With the increasing interest in digital assets, companies are adopting Bitcoin as a balance sheet item. This trend, initiated by MicroStrategy, is gradually encompassing more organizations.
First Step: MicroStrategy’s Leadership
MicroStrategy acknowledged Bitcoin as a treasury asset in 2020, leading to a remarkable 2500% increase in its stock value. The company expanded its reserves through cash, capital raises, convertible debt, and more recently, preferred stock offerings.
Other Companies Following Suit
In 2024, numerous public firms such as Metaplanet, Semler Scientific, and MARA Holdings adopted Bitcoin strategies. Additionally, several successful mining companies joined this trend.
Diverse Impact of Bitcoin on Financial Strategies
For example, KULR Technology Group acquired $21 million worth of Bitcoin, increasing its holdings to 430 BTC, financed via its ATM stock program and excess cash. Since November 2024, KULR's stock price surged by 847%. Other companies like Acurx Pharmaceuticals and LQR House announced their Bitcoin plans, increasing their stock by 56%.
The acceptance of Bitcoin by some companies has been associated with varied financial outcomes, illustrating the diverse impact of digital assets on strategies.
