As Bitcoin’s value soars to new heights, more companies across various industries are jumping on the bandwagon, hoping to replicate the success that MicroStrategy’s Michael Saylor has achieved by transforming his software firm into one of the largest corporate Bitcoin holders in the world. The latest to follow his lead are companies from industries as varied as biopharmaceuticals, fitness equipment, and battery production.
MicroStrategy began its Bitcoin journey in 2020, converting a large portion of its reserves into the cryptocurrency. Since then, the company has seen its stock price rise dramatically—by over 30 times. As Bitcoin continues its upward momentum, now hitting new records, at least 12 other companies that were previously uninvolved with crypto have announced their own Bitcoin-buying plans. This shift could signal a new trend of mainstream corporate Bitcoin adoption, according to some market analysts.
Recent examples include biotech firm Anixa Biosciences, which saw a 19% increase in its stock price after revealing its plans to diversify its treasury with Bitcoin. Fitness equipment company Interactive Strength also saw an initial 80% stock surge after announcing its plan to purchase up to $5 million in Bitcoin. Other companies such as Hoth Therapeutics, LQR House, and Cosmos Health have followed suit, though many have seen only temporary gains.
Despite the initial excitement, experts caution that these moves may not bring long-term success. Youwei Yang, chief economist at BIT Mining, notes that while Bitcoin’s popularity has grown, the practice of companies buying Bitcoin as a treasury reserve could be short-lived, with many firms possibly overstating the value of the asset. For smaller companies, such announcements might be viewed as “gimmicks” rather than strategic decisions, raising concerns about the sustainability of such investments if Bitcoin’s value takes a downturn.
The capital markets have played a key role in MicroStrategy’s ability to fund its Bitcoin purchases, with the company raising significant funds through stock sales and debt offerings. However, experts warn that smaller firms may not have the same access to capital and could risk losing investor confidence if Bitcoin’s price stabilizes or declines. David Siemer, CEO of Wave Digital Assets, highlighted the risks of using leverage to fund Bitcoin purchases, stressing that such a strategy could lead to significant losses in a market correction.
While some view the recent flurry of Bitcoin-buying announcements as a sign of widespread adoption, others caution that it could be reminiscent of previous fads. The “blockchain” hype of the late 2010s, when companies hastily rebranded themselves to capitalize on the cryptocurrency craze, ended with many firms facing little lasting impact and, in some cases, regulatory scrutiny.
As the trend of corporate Bitcoin buying grows, it remains to be seen whether these companies will achieve the same kind of success that MicroStrategy has or if they’ll face the same fate as those who tried to ride previous speculative waves. With Bitcoin’s price hitting all-time highs, the allure of digital gold continues to draw companies, but only time will tell if this strategy proves to be a lasting success or another passing trend.
