As interest in digital assets grows, many publicly traded companies are now following MicroStrategy’s example by adding Bitcoin to their balance sheets. MicroStrategy began this trend in 2020, leading to a dramatic increase in its share price. Recently, firms like KULR Technology Group and Acurx Pharmaceuticals have announced their own Bitcoin treasury strategies, with KULR making a significant $21 million Bitcoin purchase. This second wave of corporate adoption includes various companies planning to invest in Bitcoin, potentially boosting their Market positions. Overall, the trend shows a growing acceptance of Bitcoin among publicly listed firms as they seek to enhance their treasury assets.
As more businesses recognize the potential of digital currencies, a noticeable trend is emerging: companies are now adding Bitcoin to their balance sheets, following the example set by MicroStrategy. This shift signifies a new era in corporate Bitcoin adoption.
MicroStrategy first made headlines in 2020 when it started using Bitcoin as a treasury asset. Since then, its stock has skyrocketed nearly 2,500%. The company has continually increased its Bitcoin holdings through various funding methods, including cash purchases and equity offerings.
In 2024, several companies joined the movement, implementing Bitcoin treasury strategies. Notable among them are Semler Scientific, MARA Holdings, and Metaplanet, contributing to a growing list of firms that see value in holding Bitcoin.
The latest to enter this trend is KULR Technology Group. Recently, KULR made headlines with a $21 million Bitcoin purchase, increasing its holdings to 430 BTC. The company has funded this acquisition through an ATM equity program and surplus cash. Since the announcement, KULR’s share price has surged by 847%, reflecting positive investor sentiment.
Other companies like Acurx Pharmaceuticals, Hoth Therapeutics, and LQR House have also expressed intentions to invest in Bitcoin but have yet to finalize their acquisitions. Acurx and Hoth each plan to invest up to $1 million, while LQR House has decided to retain some of its cryptocurrency payments in Bitcoin.
Additionally, SOS Limited has outlined plans to invest $50 million in Bitcoin, although its stock has faced challenges. Meanwhile, Enlivex Therapeutics is set to invest $1 million in Bitcoin, showing that interest in this digital asset is not slowing down.
This growing trend of Bitcoin treasury strategies among publicly traded companies is not just a passing fad; it reflects a significant shift in how corporations view digital assets. As more firms join the fray, the impact on Bitcoin’s overall demand could be substantial, further legitimizing Bitcoin as a serious reserve asset for businesses.
Disclaimer: The analyst writing this piece holds shares in MicroStrategy (MSTR) and Semler Scientific (SMLR).
Keywords: Bitcoin treasury, MicroStrategy, digital currency adoption
Secondary Keywords: corporate Bitcoin adoption, KULR Technology Group, cryptocurrency investments
What is corporate Bitcoin adoption?
Corporate Bitcoin adoption is when companies start using Bitcoin as a part of their financial strategy. This can include buying Bitcoin as an investment, accepting it as a form of payment, or using it for transactions.
Why are companies adopting Bitcoin now?
Many companies see Bitcoin as a way to diversify their assets. With rising inflation and global economic changes, they believe Bitcoin can provide stability and growth. Plus, more people are interested in using Bitcoin, which makes it appealing for businesses.
What are the benefits of companies using Bitcoin?
Using Bitcoin can help companies with:
– Lower transaction fees compared to traditional banking.
– Faster payments that can cross borders easily.
– Attracting tech-savvy customers who prefer using digital currencies.
Are there risks in adopting Bitcoin?
Yes, there are risks. Bitcoin’s price can be very volatile, which means it can go up and down a lot in a short time. Companies need to carefully consider how much they want to invest in it and how to manage this risk.
How can businesses get started with Bitcoin?
Businesses can start by setting up a digital wallet to store Bitcoin. They can also partner with cryptocurrency exchanges to buy Bitcoin. Finally, they should keep up with regulations and best practices to ensure safe and compliant use of Bitcoin in their operations.