Mark Cuban Backs This Surprising Investment Amid High Inflation — Should You Invest?

October 19, 2024, Phoenix, Arizona, USA: Businessman MARK CUBAN speaks at a small business roundtable for the Kamala Harris for President campaign in Phoenix, Arizona.
Gage Skidmore/ZUMA Press Wire / SplashNews.com / Gage Skidmore/ZUMA Press Wire / SplashNews.com

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With high inflation and economic uncertainty all around, you may be wondering where to invest your money. The annual inflation rate for the 12 months ending in August 2025 was 2.9%, as per the U.S. Inflation Calculator. But the dollar’s purchasing power has fallen significantly over time. From 2020 to 2025 alone, the cumulative inflation rate was 25.2%. That means something that cost $100 five years ago would now cost $125.20.

For billionaire Mark Cuban, one such hedge against rising prices is crypto treasuries. Here’s why, and whether you might want to consider buying into crypto yourself.

Mark Cuban’s Stance on Crypto Treasuries

In an interview with TheStreet Roundtable, Cuban shared his views on crypto treasuries like Ethereum, Solana and Bitcoin. To note, he said he was “fine with it” as “alternative assets that can be a hedge” against inflation.

Cuban himself owns Bitcoin. He has also invested in nearly two dozen blockchain companies, under the Mark Cuban Companies umbrella. His stance on Decentralized Finance (DeFi) is that it offers a way for individual consumers to manage their finances independently of financial institutions: namely, banks.

As for why he views crypto treasuries as a hedge against inflation, the reason is simple. Options like Bitcoin can protect one’s purchasing power against erosion caused by inflation. As a newer, alternative investment, crypto may be more volatile than gold. But it’s got long-term potential as a way to help balance investors’ portfolios and mitigate risk.

To illustrate this further, Bitcoin was up 1,041.17% on Oct. 1, 2025. In comparison, gold was up 170.73%, while the S&P 500 was up 125.60%. Updated data is available on Bitcoin Counter Flow.

Should Everyday Americans Invest as Well?

The answer to this isn’t quite as straightforward as you might hope.

“There is merit in using Bitcoin treasuries as a hedge against inflation. With its fixed supply and growing institutional adoption, Bitcoin increasingly carries ‘digital gold’ characteristics,” said Charley Brady, vice president of investor relations at BitFuFu.

Brady went on to say that a rising number of companies have “adopted treasury strategies that include holding Bitcoin, underscoring its role as a scarce digital asset with long-term store-of-value potential. That said, companies and individuals must recognize the risks as Bitcoin remains volatile.”

Many cryptocurrencies are still highly speculative. According to Brady, Bitcoin could be a useful addition to a diversified portfolio. This doesn’t necessarily apply to other crypto.

“For everyday American investors, Bitcoin stands out as the only crypto asset with the scale and fundamentals to act as an alternative store of value — so long as allocations are disciplined and platforms are transparent and compliant,” he said.

Education Is Essential to Crypto Investment

It’s also worth noting that there are two main types of crypto treasuries.

According to Charles Urquhart, CFA and founder at Fixed Income Resources, these are “companies that hold bitcoin in their treasuries as a hedge against fiat money devaluation, and tokenized Treasuries, which are basically U.S. Treasury bills or ETFs represented on a blockchain for quicker settlement and wider accessibility.”

The first type — well-known companies that hold Bitcoin as a hedge against inflation — do so with the expectation that the dollar will decline. However, Urquhart doesn’t view this as a “reliable inflation hedge for regular investors” due to the cryptocurrency’s volatility and downturns.

There’s Also an Option for the Cautious Investor

Tokenized Treasuries may be worth considering, however.

“They essentially repackage regular U.S. Treasuries and come with a different wrapper. For most households, a combination of I-Bonds, TIPS [Treasury Inflation-Protected Securities], short-term high-grade bonds and fairly sized equity investments is more practical and less volatile,” Urquhart said. “Crypto treasuries may play a tiny supporting role but shouldn’t replace the main way of fighting inflation.”

Ultimately, investors should weigh their options carefully when deciding what to invest in. Risk, returns and time horizons all play a major role in what should — and shouldn’t — be added to one’s investment portfolio. When dealing with alternative investments, it may be worth consulting a certified financial professional about your options.

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