Written by: Yangz, Techub News
In August 2020, before its name change, MicroStrategy made a shocking decision that stunned Wall Street—shifting its corporate funds reserve to Bitcoin and spending $250 million to purchase 21,454 Bitcoins, subsequently continuing to increase its holdings, initiating its own 'betting' journey. This action, which was viewed as aggressive at the time, now appears to have knocked over the first domino, gradually evolving into a global 'cryptocurrency reserve revolution' in the following years.
Initially, this movement was limited to a few technology pioneer companies. The payment platform Square, founded by Jack Dorsey, announced two months after MicroStrategy that it would invest $50 million in Bitcoin; the following year, Tesla's purchase of $1.5 billion in Bitcoin shocked the market, while Meitu became the first 'pioneer' in Asia. Although these early explorations were sporadic, they planted the seeds for the current momentum.
If the period from 2020 to 2023 is seen as an exploratory phase for corporate cryptocurrency reserves, then 2024 is undoubtedly a critical turning point for this movement. With Trump re-elected as U.S. President and promoting the 'U.S. Strategic Bitcoin Reserve Plan', cryptocurrency reserves have suddenly escalated from experimental initiatives by tech companies to another option for asset allocation by publicly listed companies. Currently, under the leadership of MicroStrategy, globally listed companies like Metaplanet are pushing this movement to a climax. This corporate-level cryptocurrency experiment is rewriting the rules of traditional asset allocation, but behind this trend lies a crucial question that needs answering: is this a forward-looking asset allocation innovation or a brewing financial crisis?
Who is 'All in' on cryptocurrency
According to data from BitcoinTreasuries.net, as of the time of writing, a total of 141 publicly listed companies hold or have previously included Bitcoin in their asset reserves (Meitu sold all its cryptocurrency holdings last December), with a total of 848,902 Bitcoins held. Among them, the largest holder, Strategy, holds 597,325 Bitcoins, accounting for as much as 70.36%.
The top 60 publicly listed companies holding Bitcoin
For the top 60 publicly listed companies holding Bitcoin, the current Bitcoin reserve landscape exhibits significant structural differentiation characteristics.
From a regional perspective, North American companies dominate, with U.S. companies leveraging aggressive strategies from tech giants like MicroStrategy to form an overwhelming advantage; MicroStrategy alone holds more than the total of other regions; in the Asian market, Metaplanet, known as 'Japan's MicroStrategy', is rapidly emerging, currently ranking among the top five globally, while the layouts of Hong Kong-listed companies like BoYa Interactive are also noteworthy; additionally, European companies exhibit a diversified participation pattern, ranging from Norway's energy giants to Germany's digital asset companies, covering a wide array of sectors despite their individual sizes being relatively small.
From the perspective of industry distribution, apart from early adopters like MicroStrategy, Tesla, and Block, companies focused on cryptocurrency business, such as Bitcoin mining firms, constitute the main force in reserves. Their holding strategies are deeply linked to mining operations and exhibit distinct operational characteristics. Other enterprises are scattered across various sectors such as healthcare, energy, gaming, and video, with their participation being more exploratory in nature and relatively smaller in scale.
It is noteworthy that the scale of holdings exhibits a typical 'pyramid' structure: the apex is controlled by a few super-large holders, the middle is concentrated with specialized institutions focused on cryptocurrency business, and the base comprises a large number of traditional companies engaging in exploratory allocations. This extremely unbalanced distribution pattern not only implies that market fluctuations will have differentiated impacts on different types of enterprises but may also sow the seeds for potential systemic risks.
In addition to Bitcoin, this cryptocurrency reserve competition has gradually expanded from the initial focus on Bitcoin to mainstream tokens such as Ethereum, SOL, XRP, BNB, and TRX, even including HYPE, TAO, and DOGE. This shift reflects that companies are building differentiated digital asset reserve systems based on their business characteristics and market demands.
According to incomplete statistics, in the field of Ethereum reserves, Nasdaq-listed company BioNexus (BGLC) was the first to establish Ethereum as a primary reserve asset, pioneering corporate-level ETH reserves. Bitcoin mining companies like Bit Digital (BTBT) and BitMine (BMNR) have also begun to bet on Ethereum. Notably, sports betting operator SharpLink Gaming (SBET), under the guidance of its chairman and Ethereum co-founder Joseph Lubin, has formulated a financial strategy centered on ETH, further enriching the diversity of the Ethereum reserve camp.
SOL has also attracted the attention of many publicly listed companies. E-commerce platform Upexi (UPXI) and education technology company Classover Holdings (KIDZ) have both included SOL in their corporate reserve assets, with Classover Holdings' $500 million SOL reserve plan being particularly noteworthy. In addition, companies like Sol Strategies (HODL.CN), DeFi Development (DFDV), and MemeStrategy (2440.HK) are also actively reserving SOL.
Nasdaq-listed energy company VivoPower International (VVPR) and technical service company Trident Digital Tech (TDTH) have also chosen to reserve XRP, while companies like Weiba International (WEBU) and Wellgistics Health have also joined the ranks of XRP reserves.
Other cryptocurrencies have also gained recognition from publicly listed companies:
BNB: Selected as reserve assets by Nano Labs (NA) and Build & Build Corporation
TRX: Became the primary reserve choice for SRM Entertainment (SRM)
DOGE: A key allocation target for Dogecoin Cash
HYPE: Favored by biotechnology company Eyenovia (HYPD)
TAO: Adopted by biopharmaceutical company Synaptogenix
It is worth noting that some listed companies adopt a mixed reserve strategy. Lion Group (LGHL) holds Bitcoin, Ethereum, and SOL simultaneously, and companies like Everything Blockchain (EBZT) and Amber International (AMBI) have also established multi-currency reserve systems.
Cryptocurrency Public Companies (Stock Codes) Ethereum (ETH) SharpLink Gaming (SBET) BioNexus Gene Lab (BGLC) Bit Digital (BTBT) BitMine Immersion Tech (BMNR) Solana (SOL) Upexi (UPXI) Sol Strategies (HODL.CN/CYFRF) DeFi Development (DFDV) MemeStrategy (2440.HK) Classover Holdings (KIDZ) XRP VivoPower International (VVPR) Weiba International (WEBU) Trident Digital Tech (TDTH) Wellgistics Health (WGRX) BNB Nano Labs (NA) Build & Build Corporation TRX SRM Entertainment (SRM) DOGE Dogecoin Cash (DOGP) HYPE Eyenovia (HYPD) TAO Synaptogenix (SNPX) Multi-Currency Lion Group (LGHL) Everything Blockchain (EBZT) Amber International (AMBI)
Driving factors for publicly listed companies to reserve cryptocurrency
Behind the decisions of publicly listed companies to allocate cryptocurrency assets lies a multifaceted consideration. From asset characteristics to market demonstration effects and changes in the policy environment, these factors all influence the current landscape of corporate cryptocurrency reserves.
The asset allocation advantages of cryptocurrency and market selection
In terms of asset characteristics, compared to traditional corporate reserve assets (including cash equivalents, short-term bonds, precious metals, etc.), cryptocurrency provides new options for corporate asset allocation due to its low correlation with traditional financial markets, all-weather liquidity, and anti-inflation characteristics. Among all the cryptocurrency reserves allocated by publicly listed companies, Bitcoin, with its leading asset status, excellent liquidity, and anti-inflation properties as 'digital gold', naturally becomes the first choice for cryptocurrency reserves. For those companies that choose to allocate other altcoins, although their choices may not be directly related to their main business, there are often special considerations behind them. For example:
Sports betting operator SharpLink Gaming chose Ethereum as its core reserve asset, closely tied to its chairman Joseph Lubin's background as a co-founder of Ethereum;
SRM Entertainment's allocation of TRX stems from its deep binding with the TRON ecosystem—the $100 million TRX token PIPE deal completed last month not only granted Sun Yuchen's father, Weike Sun, control of the company but will also lead to a name change to Tron Inc., with TRON executives fully taking over key committees.
Currently, over 90% of publicly listed companies' cryptocurrency reserves are concentrated in the top five cryptocurrencies by market capitalization, reflecting a clear 'leading effect'. This concentrated allocation not only signifies the importance that publicly listed companies place on the liquidity and market recognition of mainstream cryptocurrencies but also includes differentiated choices made by individual enterprises under special strategic considerations.
The demonstration effect of MicroStrategy and its industry impact
As the pioneer of corporate cryptocurrency allocation, MicroStrategy's demonstration effect has profoundly influenced the asset allocation strategies of publicly listed companies worldwide. Data shows that since it first announced the purchase of Bitcoin in August 2020, its stock performance has become the most intuitive success story of cryptocurrency allocation by enterprises. After a 1:10 stock split adjustment on June 1, 2021, the company's stock price soared from $12.7 (the closing price on August 10, 2020) to a peak of $131.5 on February 9, 2021, achieving an astonishing 935% increase in just six months. This performance not only far exceeded the gains of the S&P 500 index during the same period, but also created a wealth myth for tech stocks in the cryptocurrency domain.
Additionally, from September 2020 to February 2021, MSTR's stock performance significantly outperformed Bitcoin. During this period, Bitcoin's price surged from around $10,000 to approximately $58,000, an increase of 480%; meanwhile, MSTR's stock price rose from around $15 to $130, an increase of 765%. This 'crypto leverage' effect directly influenced the decisions of other publicly listed companies; shortly after MicroStrategy made significant investments in Bitcoin, Tesla announced in February 2021 that it had purchased $1.5 billion in Bitcoin. As of the time of writing, MSTR's market value has reached $112.374 billion, nearly 80 times its pre-transformation value (about $1.4 billion), establishing itself as a benchmark for Bitcoin concept stocks.
In terms of financial strategy, MicroStrategy's innovations are also pioneering. The company has built a unique model of 'low-cost financing + continuous increases' by issuing ultra-low interest convertible bonds, allowing it to continuously expand its Bitcoin reserves at extremely low costs, successfully reshaping the paradigm of corporate asset allocation. Of course, this model also comes with significant risks. For example, during the severe fluctuations in the cryptocurrency market in 2022, MicroStrategy's stock price saw a maximum single-day drop of over 27%, highlighting the vulnerability of this strategy. We will elaborate on this in the following sections.
Policy Promotion: U.S. Strategic Bitcoin Reserves and Regulatory Optimization
On March 7 of this year, the U.S. cryptocurrency policy environment welcomed a milestone shift. President Trump officially signed an executive order to launch the 'Bitcoin Strategic Reserve' and 'U.S. Digital Asset Reserve' plans, providing unprecedented policy endorsement for publicly listed companies' cryptocurrency allocations.
Additionally, at the state level, states are also actively promoting relevant legislation. Bitcoin Laws disclosure data shows that as of the time of writing, 40 states across the U.S. have proposed 164 digital asset-related legislative measures, including 48 related to 'State Bitcoin Reserve'. Among them, 17 reserve bills are being advanced or have completed the legislative process. Currently, states that have passed Bitcoin reserve bills include Texas (SB21), New Hampshire (HB302), and Arizona (HB2749).
This collaboration between federal and state-level policies is generating significant effects. The fundamental shift in the policy environment is reshaping publicly listed companies' understanding of cryptocurrency—from a high-risk speculative asset in the past to a strategically reserved asset with policy endorsement. As more state-level legislation advances, corporate cryptocurrency reserves are evolving from isolated cases to more widespread market practices.
Beyond the United States, the global cryptocurrency policy environment is also continuously improving. Countries like Japan and South Korea in Asia are gradually perfecting their regulatory frameworks, while Europe has established unified standards through the MiCA legislation. Although these measures have not directly driven national reserves, they have provided clearer policy guidance for corporate cryptocurrency asset allocation.
In-depth analysis shows that these three driving forces do not simply add up but form a significant synergistic effect: Bitcoin's scarcity and decentralization lay the foundation for value storage, MicroStrategy's successful practice validates the feasibility of the business model, and the strategic layout and regulatory improvements at the U.S. policy level provide institutional guarantees. This positive feedback loop is profoundly reshaping the logic of corporate asset management.
However, it is necessary to be cautious, as this rapid proliferation also brings new risks, especially when companies overly rely on leverage, market fluctuations may trigger chain reactions.
Dangerous Financial Alchemy
Despite an increasing number of publicly listed companies following MicroStrategy's footsteps in incorporating cryptocurrency into their corporate balance sheets, this trend conceals unsettling financial alchemy.
Taking MicroStrategy itself as an example, it has reshaped itself into a complex, highly leveraged 'Bitcoin acquisition machine', continuously increasing its Bitcoin holdings through the issuance of bonds and convertible bonds. This strategy can show astonishing power during a bull market: the appreciation of Bitcoin boosts the value of collateral, thus gaining more financing capacity and forming a self-reinforcing wealth cycle. However, once the market turns, this financial perpetual motion machine may evolve into a death spiral. A drop in Bitcoin prices will lead to a devaluation of collateral, with financing channels subsequently drying up, while high debt costs continually erode cash flow. More dangerously, as more enterprises imitate this model, the entire corporate sector's cryptocurrency holdings are forming interconnected risks, which may trigger a systemic crisis in the future.
Many market analysts are currently highly alert to the risks of publicly listed companies aggressively allocating cryptocurrency assets. Geoffrey Kendrick, head of digital asset research at Standard Chartered Bank, estimates that if the price of Bitcoin falls below $90,000, half of the companies' Bitcoin reserves will face unrealized losses; Mike Ippolito, co-founder of Blockworks, likens such asset management companies to 'GBTC of 2025', warning of the systemic risks they may bring. He points out that unlike MicroStrategy founder Michael Saylor, who can issue unsecured convertible bonds at a super-low interest rate of 0.75%, these latecomers find it difficult to obtain equally favorable financing conditions and instead face real liquidation risks. Similarly, Castle Island Ventures partner Nic Carter has also drawn parallels to the once-premium-traded GBTC, warning that when market sentiment reverses, it may replicate the chain reaction of explosions triggered by GBTC's discount in 2022.
Indeed, from the perspective of market performance, not all publicly listed companies can achieve sustained stock price increases through Bitcoin reserves like MicroStrategy. The effects of cryptocurrency reserve strategies show significant variance: there are cases like Metaplanet that have seen significant stock price increases through cryptocurrency reserves, as well as cases like SharpLink Gaming and Upexi that initially rose but later experienced substantial retracements.
Matthew Sigel, director of digital assets research at VanEck, recently issued a warning, pointing out that excessive reliance on Bitcoin reserves may lead to 'capital erosion' risks—when companies increase their Bitcoin holdings by issuing new shares or borrowing, if the stock price falls back to near net asset value, subsequent financing will dilute shareholder equity and accelerate the shrinkage of enterprise value. U.S. medical technology company Semler Scientific is a typical case, as despite the rise in Bitcoin prices, its stock price plummeted by 45%, and its market value even fell below the value of its Bitcoin holdings, severely impairing its subsequent financing capacity.
These cases reveal a harsh reality: when the main business loses growth momentum, cryptocurrency reserves resemble a shot of adrenaline rather than a cure. Over-concentration in allocation may trigger systemic risks such as liquidity crises and deterioration of capital structure.
Additionally, aside from the fact that MicroStrategy's model is difficult to replicate, there is another trend worth noting. Many publicly listed companies, in pursuit of higher returns, are opting for less liquid and more volatile small and medium-sized digital assets as reserve targets. Compared to Bitcoin, these assets often suffer from insufficient market depth, and when companies face financial pressure and need to liquidate urgently, the lack of hedging tools and emergency mechanisms can easily trigger systemic risks.
Furthermore, the uncertainty of the policy environment may cast a shadow over this trend. Currently, Bitcoin reserve bills at the state level in the U.S. are frequently stalled, and several states' legislative proposals have been rejected, while Senator Cynthia Lummis's proposal to authorize the U.S. government to gradually purchase 1 million Bitcoins over the next five years (the Strategic Bitcoin Reserve Bill) has also made no substantial progress.
Summary
The phenomenon of publicly listed companies aggressively allocating cryptocurrency reserves signifies that digital assets are moving from the margins to the mainstream, but this is by no means a guaranteed financial revolution. MicroStrategy's success story is indeed alluring, but cases of companies trapped in capital erosion and liquidity crises are equally thought-provoking.
For publicly listed companies considering following suit, it may be worth keeping in mind: cryptocurrency reserves can be a tool for asset allocation, but they should not become a financial magic trick to cover up the weakness of the main business; they can be a chess piece in strategic layout but must not degenerate into a blind speculation gamble. At this crossroads of innovation and risk, the prudent may find new value anchors, while the reckless may become a footnote to the next financial storm.
Historical experience shows that those who can withstand the test of cycles are always those companies that maintain restraint amidst frenzy and adhere to risk control bottom lines amidst innovation. The experiment of cryptocurrency reserves has only just begun, and its ultimate judge will be the ruthless test of time and market rules.
