains AND losses (old rules only recognized losses)
- Separate line item on balance sheet
Journal Entry Examples
When you buy:
DR Digital Assets (Bitcoin) $50,000
CR Cash $50,000
Quarter-end if price increased 20%:
DR Digital Assets (Bitcoin) $10,000
CR Unrealized Gain - Digital Assets $10,000
Quarter-end if price decreased 20%:
DR Unrealized Loss - Digital Assets $10,000
CR Digital Assets (Bitcoin) $10,000
Accounting Software Integration
| Software | Bitcoin Support | Notes |
|---|---|---|
| QuickBooks | Manual entries | Use sub-account under “Other Assets” |
| Xero | Manual entries | Similar approach |
| NetSuite | Better support | Can track fair value |
| Gilded | Native crypto | Built for crypto treasury |
When You Need a CPA
For most small companies, a competent bookkeeper can handle Bitcoin entries if:
- You provide quarterly fair value
- They understand the journal entries above
- You have clear documentation of purchases
For complex situations (multiple purchases, sales, tax optimization), work with a CPA familiar with crypto. Organizations like the Digital Asset Council maintain directories.
Implementation Checklist
Ready to add Bitcoin to your treasury? Here’s the step-by-step:
Week 1: Foundation
- [ ] Determine allocation (start with 1% if unsure)
- [ ] Get board/partner approval if required
- [ ] Choose a platform from the comparison above
- [ ] Gather documentation (EIN, articles, etc.)
Week 2: Setup
- [ ] Create business account on chosen platform
- [ ] Complete verification (usually 1-3 days)
- [ ] Link bank account for funding
- [ ] Test with small purchase ($100-500)
Week 3: Execution
- [ ] Make initial purchase
- [ ] Document transaction details
- [ ] Set up accounting entries
- [ ] Decide on custody approach
Ongoing
- [ ] Monthly: Review holdings vs. cash position
- [ ] Quarterly: Fair value adjustment for accounting
- [ ] Annually: Assess allocation strategy
Real Examples: Small Companies With Bitcoin
While we can’t share private company details, here are public examples of smaller Bitcoin adopters:
Tahini’s Restaurant Group
The Canadian restaurant chain allocated treasury to Bitcoin starting in 2020. They continue buying monthly regardless of price:
Professional Services Firms
Several law firms and accounting practices now hold Bitcoin, often at the 1-5% level. For some, it started with accepting Bitcoin as payment.
Tech Agencies and Consultancies
Software development firms, particularly those serving crypto clients, often hold Bitcoin. It aligns with their expertise and client base.
See more companies with verified Bitcoin holdings on our leaderboard.
Next Steps
- Assess your cash position: How much do you have in reserves? What’s your runway?
- Start small: 1% allocation to learn the process
- Set up properly: Business account, proper custody, accounting entries
- Track and verify: See how companies verify holdings on our proof of reserves guide
Track which companies hold Bitcoin and verify their holdings at BitcoinCompanies.co.