In one month, several publicly-traded companies, such as South Korea’s K Wave Media, Hong Kong’s Reitar Holdings, and even Trump Media, have unveiled plans to establish a Bitcoin Treasury. Mercurity Fintech Holding has also joined the longlist of companies aiming to establish a Bitcoin reserve in 2025. The Nasdaq-listed digital fintech group announced on June 12 that it plans to raise $800 million to set up a Bitcoin treasury. This is part of the company’s broader vision to integrate BTC into its infrastructure and transition a portion of its reserves into a yield-generating service. At the current price, $800 million is enough to purchase an estimated &,430 BTC.
CEO, Shi Qui, strongly believes that Bitcoin will become essential to the future of finance. Mercruity will become the world’s 11th-largest corporate BTC holder if this acquisition goes through. As more companies and institutions adopt cryptocurrency for strategic purposes, we can’t help but ask, “Why is institutional adoption of BTC on the rise?” It’s becoming one of crypto’s hottest trends that many publicly-traded companies are holding BTC as part of their treasuries. A coincidence or a calculated financial move?
Bitcoin Treasury: Following a Trend or Strategy?
Publicly-traded companies are purchasing Bitcoin and buying even more in enormous amounts. Currently, Strategy (formerly MicroStrategy) holds 582,000 Bitcoins at $62.4M, accounting for nearly 2.8% of the total Bitcoin supply. The asset management firm holds more BTC than every other Bitcoin holding company and even every nation state combined, having started buying since 2020.
Undoubtedly, the Strategy set the tune for perpetual Bitcoin buying. It has sold a countless number of shares and even issued debt to grow its Bitcoin reserve. The result? Strategy’s stock price has skyrocketed 3000% in the last 5 years. The company’s success is a blueprint for other companies, which are seemingly following in Strategy’s footsteps. According to the company’s founder and chairman, Michael Saylor, on X,
“Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing smarter, faster, and stronger behind a wall of encrypted energy.”
But companies didn’t pull the trigger immediately after Strategy decided to stack up Bitcoin. Factually, it took companies four years after Michael Saylor had started buying BTC to start acquiring. Were they persuaded by Strategy’s success or the growing need to fight against inflation? We believe the perpetual buying is more than following a trend set by Strategy. Cryptocurrency is establishing a strong foothold in traditional finance. The growing number of Bitcoin treasury companies shows that companies are diversifying for various reasons.
Why Companies Are Setting Up a Bitcoin Treasury
According to BitcoinTreasuries, 223 public companies have BTC treasuries.
These reserves hold a combined 819,000 BTC, representing 3.9% of the total supply. So what’s driving the wave of strategic corporate adoption?
First is price control. Companies, governments, or individuals that hold large amounts of a cryptocurrency are whales. When a whale holds Bitcoin rather than sells it, they fuel demand. This allows the BTC price to grow over time. However, if the opposite happens, like in the case with Germany in 2024, when it offloaded 46,000 BTC to exchanges, a market sell-off ensues. Therefore, strategic reserves control prices and signal long-term confidence in the asset.
The second is a hedge against inflation. Inflation is biting hard on fiat currencies. A Bitcoin strategy is viewed as an attractive means for investors to safeguard their wealth during economic instability. Bitcoin isn’t susceptible to monetary policies that can cause inflation, nor does it have inflationary pressures. It has a fixed supply, and with more HODLing, the price drives up.
The third factor is institutional influence. With companies like Strategy and Metaplanet, HODLing Bitcoin and expanding their reserves, it legitimizes BTC and the overall cryptocurrency market in the eyes of traditional financial institutions. It indicates that Bitcoin isn’t just a speculative asset, but a viable financial instrument.
What’s Next for Corporate Companies?
Dylan LeChair, director of Bitcoin strategy at Metaplanet, said at a recent crypto conference that the world at large has no idea what’s happening. “This is a one-way train; nothing is going to stop this.” The increase in some of these firms’ stock prices may seem to validate LeChair’s statement. We anticipate that more corporations will diversify into Bitcoin soon.
However, a downturn and increased volatility may lead to a major sell-off. Companies may be forced to sell a portion of their reserves to satisfy their debts if it falls below the purchase price. Bitcoin currently trades at $104,800, down 2.2% in 24 hours.