Fidelity Executive: BTC Outperforms Traditional Assets in the Long Term, Holds Strategic Reserve Value
According to Bitcoinmagazine, Chris Kuiper, Vice President of Research at Fidelity Digital Assets, delivered a speech at the Strategy World 2025 conference, urging companies to reassess their considerations of risk, capital allocation, and long-term financial health. He pointed out that Bitcoin's compound annual growth rate over the past decade reached 79%, far surpassing the nominal return rate of 1.3% for investment-grade bonds, proving it to be not just a speculative asset but a strategic reserve. He emphasized that companies need to reevaluate risk and capital allocation as inflation and currency depreciation are threatening balance sheets, with traditional safe havens like U.S. Treasuries now yielding negative real returns.
Addressing the controversy over Bitcoin's volatility, Kuiper proposed position adjustments and long-term strategies, suggesting that companies allocate 1-5% of their assets to Bitcoin to enhance risk-adjusted returns and limit drawdowns. He also cited Microsoft as an example, noting that if excess cash is considered, its return on invested capital (ROIC) would drop from 49% to 29%, highlighting the inefficiency of cash. He concluded by stating that companies should focus more on the balance sheet rather than just the income statement, and that Bitcoin can transform idle cash into productive assets, posing the question to executives: "Can your opportunities outperform Bitcoin?"
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Forex Today: US flash Consumer Sentiment and Canadian jobs in the limelight
Malaysian Ringgit: Fiscal anchor case – MUFG
Nasdaq Drops Over 300 Points After OpenAI's Revenue Comes In $20 Billion Short
BUZZ-Revolution Medicines stock drops due to concerns over pancreatic cancer drug data
On October 8, Revolution Medicines (RVMD.O) shares fell 8.1% in afternoon trading to $185.91. RBC Capital Markets stated that the share price decline appeared to be driven by the latest U.S. Food and Drug Administration (FDA) review documents regarding the company's pancreatic cancer drug Rasonque, particularly the disclosure of objective response rate data for specific RAS mutation subgroups. RBC pointed out that overall survival, rather than objective response rate, is a more meaningful indicator of efficacy, and that the sell-off overlooked Rasonque's broad activity across a variety of RAS mutation subgroups. RBC stated: "While we acknowledge that today's share price decline takes place against the backdrop of overall weakness in the biotech sector, we still believe that the market's reaction to the FDA review documents is an overreaction, given that the drug was approved on the basis of highly clinically meaningful efficacy and has received positive feedback from physicians." Including intraday fluctuations, the stock has more than doubled year-to-date. (Note: For the convenience of non-English speakers, Reuters has automatically translated its reports into several other languages. Automated translations may be inaccurate or lack necessary context; Reuters does not guarantee the accuracy of these automated translations and provides them only for reader convenience. Reuters does not accept liability for any damage or loss arising from the use of automated translation features.)
Crypto prices
More
