A neutral comparison, checked 9 November 2026. It names no products or providers and makes no forecasts. Neither option is right for every company; the board decides, with its own advisers.
What the operating reserve is for
An operating reserve is the money a company keeps to cover payroll, rent, suppliers and tax for a set number of months if income stops or arrives late. Its job is to be there, at a known value in pounds or dollars, when it is needed. The site's sizing guide starts from that: protect the operating reserve first, then decide whether any surplus above it should hold bitcoin, and cap that amount.
Side by side
| Question | Bank deposits | Money market fund | Bitcoin |
|---|---|---|---|
| Value in pounds or dollars | Stable, apart from inflation | Designed to be stable, but it is an investment and can fall | Volatile; can fall sharply over short periods |
| Access | Usually immediate | Usually same or next business day, depending on the fund | Trades all the time, but turning it into cash needs a sale and a bank transfer |
| Protection if a firm fails | UK: FSCS up to £120,000 per eligible depositor per bank. US: FDIC at least $250,000 per depositor, per ownership category, per bank | Not a deposit; not FDIC insured (SEC). Different protections may apply to the fund's structure | None from deposit insurance for crypto assets (FSCS and FDIC) |
| Income | Interest, at variable rates | Variable yield, less fees | None from holding |
| Accounting | Cash at face value | An investment, usually at fair value | UK: cost or revaluation; US: fair value under ASU 2023-08 |
| Tax when used to pay bills | None | Disposal of fund units may give a gain or loss | Each disposal can give a gain or loss |
Protection rules by country
The FSCS says it protects deposits with UK authorised banks, building societies and credit unions up to £120,000 per eligible person, per institution, for failures after 30 November 2025, and that small businesses and limited companies are also covered, with limits. Banks that share a licence share one limit. The FSCS says cryptoassets are not generally protected. A money market fund is an investment fund, not a deposit.
The FDIC insures deposits to at least $250,000 per depositor, per ownership category, at each insured bank. The SEC says mutual funds, including money market funds, are not guaranteed or insured by the FDIC or any other government agency. The FDIC says its insurance does not cover crypto assets.
Questions that decide it
- How many months of costs does the reserve need to cover, in the company's own currency?
- Could the company meet payroll if the bitcoin price fell sharply in the week it needed to sell?
- Are deposits spread across institutions so protection limits are not exceeded?
- Does the board want any bitcoin only in a surplus above the reserve, with a cap in the policy?
This page makes no forecast about prices or interest rates. See sizing an allocation and treasury policy.
Common questions
Can the operating reserve be held in bitcoin?
A company can choose to, but the reserve's job is a known value when bills are due. The site's sizing approach protects the reserve in cash first and considers bitcoin only for a capped surplus.
Is a money market fund the same as a deposit?
No. It is an investment fund. In the US the SEC says funds are not FDIC insured; in the UK it is not a bank deposit for FSCS deposit protection.
Is bitcoin at an exchange covered by the FSCS or FDIC?
No. Both say deposit protection does not cover crypto assets.
Sources
Primary sources only. Each link was checked on 9 November 2026. Rules change, so confirm the current version with your adviser.
- FSCSBanks, building societies and credit unions: protection up to £120,000 per eligible person from 1 December 2025
- FSCSSmall businesses and charities: cover for small businesses and limited companies
- FSCSCryptoassets: are they covered, and what is the risk?
- FDICUnderstanding deposit insurance: at least $250,000 per depositor, per ownership category, per insured bank
- FDICFact sheet: what the public needs to know about FDIC deposit insurance and crypto companies
- SEC (Investor.gov)Mutual funds and ETFs: money market funds, and funds are not insured by the FDIC
- FASBASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60)
- FRCFRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland
- HMRCCRYPTO41250: Corporation Tax on chargeable gains, what counts as a disposal
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This is general information and education only. It is not financial, investment, tax, accounting, legal or regulatory advice, and it is not a recommendation to buy, sell or hold bitcoin or any other asset. It does not take account of your circumstances or those of your company. You must obtain your own official professional advice to confirm this information is correct before acting on it.
Rules change. This information is correct to our understanding at the last-reviewed date, but it may be incomplete or out of date, and official sources take precedence. Bitcoin is volatile. A company that buys it could lose some or all of the money it puts in.
Using this site does not create an adviser or client relationship. IoT Financial is not authorised or regulated by the Financial Conduct Authority (FCA) and is not registered with the US Securities and Exchange Commission (SEC) as an investment adviser. Read the full disclaimer.