Welcome to another edition of The Bitcoin Business Newsletter.

This week, we’re finally publicizing our proprietary benchmark named The Bitcoin Business Standard.

Although this has guided us internally and our clients may be familiar with it, this is the first time we’re publicly announcing it to the world.

Introduction

There’s an undeniable need for a trusted guide in the bitcoin business landscape. Most companies have no idea where to begin or even what success may look like. It’s new, opaque, and filled with conflicting information. It’s nobody’s fault; the space is moving so fast that an outsider can’t be expected to keep up with the rate of innovation.

That is why Sovreign has developed The Bitcoin Business Standard. This new framework can serve as a guidepost for firms that want to adopt bitcoin, giving them an idea of where they are at while also providing them something to aim for in a structured manner.

C represents the ultimate endpoint of bitcoin business adoption: a corporation that has exchanged 20th-century ideas with new ones powered by technology. It means the company is taking full advantage of bitcoins financial, operational, and cultural benefits.

The Bitcoin Business Standard doesn’t merely aim to add bitcoin as an asset on a company’s balance sheet—it’s a holistic approach that integrates bitcoin’s unique properties across all facets of business.

At its core, The Bitcoin Business Standard is built on three foundational pillars: Financial Sovereignty, Operational Efficiency, and Cultural Alignment. Together, these pillars redefine what success looks like in a bitcoin-integrated future.

Phase 1: Treasury Transformation (Sovreign’s Core Service)

Financial Sovereignty

Purpose: Establish a solid financial foundation through bitcoin as a reserve asset, paving the way for resilience and growth.

Financial Sovereignty encompasses the core principles of bitcoin as a hedge against inflation and an asset for long-term stability. This phase focuses on building and protecting financial reserves while enabling strategic growth.

• Key Services:

• Conversion to Bitcoin Reserves: Transition fiat reserves into bitcoin as a stable store of value.

• Strategic Leverage for Growth: Use bitcoin-backed loans to access capital without selling assets.

• Bitcoin-Backed Business Accounts: Establish yield-generating accounts with bitcoin, like those from River, that provide interest in BTC with FDIC insurance on fiat holdings.

• Responsible Leverage: Implement responsible bitcoin-backed leverage strategies for accumulation.

• Bitcoin-Backed Lending and Collateral: Access lending options that allow growth and expansion without liquidating bitcoin holdings.

Phase 2: Operational Expansion (Strategic Guidance & Referrals)

Operational Efficiency

Purpose: Enhance everyday business functions, streamline processes, and reduce costs through bitcoin, while integrating employee-focused benefits.

Operational Efficiency leverages bitcoin for improved cash flow, reduced fees, and streamlined payment processes. This phase includes adopting bitcoin across payments, payroll, and innovative employee engagement strategies.

• Key Services:

• Efficient B2B Payments via Lightning: Implement Lightning Network payments for fast, low-cost transactions, reducing dependency on traditional banking fees.

• Bitcoin Payroll and Incentives: Provide salary options and performance-based incentives in bitcoin to align employee goals with company principles.

• Global Remittances: Use bitcoin for seamless international payroll and contractor payments, bypassing currency exchange costs.

• Bitcoin Payment Acceptance: Attract new customer segments, particularly in the bitcoin community, and lower transaction costs by accepting bitcoin both on layer 1 and the Lightning Network

• Healthcare on the Bitcoin Standard: Partner with bitcoin-friendly healthcare providers like CrowdHealth and NiHowdy to offer decentralized healthcare options.

• Incentivized Training and Development: Foster a high-engagement culture by rewarding employees with satoshis for training and skill development.

• Verification with Bitcoin “Orange Checkmarks”: Utilize Orange Checkmarks developed by MicroStrategy for simple and cost-effective verification of employees and key stakeholders.

Phase 3: Cultural & Competitive Edge (Advanced Vision)

Cultural Alignment & Strategic Innovation

Purpose:Establish a competitive advantage through a bitcoin-centric culture, advocacy, and long-term growth strategies, including advanced initiatives like bitcoin mining and customer loyalty programs.This phase represents the full realization of the bitcoin Business Standard. It includes advanced integrations and initiatives that distinguish the business as an industry leader and an advocate for bitcoin.

• Key Services:

• Bitcoin-Based Retirement and Stock Options: Provide bitcoin 401(k) or IRA contributions and bitcoin-based options as an alternative to traditional stock options, giving employees a stake in bitcoin’s growth.

• Customer Loyalty through Bitcoin Rewards: Engage customers with loyalty programs in satoshis, building a connection with the bitcoin ecosystem.

• Corporate Bitcoin Advocacy & Education: Position the company as a thought leader in the bitcoin space through public advocacy and hosting educational events.

• Bitcoin Mining Integration: Partner with mining providers like Sazmining for outsourced bitcoin mining operations, creating an additional revenue stream and a new way to accumulate bitcoin.

• Sustainable, Carbon-Neutral Mining: Align with ESG goals by pursuing carbon-neutral bitcoin mining initiatives

We hope you found this overview as exciting as we did. Stay tuned for more whitepapers, ebooks, assessments and articles discussing this revolutionary concept.

Chart of the week.