Why do U.S. listed companies buy cryptocurrencies?

Imagine a company where each share not only represents a part of the business

but also comes with a small piece of Bitcoin

In recent years,

more and more publicly traded companies have begun to treat Bitcoin, Ethereum, and even other cryptocurrencies

as long-term reserve assets

and include them on their balance sheets

From small-scale experiments in 2020

to a significant surge between 2020-2025,

corporate treasury strategies are evolving,

trying to explore new asset allocation methods and break through the limitations of single fiat currency.

MicroStrategy is a pioneer of this trend.

As early as August 2020,

its CEO Michael Saylor announced Bitcoin as the company’s primary reserve asset.

Due to concerns over fiat currency devaluation,

MicroStrategy has continuously raised funds through convertible bonds and secondary offerings,

accumulating about 244,800 BTC by the end of 2024,

with a market value of approximately $9.45 billion.

In other words, they hold over 1% of the total Bitcoin supply.

Meanwhile, the company’s stock price has skyrocketed as a result,

growing approximately 20-fold since 2020.

Investors even view it as a Bitcoin substitute stock for trading.

The company’s stock movement is highly correlated with BTC.

In 2024, MicroStrategy also conducted a 10-for-1 stock split to improve liquidity.

This series of actions not only made shareholders a fortune but also created a new paradigm,

transforming the company’s balance sheet into a crypto asset vehicle,

and boosting valuation through market hype.

Initially, only a few companies followed suit.

Tesla’s $1.5 billion Bitcoin purchase in 2021 caused a sensation,

but subsequent divestments followed.

However, by 2023-2024,

this wave not only persisted but expanded.

Over 90 publicly listed companies (mainly in the US) now hold Bitcoin assets on their balance sheets.

This wave is led by the US,

closely related to the gradual improvement of the US regulatory environment.

Especially in January 2024,

with the approval of spot Bitcoin ETFs in the US,

this step significantly boosted market confidence by bringing institutional funds into the crypto space.

Less than two months later,

the US government introduced the Bitcoin National Strategic Reserve Act.

The increasingly favorable policy environment has prompted more companies to join the trend.

The most explosive case is SharpLink Gaming,

a small-cap stock that was previously unnoticed.

In May 2025, it announced a $425 million private placement led by Ethereum software giant ConsenSys,

aiming to hold ETH as a reserve asset

and become the largest Ethereum holder among public companies.

This move also attracted Ethereum co-founder Joseph Lubin to join the board.

According to the announcement, the funds will be used to purchase approximately 163,000 ETH

and include them on the company’s balance sheet.

After the news broke, SharpLink’s stock soared over 400%,

rising from about $7 to $34, doubling its market cap instantly.

This Ethereum-based MicroStrategy model indicates that mainstream interest in crypto assets beyond Bitcoin is rapidly spreading.

Another example is BTCS, a blockchain technology company.

In 2025, it raised $57 million through convertible bonds,

specifically for purchasing Ethereum and operating validator nodes.

By that year, the company held about 13,500 ETH, worth around $25 million,

a 505% increase from the first quarter.

In other words, BTCS is building an Ethereum asset pool

while earning staking rewards.

Beyond Bitcoin and Ethereum,

Solana has also begun to attract the attention of listed companies.

Earlier this year, US-listed consumer goods company UPXI and trading firm GSR

led a $100 million investment to buy and stake Solana.

Once the news broke,

UPXI’s stock surged from $2.30 to $19,

an increase of over 700%.

Market cap soared from $3 million to $24 million.

As of the reporting period, they actually hold 596,700 SOL,

valued at over $100 million.

This small company, originally focused on pet products,

has transformed into a Solana reserve company,

highlighting how enterprises can rapidly reconstruct their business models using hot assets.

They even publicly disclose the amount of tokens per share,

a move similar to MicroStrategy’s previous inclusion of BTC in US stock valuation.

What drives companies to incorporate cryptocurrencies into their financial strategies?

In short, inflation pressure and macroeconomic anxiety are core factors.

This year, global money printing has led to low cash yields, eroding asset real value.

Many companies want to allocate assets into controllable and long-term preservation fields.

Bitcoin’s scarcity is often called digital gold.

Taking MicroStrategy as an example,

its Bitcoin purchase statements clearly aim at reserve value preservation.

In the long term, Bitcoin performs well during high inflation periods, supporting its safe-haven properties.

Ethereum’s upgrades have begun to destroy inflation supply,

and its underlying ecosystem offers multiple uses like staking dividends.

High-performance chains like Solana are viewed as digital industrial raw materials,

with high risk and high potential.

Another purpose for companies acquiring crypto assets is to build a differentiated brand.

Few PR strategies can generate attention better than holding cryptocurrencies.

A little-known small company can announce a crypto-related financial strategy

and boost its stock price through a news release to attract new investors.

For example, Classover,

a Chinese online education company, announced a $500 million financing to buy crypto,

and its stock surged 40% in a single day.

These cases show that in the crypto bull market, narratives linking stocks to crypto holdings can trigger hot money flows.

This has also led to new indicators like “per-share coin content.”

Microsoft and other companies regularly publish the BTC value per share.

As of Q3 2023, each share contained about 0.012 BTC,

and in 2024, the BTC per share share increased by about 17%.

Even with stock issuance, the per-unit coin content has increased.

The previously mentioned listed company DeFi Development also issues similar announcements in quarterly reports,

for example, holding 0.293 ETH per share.

More aggressively, a Canadian-listed mining company, Cathedra Bitcoin,

publicly claims its goal is to maximize Bitcoin holdings per share.

The company turns financial goals into crypto asset accumulation,

claiming this is a new paradigm for measuring corporate performance.

This trend has also created a self-reinforcing cycle:

rising crypto prices drive up company stock prices,

and companies then raise high-level financing to acquire more crypto, further stimulating stock prices.

For example, after MicroStrategy was included in the NASDAQ 100,

the index funds buying it indirectly pushed up BTC prices.

Of course, Bitcoin remains the mainstream.

Most companies still hold large positions in BTC.

The US government has even begun discussing a national Bitcoin reserve plan.

This makes corporate BTC holdings seem like aggressive financial moves but actually resonate with national strategies.

Is this a structural trend or a cyclical bubble?

Current market conditions lean more toward the former.

Several major catalysts emerged in 2024-2025:

In April 2024, the Bitcoin halving event will reduce new coin supply growth by half,

and BTC prices have repeatedly hit new highs,

breaking the $100,000 mark by the end of 2024.

The listing of spot Bitcoin ETFs opens traditional capital channels,

and the SEC’s regulatory stance shift has accelerated institutional entry.

Analysts predict this will trigger a new wave of institutional investment.

Inflation and geopolitical risks further boost demand for non-sovereign fiat assets.

These forces are pushing crypto assets into the mainstream financial system.

However, this strategy is not without risks.

Cryptocurrency volatility can cause significant shocks to corporate earnings reports.

For example, during the 2022 Bitcoin crash,

MicroStrategy’s stock plummeted over 80% in a single day,

and its mortgage collateral nearly liquidated, causing market panic.

Additionally, rapid accounting standards require immediate impairment recognition for asset devaluation,

but appreciation cannot be reflected in earnings instantly,

leading to significant asymmetry in financial reports.

New standards are about to change this distortion,

but price volatility will still be reflected in the income statement.

Some companies’ stock prices far exceed their crypto holdings’ value, such as Japan’s Macoplanet,

whose stock price is five times Bitcoin’s price,

becoming a target for short-selling.

This suggests the market may see it as the most expensive Bitcoin ETF alternative.

But if market expectations fall short, the correction risks will be severe.

A deeper issue is whether these companies can balance core operations.

If they only raise funds chasing hot assets,

investors should beware of the true asset quality when the crypto craze subsides.

On a macro level, if large amounts of crypto assets are locked on corporate balance sheets long-term,

it could reduce circulating supply,

potentially causing supply tightness and price support,

especially after Bitcoin halving, when corporate accumulation impacts the market more significantly.

Like hidden digital gold,

but if holdings are sold due to debt or operational issues,

it could trigger chain reactions,

causing systemic shocks to the crypto market.

In the medium to long term, as more institutions hold crypto assets,

their attributes will gradually be recognized as commodity-like assets, similar to gold, or as company/national strategic reserves.

Beyond Bitcoin, other crypto assets are also transforming.

Ethereum is shifting toward digital energy assets and staking yield tools.

Solana’s corporate allocation trend is still in early stages, but if it develops,

it could trigger a new round of price multipliers.

If faced with technical or regulatory headwinds,

the withdrawal of funds could be equally rapid.

Finally, comparing with traditional assets,

historically, corporate idle funds have been allocated to government bonds, gold, or emerging market currencies.

Current trends show more companies view Bitcoin as digital gold,

Ethereum as digital energy,

and Solana as an efficient on-chain asset.

As Michael Saylor said,

Holding cash is like sitting on melting ice.

Holding Bitcoin is the future-oriented choice.

Existing data also support this view.

Over the past five years, Bitcoin prices have soared,

while the US dollar index has remained flat,

and inflation has eroded cash value.