Corporate Bitcoin Adoption Surges, Stocks and Crypto Gain

US crypto-linked stocks and Bitcoin experienced a notable rise as more firms announced plans to purchase Bitcoin, signaling a growing trend of corporate adoption of the cryptocurrency. This trend was evident as the country’s four biggest crypto miners and some of its major crypto firms all closed at slight gains on June 10, extending gains after-hours.

Circle Internet Group, a stablecoin issuer, saw its shares jump 7% during the day, with a further 2.2% rise after-hours to $117.79. Crypto miner Core Scientific Inc. closed up 4.27% with a 0.87% bump after the bell, while rivals CleanSpark Inc. and MARA Holdings Inc. both climbed over 3% and jumped another 1% after-hours. Riot Platforms Inc. gained 2.74% with a 1.2% after-hours bump.

Bitcoin climbed 4% over the last day to $110,150, heading back toward its May 22 peak of $112,000 as market jitters mostly subsided amid the US and China holding trade talks. Bitcoin broke through $110,000 early on Monday’s trading session.

MicroStrategy Inc., the Bitcoin-buying giant, gained 4.71% before bumping more than 1% to $396.61. The company acquired an additional 1,045 BTC for approximately $110.2 million at an average price of $105,426. This purchase brings MicroStrategy's total Bitcoin holdings to 582,000 BTC, valued at $62 billion, with unrealized gains projected to reach $21 billion by 2025. The company's aggressive accumulation strategy underscores its confidence in Bitcoin as a store of value and a hedge against inflation.

BitMine Immersion Technologies, a Bitcoin mining equipment rental firm, announced on Monday that it bought 100 BTC for the first time to hold in reserve after a Wednesday share offering that targeted an $18 million raise. KULR Technology Group, an energy-management firm, rose 4.2% after it said on Monday that it bought another $13 million worth of Bitcoin, bringing its total holdings to 920 Bitcoin at an average purchase price of $98,760 per coin.

The Blockchain Group, a publicly traded company, is also planning to raise $342 million to further its Bitcoin treasury strategy. The company aims to acquire additional Bitcoin through an "at-the-market"-like partnership with an asset manager. Under this offering, the asset manager will purchase shares directly from The Blockchain Group on a daily basis, with the purchase price determined by either the previous day’s closing price or volume-weighted average price, whichever is higher. The number of purchasable shares will be capped at 21% of daily trading volume. This move follows The Blockchain Group’s recent purchase of $68 million worth of BTC as part of its corporate strategy to stockpile the world’s oldest cryptocurrency.

The Blockchain Group's initiative aligns with a broader trend among public and private firms that are increasingly adopting Bitcoin as part of their treasury strategies. More than five dozen public companies now hold Bitcoin on their balance sheets, with their holdings valued at a combined $82 billion. Several companies, including Treasure Global and Davis Commodities, have recently announced plans to establish Bitcoin treasuries, further fueling the trend.

KULR, an energy-management firm, has also announced plans to raise up to $300 million to fund additional Bitcoin purchases, working capital, and research and development. The firm will use an "at the market" share sales model to finance these initiatives, indicating a growing interest in Bitcoin among companies outside the traditional crypto industry.

The surge in corporate interest in Bitcoin comes as the cryptocurrency's price has risen significantly over the past year, reaching approximately $108,400. This price increase has attracted more firms to consider Bitcoin as a viable investment option, regardless of their industry ties. The growing number of companies embracing Bitcoin as part of their treasury strategies is expected to continue, driven by the cryptocurrency's potential as a store of value and a hedge against inflation.