Can nvidia add bitcoin to its balance sheet?

Speculation has recently emerged about Nvidia adding bitcoin to the Treasury reserves. These unconfirmed reports lead to questions about the possibility of an increase in institutional adoption of Bitcoin and the performance of such moves for Nvidia, which has seen stock prices drop significantly this year.

Beincrypto interviewed representatives from Banxe, Fineqia, Coinshares, Bitunix and Acre BTC to discuss Bitcoin’s potential benefits to Nvidia and investigated whether such investments would ultimately benefit the company in the long term.

Nvidia’s potential Bitcoin investment rumours

Over the past few weeks, several reports have emerged across social media, suggesting that Nvidia, a pioneer in GPU-accelerated computing, is considering adding Bitcoin to its balance sheet.

Given that Nvidia has not issued an official statement on the topic, these reports remain purely speculative at the time of reporting. When Beincrypto reached out to explain, an Nvidia spokesman declined to comment.

As a rumour, these reports highlight the significant impact of such decisions on the perception of Bitcoin by the public. Given Nvidia’s current economic situation marked by a massive decline in stock prices, the announcement of this nature is not entirely unexpected.

Recent economic challenges

For the past five months, Nvidia has navigated the economic and geopolitical obstacles that have had a major impact on the company’s operations and overall financial performance.

Between Biden-era export restrictions and Trump’s recent trade policy, Nvidia is facing problems in all respects due to global inflation risks, weakening of the US dollar and increasing competition with other GPU manufacturers.

“Despite the signs of a recent recovery, risk-on assets are generally insufficient in the early months of 2025. Furthermore, growing competition, especially in the GPU and AI sector, poses a threat to Nvidia’s market leadership, increasing the likelihood of a decline in market share. Matteo Greco, senior associate at FineQia, told Beincrypto, a surprising rally saw the stock price around x9 between the beginning of 2023 and the start of 2025.

As a result, Nvidia’s stock price was a hit. Recent reports show that Nvidia shares have fallen 35% since its latest price peak in January.

Nvidia’s shares were not particularly responsive to the news that China’s Huawei Technologies was testing a new AI chip that is potentially stronger than Nvidia’s H100.

Given these circumstances, Nvidia can mitigate current economic challenges by diversifying its financial assets.

Should Nvidia consider adding Bitcoin to its balance sheet?

With uncorrelated behaviours compared to traditional markets and their cap supply, Bitcoin presents businesses with strong inflation hedging opportunities.

If Nvidia considers this, it will follow trends established by other companies that have invested in this asset class for similar reasons over the past few years.

“We have already seen similar cases when MicroStrategy and Tesla made headlines by allocating a portion of the Treasury to Bitcoin. These cases demonstrated that bold crypto strategies can attract market attention, and explore this path,” said Banxe CEO Alex Guts.

Such a move could significantly change how other institutional investors view Bitcoin and encourage more companies to adopt similar strategies. The Crypto community may celebrate this news by believing that it solidifies the legitimacy of Bitcoin as an asset class.

“There are also benefits from stakeholders and market awareness. By retaining Bitcoin, we can broaden our appeal to NVIDIA’s new class of investors and partners, which could attract attention from young tech-savvy investors that the crypto community and the companies consider to fit their value.

This potential move by Nvidia is also consistent with existing ties to the cryptocurrency space given the key role of technology in bitcoin mining.

The role of Nvidia in the Bitcoin ecosystem

Bitcoin mining, in particular its demonstration consensus mechanism, is a natural application in Nvidia’s products.

“Nvidia is a company known for being at the forefront of technology (AI, graphics, etc.) and adding Bitcoin will reinforce the image of being foresighted. In fact, you’d say the move is leveraging Nvidia’s legacy in a cryptographic space.

At that point, Greco added:

“There is already a natural link between Nvidia and Bitcoin, so seeking direct exposure to assets seems logical. Bitcoin hashrate, an important metric that measures the computing power of a network, is steadily climbing, and in that context, nvidia’s backing Bitcoin can hold back nvidia to keep it down, as it can hold back the company’s income.”

However, the extent to which Nvidia requires Bitcoin for stability is debatable.

Risk of adding Bitcoin to Nvidia’s Ministry of Finance

As it stands, Nvidia already has other strategies to help companies hedge hedge against volatility and inflation. Adding Bitcoin to the mix can look excessive.

“Bitcoin offers the advantage of diversification as a potential hedge against uncorrelated assets and long-term dollar depreciation. However, in reality, Nvidia is already using a Forex hedging strategy to manage currency risk,” Satish Patel, senior investment analyst at Coinshares, told Beincrypto.

This is especially true when you consider how volatile Bitcoin itself is. While assets can generate significant profits during bullish times, the losses they can cause are equally serious.

“The first risk to be measured must be price volatility. A significant reduction can result in significant unrealized losses on the balance sheet in the short term. Under current accounting standards, Bitcoin is treated as an “intangible asset” and does not directly affect the income statement.

So, Bitcoin may not be a natural choice to protect Nvidia from current stock declines. This type of investment should reflect long-term strategies rather than impulsive decisions.

Will BTC make a difference in Nvidia’s stock price?

Bitcoin has demonstrated high long-term returns, despite considerable volatility. For businesses that can withstand the associated risks, including large price fluctuations, it offers significant future profit potential.

“Looking at its historic performance, Bitcoin has been the best performing asset in the last 15 years. This will be a strategic addition to strengthening the corporate treasury ministry, at least on paper,” Greco said.

With substantial financial resources, Nvidia was able to absorb Bitcoin volatility without having a significant impact on the balance sheet. In this sense, the company rarely loses, but it also rarely gains.

“Unless Bitcoin allocation is important, Nvidia’s long-term stock impact could be curtailed. Even Tesla, which exceeds 11,500 BTC, has not been widely reclassified by investors as a treasury of crypto. Added.

Ultimately, Nvidia’s decision to invest in Bitcoin on timing and urgency, especially given recent developments that eased some pressure on the company.

Relaxing export restrictions: Nvidia’s support

Last week, the Trump administration announced plans to roll back certain Biden-era export restrictions on advanced semiconductor chips.

Biden’s “AI Proliferation Rules” established these restrictions to strengthen US technical leadership by preventing sophisticated chips from being diverted to countries of concern, particularly China. Given that China is Nvidia’s leading buyer, the rule has significantly hindered sales.

“The US embargo on chip cargo to China has reduced NVIDIA’s expected revenues by about $5.5 billion per quarter since the first quarter of 2025. Furthermore, due to AI chip testing and breakthroughs by Huawei and others, NVIDIA has competed directly in the strategic market,” Chen said.

The rollback is a huge advantage for Nvidia sales, especially amid this new wave of ship manufacturers.

Similarly, the recent suspension of US-China tariffs has led to Nvidia’s share price rise. Despite its temporary nature, the news is a positive sign for the company, promising a reduction in uncertainty and potential benefits for sales and supply chain stability.

With these developments in mind, adding Bitcoin to Nvidia’s balance sheet may no longer be urgent. If Nvidia makes such a decision in a hurry, it may also drive away traditional investors and long-time buyers.

Many areas of traditional funding remain extremely skeptical of Bitcoin due to its short history and highly unstable nature. If Nvidia adds Bitcoin as a financial asset, traditional investors could view it as an inadequate decision and alienate long-standing clients.