Hoth Therapeutics Allocates $1M to Bitcoin Amid Rising Institutional Adoption
- The move was accepted by the companys board of directors, reflecting a rising trend.
- Bitcoin was included in Hoths treasury strategy in part because of increased market activity.
In an effort to take advantage of Bitcoins potential as a store of wealth and protection against inflation, Hoth Therapeutics, a biopharmaceutical business in the trial stage, has allocated up to $1 million in the cryptocurrency.
In light of the increasing interest in Bitcoin after Donald Trumps reelection as president. The move was accepted by the companys board of directors, reflecting a rising trend among American firms.
This movement is in line with what US Senator Cynthia Lummis has said recently. She has asked the US Treasury to think about turning some of its gold holdings into Bitcoin. Adding Bitcoin to strategic reserves might solidify its position in contemporary finance as more institutions acknowledge its inflation-resistant properties.
Rising Institutional Demand
Hoth Therapeutics emphasized in a news release that the growing investor attention and acceptance is a critical factor in Bitcoins capacity to expand and function as a reserve asset. Bitcoin (BTC) was included in Hoths treasury strategy in part because of increased market activity. And the legalization of Bitcoin exchange-traded funds (ETFs), according to CEO Robb Knie.
According to an interview Lummis gave to Bloomberg on November 14th, she is in favor of the US Treasury Department creating a crypto strategic reserve by exchanging over 8,000 metric tons of gold for bitcoin.
The senator from Wyoming had already requested that the Treasury sell some of its holdings. And replace them with the flagship cryptocurrency, but had not specified which assets to sell. Instead of buying Bitcoin at market pricing, she said, the US governments balance sheet would remain neutral throughout the conversion.
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