Public Companies Diversify with Bitcoin Investments
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A slew of companies, including tech titans and even a soccer club, have joined the ranks of bitcoin bulls. Since the cryptocurrency’s peak in March, at least six entities, five publicly traded, have made significant bitcoin purchases.
MicroStrategy, the most aggressive buyer, has amassed a staggering amount of BTC, accounting for nearly all of the corporate purchases in this period. Other notable buyers include Block, Metaplanet, Semler Scientific, OneMedNet, and Real Bedford FC, owned by Bitcoin podcaster Peter McCormack.
Together, these companies have spent billions of dollars on bitcoin, capitalizing on the cryptocurrency’s dip. While the initial investment was substantial, the current market value of their holdings has slightly increased.
Volatility Bites, But Big Players Stay In The Bitcoin Game
Bitcoin took a tumble, retracing as much as 27% during market consolidation. This drop brought the price down from nearly $73,740 to $53,900, making it difficult to pinpoint the exact purchase price for some companies that I’ve been buying the dip. However, estimates suggest the average cost per coin was around $63,250.
Despite the volatility, publicly traded companies haven’t been scared off. This trend extends back over four years, with at least fifteen different companies adding BTC to their portfolios since MicroStrategy’s first purchase in August 2020 (following the sale of Voice.com for $30 million).
It’s worth noting that the actual number of companies accumulating bitcoin is even higher. The figure of fifteen only includes publicly traded companies outside of BTC mining or digital asset management—companies that haven’t disclosed specific purchase dates, making cost basis calculations on BitcoinTreasuries.net impossible.
A Visual Tale of Corporate BTC Accumulation
The chart above paints a vivid picture of corporate bitcoin adoption, showcasing purchases made by companies ranging from Latin American e-commerce giant MercadoLibre to South Korean video game publisher Nexon.
However, the chart doesn’t account for Tesla’s significant BTC divestment, where they sold approximately 75% of their holdings, equating to 33,480 BTC worth roughly $2.1 billion, between April 2021 and July 2022. Additionally, some data points are estimated due to unspecified disclosure timings.
The chart also includes estimated purchases for Block, the fintech firm founded by Jack Dorsey. Block has implemented a dollar-cost averaging strategy, allocating 10% of its gross bitcoin-related profits from Cash App towards monthly BTC acquisitions.
Block, the fintech giant, is steadily adding to its bitcoin holdings. With a quarterly bitcoin-related gross profit of $67 million in Q2 2024, Block is allocating approximately $2.2 million per month to purchase bitcoin, which translates to roughly 34.6 BTC at current prices.
The broader corporate landscape is also witnessing a surge in Bitcoin adoption. In 2024, at least 32 companies will have made BTC purchases, marking a significant increase compared to previous years. This growing trend indicates that BTC is gaining traction as a strategic asset for corporations.
