Hoth Therapeutics Approves Purchase of $1M Bitcoin as Treasury Reserve Asset

Hoth Therapeutics, a Nasdaq-listed biopharmaceutical company, has announced plans to purchase $1 million worth of Bitcoin as part of its treasury reserve strategy. This move, approved by the company’s board of directors on November 20, marks the latest instance of an institution embracing Bitcoin as a reserve asset.

While Hoth’s Bitcoin purchase is relatively modest compared to other recent corporate acquisitions, it adds to the growing trend of institutional adoption of the cryptocurrency. Bitcoin continues to gain attention, particularly on Wall Street, where it is increasingly viewed as a store of wealth and a hedge against inflation.

Bitcoin recently reached new all-time highs, surpassing $94,000, propelled by the November 5 U.S. election victory of Donald Trump. It has since surpassed the market capitalization of silver and even Saudi Aramco, and is now worth more than the combined market cap of major financial giants Visa and Mastercard.

Robb Knie, CEO of Hoth Therapeutics, explained the reasoning behind the company’s decision to add Bitcoin to its balance sheet. Knie cited the growing acceptance of Bitcoin among institutional investors, along with its potential as a reliable “strong treasury reserve asset” due to its inflation-resistant qualities.

“With recent approval of Bitcoin ETFs and increasing institutional activity, it is a strong addition to our treasury strategy. We believe its inflation-resistant characteristics may make it a reliable asset as a functional store of value,” said Knie.

The purchase comes as Bitcoin has seen significant interest following Trump’s re-election and as potential regulatory changes, such as the anticipated leadership shifts at the U.S. Securities and Exchange Commission, continue to bolster market sentiment. Additionally, U.S. Senator Cynthia Lummis is advocating for a national strategy to build a Bitcoin reserve, even proposing that the U.S. government sell some of its gold holdings to purchase Bitcoin.

Meanwhile, other institutions, such as MicroStrategy, continue to strengthen their Bitcoin positions, with the business intelligence firm adding an additional $4.6 billion worth of Bitcoin to its balance sheet.

Hoth’s decision to integrate Bitcoin into its treasury strategy highlights the increasing confidence in the cryptocurrency’s role in the global financial ecosystem, signaling a broader shift in institutional attitudes toward digital assets.