Public Companies Holding Bitcoin Doubles in Weeks

Bitcoin treasury adoption by public companies has become a new focus for cryptocurrency speculators, according to Adam Back, co-founder and CEO of Blockstream and the inventor of Hashcash. Back noted that the trend of companies buying Bitcoin to increase their share value is becoming the new altcoin season for speculators. He advised investors to consider dumping altcoins into Bitcoin or Bitcoin treasuries, as firms are increasingly using various funding methods to accumulate more of the world’s first cryptocurrency.

This trend is part of a broader wave of corporate Bitcoin adoption, with the number of public companies holding Bitcoin doubling since June 5. At least 240 public companies now hold Bitcoin on their balance sheets, up from 124 firms just weeks ago, accounting for roughly 3.96% of the total BTC supply. This shift is driven by the potential for significant returns on investment as more companies recognize the value of holding Bitcoin in their reserves.

Back previously predicted that institutional and government adoption would make Bitcoin a $200 trillion market opportunity. He believes that Bitcoin treasury firms are front-running hyperbitcoinization, a theoretical future where Bitcoin becomes the world’s largest global currency, replacing fiat money due to its inflationary economics. However, there are growing concerns for shareholders, as seen with Japanese investment firm Metaplanet’s Bitcoin premium soaring to $596,154 on May 27, meaning stockholders are paying more than fivefold for Bitcoin exposure via Metaplanet shares.

Despite these concerns, Back argued that Bitcoin-focused firms offer a possible path to recover losses from altcoins. He encouraged investors to find a way out of altcoins and suggested that they could make back their losses by switching to Bitcoin through treasury companies. This shift is driven by the potential for offsetting losses from altcoin investments by investing in Bitcoin or firms that have significant Bitcoin holdings.

Corporate adoption continues to accelerate, with Nasdaq-listed Mercurity Fintech Holding announcing plans to raise $800 million to establish a “long-term” Bitcoin treasury reserve. Three days earlier, Paris-based cryptocurrency company The Blockchain Group also announced plans to raise $340 million for a corporate Bitcoin treasury, signaling growing institutional interest. Despite their lack of momentum, altcoins are also benefiting from institutional adoption, with Interactive Strength, a Nasdaq-listed fitness equipment manufacturer, announcing plans to raise $500 million to establish a Fetch.ai (FET) token treasury.

This trend of Bitcoin treasury adoption is not just about financial gains; it also represents a strategic move by companies to diversify their assets and hedge against inflation. By holding Bitcoin, companies can protect their value from the depreciation of fiat currencies and benefit from the potential appreciation of Bitcoin over time. This strategic shift is likely to continue as more companies recognize the benefits of holding Bitcoin as part of their treasury strategy, making it a key driver of growth in the cryptocurrency market.