Bitcoin Adoption Surges as Public Companies Double Holdings

Blockstream CEO Adam Back has declared that the altcoin season is over, advising investors to shift their focus towards Bitcoin and Bitcoin treasury stocks. This statement comes as public companies increasingly accumulate Bitcoin through various financial strategies, including convertible notes and equity offerings. Back's remarks highlight a growing trend where these firms are buying Bitcoin repeatedly to increase their Bitcoin per share, making them attractive to investors seeking exposure to Bitcoin without directly holding the asset.

According to BitcoinTreasuries.NET, the number of public companies holding Bitcoin has more than doubled since June 5, rising from 124 to over 240. Collectively, these companies now hold approximately 3.96% of Bitcoin’s total supply. Back, a long-time advocate for institutional adoption as a path to "hyperbitcoinization," believes that Bitcoin-focused companies offer a potential lifeline to traders stuck in underperforming altcoins. He suggests that these traders might be able to recover their losses by switching to Bitcoin through treasury companies.

However, some Bitcoin treasury firms are facing scrutiny due to the high premiums investors are paying. For instance, Metaplanet, a Japanese investment firm, traded at a premium of over $596,000 per BTC-equivalent on May 27, raising concerns about overvaluation. Despite this, the momentum behind corporate Bitcoin adoption continues to grow. On June 12, Nasdaq-listed Mercurity Fintech Holding announced an $800 million raise to establish a long-term Bitcoin reserve. Days earlier, France-based Blockchain Group revealed plans to raise $340 million for a similar move.

While altcoins lack the same traction, institutional interest hasn't vanished entirely. Interactive Strength, a Nasdaq-listed fitness tech firm, recently announced plans to raise $500 million to create a Fetch.ai token treasury, indicating that selective altcoin bets still hold appeal. This move suggests that some companies are still exploring the potential of altcoins, particularly those with real-world utility.

Bitcoin adoption has also gained momentum at both the national and state levels. Last week, Texas became the first U.S. state to create a publicly funded Bitcoin reserve, following the passage of Senate Bill 21 signed by Governor Greg Abbott. The reserve, overseen by Texas Comptroller Glenn Hegar, is designed as a standalone fund separate from the state treasury. This initiative marks a significant step in the institutional adoption of Bitcoin at the state level. On the Federal front, President Donald Trump signed an executive order establishing a strategic Bitcoin reserve, further solidifying Bitcoin's role in national financial strategies.

While Texas moves ahead with its Bitcoin reserve, other states are retreating from similar efforts. Florida, Arizona, and several others have recently scrapped or vetoed crypto legislation over concerns about volatility and the long-term viability of digital assets. This mixed response highlights the ongoing debate and varying levels of acceptance for cryptocurrencies within different regions.