BITCOIN for Corporates. Digital Renaissance & Balance Sheet Optimization.

EXECUTIVE SUMMARY

• Context: The Financial Accounting Standards Board (FASB) introduced ASU 2023-08, mandating fair value accounting for Bitcoin in corporate treasuries.
• Purpose: This document outlines key corporate participants adopting Bitcoin, capital-raising methods, and practical steps for integrating BTC into a treasury strategy.
• Audience: CFOs, CEOs, CIOs and investment professionals evaluating Bitcoin’s role in corporate balance sheets.

1. FASB’S FAIR VALUE ACCOUNTING (ASU 2023-08)

• Effective Date: Fiscal years beginning after December 15, 2024.
• Core Principle: Companies must mark Bitcoin to market, recognizing gains/losses in net income.
• Key Benefit: Eliminates cost-less-impairment, allowing for transparent reflection of BTC price changes.
• Regulatory Note: Multinationals may face dual compliance (FASB vs. IASB).

2. FUNDING APPROACHES for Corporate BITCOIN ACQUISITIONS

1. Equity Issuance: Firms raise capital by issuing shares; often used when share demand is high.
2. Convertible Notes: Borrow at low interest rates; convertible structure can minimize dilution if structured properly.
3. Cash Reserves: Allocate existing funds to BTC, an option for companies with sizable surplus.
4. Debt + Equity Hybrids: Combine bond offerings with warrant structures, balancing interest costs and equity dilution.

3. 1 Financing Methods for Corporate Bitcoin Acquisitions

Key Takeaways

• Equity Sales: Best for companies avoiding debt; optimal with high share demand
• Convertible Notes: Starts as debt, converts to equity; can minimize dilution if well-structured
• Tiered Equity: Structured raises with predetermined price points; balances fundraising with value protection
• Cash Reserves: Straightforward but limited by available surplus

3. 2 CORPORATE PROFILES: employing diverse treasury approaches to Bitcoin a - z

1. Banzai International (NASDAQ: BNZI)
2. Block (formerly Square)
3. Critical Metals Corp (NASDAQ: CRML)
4. Genius Group (NYSE American: GNS)
5. Hut 8 Mining Corp
6. KULR Technology Group (NYSE American: KULR)
7. Marathon Digital Holdings
8. Mercado Libre
9. ** Metaplanet Inc. (TSE: 3350; OTCQX: MTPLF)
10. *** MicroStrategy (NASDAQ: MSTR)
11. Nuvve Holding Corp (NASDAQ: NVVE)
12. * Powerstorm Holdings Inc. (OTC: PSTO) (Small-Cap Model)
13. SpaceX
14. Tesla
15. Thumzup Media (NASDAQ: TZUP)

4. Powerstorm Holdings $PSTO SPOTLIGHT: SMALL-CAP, DUAL STRATEGY

Business Model

Combines SME investments with Bitcoin holdings to create a balanced portfolio.

This dual approach seeks to harness steady cash flows from proven European businesses while capturing the upside of Bitcoin's growth.

European SMEs Strategic Investment Focus

• Capital Raise: Targeting $10M to deploy into high-growth EU SMEs (with revenues $5M+).
• Sector Emphasis: Renewable energy, telecom infrastructure, emerging tech
• Objective: Generate sustainable cash flows and build long-term enterprise value in alignment with EU market demandm enhance stock value.

Bitcoin Holdings

• Fundraise: Actively raising $2M to purchase ~17 BTC, aiming to position Powerstorm Holdings as a micro-cap Bitcoin proxy.
• Rationale: Enhance share value by offering investors exposure to digital asset growth alongside a traditional SME portfolio.

Risk Management

• Tiered Equity Pricing: Multiple financing tiers with set price points, limiting shareholder dilution and ensuring optimized capital inflows.
• Security Infrastructure: Plans to implement cold storage and robust internal controls to protect Bitcoin holdings.

Scalable Structure

• Financing Roadmap: Additional rounds anticipated as opportunities arise—expanding both Bitcoin reserves and SME investments.
• Portfolio Balance: Blends Bitcoin's appreciation potential with steady SME revenues, mitigating overdependence on market volatility.

Market Position

• OTC Trading: Seeks to enhance investor visibility and credibility, aiming for an OTCQB uplisting.
• Value Creation: Encourages a broader shareholder base through the appeal of tech-forward SME opportunities and Bitcoin exposure.

5. BENEFITS AND KEY RISKS

Benefits

• Inflation Hedge: Fixed BTC supply counters fiat currency expansion.
• 24/7 Liquidity: Immediate market access for treasury adjustments.
• Fair Value Transparency: FASB guidance clarifies unrealized BTC gains, attracting investor confidence.

Risks

• Price Volatility: Daily swings impact net income under fair value rules.
• Regulatory Differences: IASB vs. FASB for global firms; requires multinational compliance.
• Custody & Security: High stakes for internal controls and cold storage solutions.

6. To CFOs, CEOs, CIOs

• Assess Capital Structure, Decide between equity or convertible notes based on cost of capital and investor sentiment.
• Define BTC Targets, Clarify how many BTC or what percentage of treasury. Provide timelines to manage stakeholder expectations.
• Select Custody Solutions, Engage institutional-grade providers; evaluate multi-signature protocols for enhanced security.
• Plan for Volatility, Prepare investor relations strategies; disclose potential quarterly earnings swings due to fair value accounting.
• Stay Compliant, Monitor FASB updates, ensure PCAOB audits (for US public companies), and remain vigilant about global regulations.

CONCLUSION

In 2025, Bitcoin stands as a viable corporate treasury asset—backed by FASB’s fair value rules that increase transparency and facilitate investor confidence. Whether it’s MicroStrategy raising billions via convertible notes or Powerstorm Holdings (PSTO) aiming for a small-scale hybrid of Bitcoin and SME investments, organizations can tailor the approach to their risk profile, capital needs, and growth objectives.

When integrated with robust custody solutions, thoughtful capital structure, and clear disclosure, a Bitcoin treasury can provide both inflation protection and innovative market positioning for forward-looking companies.

#corporatetreasury #bitcoin #psto