Corporations are starting to hold Silver & Bitcoin as Reserve Assets instead of Cash. We are hearing this more and more often: Fiat cash is for transactions, Gold, Silver and Bitcoin are for stores of value. If corporations and governments are doing this, should we?
Four corporations holding Silver or Bitcoin as corporate reserve asset:
- SilverCrest (SILV) $9.20 is Holding physical silver as a treasury asset. SILV has $91 million in US$ cash. An additional $30 million is held in Physical silver. The company trades at a 12 times trailing earnings and is debt free. SilverCrest plans to increase its silver position. In the video below Ritchie explains the math behind the Corporate decision to hold physical silver instead of US Dollars. They determined that holding reserves in US Dollar cash or any Fiat currency was losing them 8% annually in purchasing power.
Chris Ritchie talks about SILV holding physical Silver as treasury asset.
- First Majestic (AG) $6.20 founder Keith Neumeyer has talked about holding back produced silver for years. Keith has taken this one step further than holding physical silver as a treasury Asset. First majestic has started a Mint to create product to sell directly to the retail market to capture the entire vertical margin from mining to retail sales with at least part of AG’s production.
Keith Neumeyer Of First Majestic Talks About Gatos Silver Deal
First Majestic is the first and only precious metal miner to own their own Mint: website linked here.
- MARA Holdings (MARA) $15.4 founder Fred Thiel is doing the same with their mining of crypto business. What bitcoin they do not need to sell for operating expenses is held as a Treasury asset instead of US $ cash.
Trump Wants Bitcoin Strategic Reserve: Why MARA Just Bought $100 Million BTC
a talk with MARA founder, Fred Thiel
In the three corporate and MSTR below, example above, holding gold, silver or bitcoin, the leaders concluded that even with the volatility of Bitcoin, gold or silver, these assets were a better hold than the US Dollar or any other fiat currency.
Fiat currencies are best used for transactions and hard assets (gold, silver, bitcoin) are best for preserving and growing purchasing power.
This trend of a corporate asset other than fiat currency, as a reserve currency, started with Microstrategy (MSTR) $162.69 founder Michael Saylor. Saylor began holding Bitcoin as a treasury asset in August of 2020.
Central Banks began holding gold as a treasury reserve asset around 2010. Central Banks accelerated this trend when the USA weaponized the USD by placing sanctions on Russan in 2022 Ukraine / Russian war. In addition, the US confiscated Russian assets held abroad at the same time. This was a bad faith signal from the USA to countries who were both partners and enemies.
It is our thought at this time, that with all things equal, we’d like to be invested with corporations who hold gold silver or bitcoin as reserves assets. There are not many corporations doing this, but the list is growing.
Food for thought. Tom
