Patrick Boyle On Finance Bitcoin on the Balance Sheet: Why Companies Are Turning to Crypto as a Treasury Strategy
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Jul 9, 2025 Companies are increasingly adopting Bitcoin as part of their treasury strategies, motivated by potential stock price enhancement and the influence of early adopters like MicroStrategy. This trend highlights a significant shift in business practices, as firms pivot from traditional models to embrace crypto investments. The conversation dives into the impacts of volatility on market perceptions and the evolving role of Bitcoin, now seen as a valuable asset rather than just a decentralized currency, posing both opportunities and risks for corporate finances.
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MicroStrategy's Bitcoin Pivot
- MicroStrategy's pivot to buying Bitcoin turned it from a loss-making software company into a $100 billion Bitcoin treasury company.
- It raised money by selling stock at a premium to Bitcoin's value, creating an 'infinite money glitch.'
Bitcoin Leverages Stock Prices
- Investors pay roughly $2 for a dollar's worth of Bitcoin owned by MicroStrategy, inflating its stock price.
- This creates a financial perpetual motion machine by leveraging Bitcoin's value to fund more Bitcoin purchases.
Rise of Corporate Bitcoin Holders
- Over 130 listed companies worldwide now collectively own more than 800,000 Bitcoins, about 3% of total supply.
- These firms span diverse industries and pursue Bitcoin to ignite investor enthusiasm and boost share prices.