Strategy’s $472.5 million Bitcoin purchase is leading a global pattern, as firms around the world are building BTC treasuries. Corporations are pivoting to it, integrating it, and exploring altcoins as the trend matures.
Still, some experts fear a bubble, as this acquisition may cause a supply shock. If Bitcoin’s price goes down, forced liquidations could cascade through these firms with calamitous consequences.
Corporate Bitcoin Purchase Continues
Bitcoin hit another all-time high today, and corporate treasury accumulation is continually picking up steam. Strategy (formerly MicroStrategy), which first pioneered this plan, has been spearheading the drive this year with its massive purchases.
Today, Michael Saylor announced another firm commitment with a $472.5 million acquisition:
Naturally, other firms are following Strategy’s lead. Matador Technologies, which pivoted to become a BTC-first company, is bringing Bitcoin treasuries to Canada.
Today, it announced 900 million CAD ($657 million) in new stock sales over the next 25 months. Matador will use the bulk of these proceeds to buy more Bitcoin.
This doesn’t necessarily suggest Matador is the bigger buyer; it plans to do this over months, while Strategy already executed its purchase. Still, firms around the world are doing what they can to build Bitcoin treasuries.
For example, Genius Group, which bought BTC last week and the week before, announced today that it spent $3.2 million on the asset once again.
Bitcoin isn’t the only token for corporate treasury acquisition, as Solana is also leaving a big footprint. Click Holdings, a human resources and senior care firm based in Hong Kong, is exploring both assets for its $100 million stockpile.
Jeffrey Chan, Click’s CEO, said that this acquisition could lead the business to integrate crypto in other ways:
“We see immense potential in cryptocurrency to streamline operations, attract tech-savvy investors, and unlock new revenue streams. By building a robust Bitcoin and Solana treasury and integrating crypto payments, we’re not just adapting to the future; we’re leading it, delivering enhanced value to our shareholders through innovation and growth,” Chan claimed.
Still, all these Bitcoin treasuries are leading some skeptics to wonder if this is a sound investment. Corporate spending may bring a supply shock to BTC, which could impact its valuation.
Many firms are selling stock to keep buying at high prices, but this carries the risk of forced liquidation.
If a leader like Strategy liquidates its BTC, failure could cascade through the ecosystem. Such a scenario would be disastrous; on par with the great crypto exchange collapses of the past.
In short, corporate Bitcoin treasuries may yet prove to be a fad. Without a market intervention, however, it seems like the trend is speeding up, not slowing down.