Why Companies are Doubling Down on Bitcoin as a Treasury Asset
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U.S. markets ended the week strong, with the Dow Jones hitting a record high, up 1.96%, boosted by cyclical stocks and strong retail earnings. The S&P 500 rose 1.68%, and the Nasdaq gained 1.73%, despite mixed performance among mega-cap tech stocks as investors shifted toward smaller and cyclical names.
Optimism about a resilient economy, solid earnings, and potential Federal Reserve rate cuts drove the rally, setting an upbeat tone for the holiday season.
As Bitcoin edges tantalizingly close to the $100,000 mark, its reputation is evolving from a speculative investment to a strategic asset on corporate balance sheets. Some companies are charging ahead, transforming their treasury strategies, while others remain skeptical.
MicroStrategy: Leading the Charge
At the forefront of corporate Bitcoin adoption is MicroStrategy, where Michael Saylor has made the case for Bitcoin’s role as a superior treasury asset. With an astonishing 331,200 BTC worth roughly $30 billion, the company has cemented itself as the global leader in corporate Bitcoin holdings. Its most recent purchase—51,780 BTC for $4.6 billion—only reinforces its commitment.
MicroStrategy’s strategy has so far paid off handsomely, catapulting it into the ranks of the top 100 U.S. publicly traded companies by market cap. With its stock up 600% year-to-date, the firm has demonstrated that holding Bitcoin isn’t just a risky experiment—it has become a highly profitable move in an environment increasingly supportive of cryptocurrency adoption.
Marathon Digital and the Corporate Bitcoin Ecosystem
While MicroStrategy sets the pace, others like Marathon Digital Holdings are keeping the momentum alive. Marathon recently raised $1 billion to expand its Bitcoin holdings, which now total 25,945 BTC, valued at $2.52 billion. Smaller players are also seizing the opportunity. Semler Scientific, for instance, added 215 BTC to its portfolio, while Solidion Technology has committed 60% of its operational cash flow to Bitcoin purchases.
Diverse Paths to Adoption
Bitcoin adoption isn’t one-size-fits-all. Some companies are integrating it directly into their operations. Starbucks, for example, allows customers to convert Bitcoin into dollars through its Bakkt partnership. Luxury brands like Gucci and Balenciaga accept Bitcoin as payment, appealing to tech-savvy and crypto-affluent customers.
Meanwhile, Tesla has quietly held its position, maintaining 11,509 BTC across multiple wallets. Though less vocal about its strategy, the move reflects its belief in Bitcoin’s long-term value.
Why Companies Are Racing to Buy Bitcoin
Three key factors are driving this corporate Bitcoin race:
Investment Benefits
Bitcoin offers high growth potential and diversification, making it an attractive hedge against inflation and economic uncertainty. Its finite supply of 21 million coins ensures scarcity, and companies like MicroStrategy view it as a superior alternative to cash for preserving capital over time.Market Maturity
The infrastructure surrounding Bitcoin has significantly improved. Custody solutions are more secure, and regulatory clarity has made adoption easier. Major financial institutions like Fidelity and BlackRock now offer crypto-related services, legitimizing Bitcoin as an asset class.Strategic Advantages
Bitcoin adoption provides access to tech-savvy demographics and allows companies to streamline operations using blockchain technology. Additionally, it meets growing stakeholder demands for cryptocurrency integration in business models, positioning companies as forward-thinking innovators.
The Numbers Tell the Story
Data highlights the rapid adoption of Bitcoin by businesses:
As of August 2024, companies collectively held 683,332 BTC—3.3% of Bitcoin’s total supply—a 587% increase since 2020.
U.S.-based firms dominate, holding nearly half of these reserves, worth approximately $19.7 billion.
The number of publicly traded companies with Bitcoin holdings grew by 40% in the past year, showing increasing mainstream acceptance.
Institutional interest is also surging. Spot Bitcoin ETFs attracted over $6 billion in inflows this month, with BlackRock’s iShares Bitcoin Trust leading the way, managing 471,329 BTC.
Resistance and the Path Forward
While many companies are diving into Bitcoin adoption, others remain hesitant. Activists have urged Microsoft to add Bitcoin as a reserve asset—a proposal championed by MicroStrategy’s Michael Saylor—but Microsoft’s board has recommended voting against it. This highlights ongoing debates about Bitcoin’s role in corporate finance.
Still Early in the Game
Despite these strides, it is remarkable that only 3.3% of Bitcoin’s total supply is held by businesses. The vast majority of companies have yet to take their first steps, leaving significant opportunities for those who act decisively.
As Bitcoin’s market cap grows—it recently surpassed the Taiwanese dollar to become the world’s 12th largest currency—the race to adopt it is heating up. Whether through acquisitions, operational integration, or blockchain innovation, companies that embrace Bitcoin now could gain a critical edge.
The finish line may not yet be visible, but one thing is clear: this is only the beginning of Bitcoin’s journey as a cornerstone of corporate finance. Those leading the way may find themselves in pole position as the future unfolds.
What I’m Listening To This Week 📚
Lex Fridman’s conversation with Javier Milei, President of Argentina
An in-depth look at one of the most ambitious economic transformations in modern history, and a glimpse into the mind of a world leader attempting to reshape his nation's future.
This Week By the Numbers 📈
📈 Major Market Shifts
🏛️ Regulatory & Legal Updates
SEC Chair Gary Gensler announces resignation effective January 20
Shanghai court officially recognizes crypto as property, upholds prohibition on business activities
🌍 Global Political and Economic Developments
🛠️ Tech Innovations & Announcements
💰 Crypto Headlines
Trump Media in talks to buy $400M-listed crypto marketplace Bakkt
BlackRock’s IBIT Bitcoin ETF options hit $1.9B in trading volume
🚨 Corporate News
🗳️ Political Proposals
Top Stories 🗞️
Putin says Russia launched a new missile in Ukraine. Here’s what we know
Russia launched a new non-nuclear ballistic missile with medium range on Ukraine’s Dnipro region on Thursday, Russia’s President Vladimir Putin said in a televised statement, marking another significant escalation in the 1,000-day-old war.
According to US and Western officials, the ballistic missile carried multiple warheads, which may be the first time such a weapon has been used in war.
Russia’s Defense Ministry also said its air defenses shot down two British/French-made Storm Shadow missiles, acknowledging Ukraine’s use of the longer-range weapons.
In turn, Putin updated Russia’s nuclear doctrine, with the Kremlin saying the revised military doctrine would in theory lower the bar for first use of nuclear weapons.
Elon Musk and Vivek Ramaswamy: The DOGE Plan to Reform Government
“President Trump has asked the two of us to lead a newly formed Department of Government Efficiency, or DOGE, to cut the federal government down to size. The entrenched and ever-growing bureaucracy represents an existential threat to our republic, and politicians have abetted it for too long. That’s why we’re doing things differently. We are entrepreneurs, not politicians. We will serve as outside volunteers, not federal officials or employees. Unlike government commissions or advisory committees, we won’t just write reports or cut ribbons. We’ll cut costs…
With a decisive electoral mandate and a 6-3 conservative majority on the Supreme Court, DOGE has a historic opportunity for structural reductions in the federal government. We are prepared for the onslaught from entrenched interests in Washington. We expect to prevail. Now is the moment for decisive action. Our top goal for DOGE is to eliminate the need for its existence by July 4, 2026—the expiration date we have set for our project. There is no better birthday gift to our nation on its 250th anniversary than to deliver a federal government that would make our Founders proud.”
SEC Chair Gary Gensler to step down as Trump signals pro-crypto agenda
U.S. Securities and Exchange Commission Chair Gary Gensler is leaving his post after years of leading efforts to rein in the crypto industry. Gensler plans to leave on January 20, 2025, according to a statement released by the agency on Thursday.
During his time at the SEC, which started in April 2021, Gensler led efforts to push for central clearing in Treasury markets, implemented changes on executive pay versus performance and continued working to shield investors in crypto markets.
Gensler had become a designated villain for some in the crypto industry following enforcement actions against big industry players, including Coinbase, Binance and Kraken.
Gensler has maintained that most cryptocurrencies qualify as securities and urged crypto firms to register with the SEC. Some in the crypto industry have fought back, saying that it's impossible to register with the agency, partly because rules were made for more traditional entities that are different from the digital asset industry.
California Judge’s Crypto Ruling: DAO Members Could Face Liability Under Partnership Laws
A United States federal judge has decided that participants in decentralized autonomous organizations (DAOs) can be held liable for the actions of other members under California’s partnership laws.
Particularly, Judge Vince Chhabria of the US District Court for the Northern District of California ruled that the governing body behind Lido DAO qualifies as a general partnership under state law.
This ruling has major implications for the decentralized finance (DeFi) sector, as it could legally hold DAO members responsible for the organization’s activities.
U.S. Justice Department seeks Google Chrome sale to curb monopoly
The U.S. Justice Department and a group of states proposed major changes to Alphabet Inc.’s Google — including a forced sale of the company’s Chrome web browser — after a landmark ruling that the tech giant illegally monopolized online search.
In a court filing Wednesday, antitrust enforcers said Google must divest Chrome, citing the judge’s earlier ruling that the browser “fortified” the company’s dominance. The agency and states said that they would also prefer a divestiture of the Android smartphone operating system. But, recognizing that Google and others might oppose that, they instead proposed a series of limits on the business unit.
The government recommended the Chrome divestiture to “permanently stop Google’s control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet,” according to the filing.
“DOJ’s wildly overbroad proposal goes miles beyond the Court’s decision. It would break a range of Google products — even beyond Search — that people love and find helpful in their everyday lives,” Kent Walker, the company’s chief legal officer, wrote in a statement on the company’s website.
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Until next week,
Tatiana Koffman & Katherine MacLellan
About the Author: Tatiana Koffman
Hi there and thanks for reading! If you stumble upon my newsletter, you will notice that I write about money, economics, and technology. I hold a JD/MBA and spent my career in Capital Markets working across Mergers & Acquisitions, Derivatives, Venture Capital, and Cryptocurrencies. I write to make financial topics more accessible and create equal opportunity for the next generation of investors. Currently working as a proud General Partner at Moonwalker Capital.
(More about me 👉 here).
About the Author: Katherine MacLellan
Katherine holds an MA (Hons) in Economics and International Relations from the University of St. Andrews, and a JD from Osgoode Hall. She has been thinking and writing about Bitcoin and blockchain technology since 2012.
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