Authors : Edmund Kofi Yeboah; Joseph Kobi; Daniel Duah; Benjamin Yaw Kokroko

Volume/Issue : Volume 11 - 2026, Issue 1 - January

Google Scholar : https://tinyurl.com/4jcsrwc6

Scribd : https://tinyurl.com/y4tuetcd

DOI : https://doi.org/10.38124/ijisrt/26jan590

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This paper examines how cryptocurrencies can be incorporated to the corporate investment portfolio and how the risk management strategies can be implemented to make the cryptocurrencies usage a success. The sheer volatility and uncertainty that have been seen in the cryptocurrency markets pose great threats to management of corporate treasury and institutional investment. By thoroughly examining the processes of portfolio construction, risk measurement models, and the protective resources, the research gives recommendations to corporations thinking about using cryptocurrencies. The study compares passive and active investment style whereby the performance benchmarking is considered in a variety of market regimes such as crash periods, flat markets, bullistic market and bearish market trends. The research has revealed that the traditional diversification gains are narrow in the cryptocurrency market, and altcoins do not offer significant risk mitigation as compared to Bitcoin. Nevertheless, predictability through momentum facilitates effective downside protection tactical allocation strategies which retain the upside participation strategies. The paper puts forward an Optimal NAV Protect strategy, which is a combination of minimum-variance allocation and momentum-driven tactical exposure, and has a better performance based on risk adjustment in different market environments. The practise provides corporations with a viable model of cryptocurrency integration that is compensatory in its return targets and institutional risk limitations. The analysis adds to the knowledge of the cryptocurrency portfolio dynamics, its risk management and consideration of implementation with corporate investors that operate within this new asset class.

Keywords : Cryptocurrency Integration, Corporate Portfolios, Risk Management, Portfolio Optimization, Bitcoin Allocation, Volatility Management, Institutional Investment, Tactical Asset Allocation, Corporate Treasury, Digital Assets.

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