Bitcoin Treasury Companies Should Lean Into the Lightning Network

Core Insights - A new paradigm is emerging where companies are using Bitcoin not just as a long-term asset but as a functional currency, enabled by the Lightning Network [1][3] - Companies can now earn yield by deploying idle Bitcoin into Lightning liquidity channels, transforming their Bitcoin from a passive reserve into productive digital capital [2][5] - The integration of Bitcoin payments for revenue growth aligns the interests of treasurers and payment companies, enhancing the overall Bitcoin ecosystem [3][4] Group 1 - Companies can earn routing fees and transaction volume rewards by deploying Bitcoin into Lightning liquidity channels, improving treasury efficiency [2][5] - The Lightning Network allows treasury companies to lend or deploy Bitcoin liquidity, selling it to market participants who need channel depth [5] - This shift from passive reserve to active utility represents a significant inflection point for the Bitcoin economy [4][6] Group 2 - The yield generated through the Lightning Network is native to the network, avoiding counterparty risk associated with custodial yield products [6] - The more companies engage in routing payments and providing liquidity, the more robust the Lightning Network becomes, driving adoption and value [3][4] - Square's announcement to enable Bitcoin payments for over four million small businesses marks a critical step in the practical application of Bitcoin as money [3]