Corporates' Fomo On Bitcoin Leads To Increased Adoption As Reserve Asset

Over 60 Publicly Listed Companies Are Holding Bitcoin As A Treasury Reserve Asset

The report addresses the recent wave of corporates jumping on the Bitcoin adoption bandwagon as they believe Trump's support is a green light to stack the flagship cryptocurrency. In November, seven public companies announced that they had bought or planned on buying Bitcoin for their treasury reserves.

Earlier today, one company spent 1 million to accumulate Bitcoin and on average two companies a day are adopting the digital currency as a reserve asset. This is in addition to all of the firms that are already getting Bitcoin exposure through the spot BTC exchange-traded funds ETFs .

This number is only going to rise as Trump takes office in January 2025 and Bitcoin and the broader cryptocurrency market react to his policies reversing Biden-era enforcement actions on crypto-related activities. As per a market review, the adoption of Bitcoin as a corporate treasury asset is gaining momentum across industries as they recognize its potential as a store of value and a hedge against inflation.

Firms such as MicroStrategy, Marathon Digital Holdings, Hut 8 Mining Corporation, KUKR Technology Group, Block Inc,. and Coinbase is leading the charge and inspiring others to add Bitcoin to their balance sheets.

Bitcoin's decentralized nature, finite supply, and growing adoption are what's attracting corporates looking to diversify and strengthen their portfolios. As the macroeconomic conditions evolve, more companies will adopt the apex cryptocurrency to preserve value and capitalize on its potential appreciation.

MicroStrategy is the pioneer in Bitcoin adoption among public companies. The business intelligence and cloud services firm first began acquiring Bitcoin for its treasury in August 2020. As of today, it holds 444,262 BTC, valued at 41.9 billion, making it the largest corporate holder of the digital asset.

Its co-founder and executive chairman, Michael Saylor, has championed Bitcoin as a superior store of value and transformative financial asset for corporate treasuries.

Last week, MicroStrategy bought 561 million worth of Bitcoin, continuing its streak of weekly purchases that began last month. However, the latest purchase is considered to be pocket change when compared to the 1.5 billion purchase announced on December 16 and the 2.1 billion disclosed on December 9.

As per a filing with the U.S. Securities and Exchange Commission SEC, the Bitcoin purchase was funded with equity sales of 561 million, which is part of an "at-the-market" sales under the 21 billion Bitcoin acquisition program announced by the company in late October.

American video-sharing platform Rumble recently announced its intention to incorporate Bitcoin into its treasury reserves. According to its chairman and CEO Chris Pavlovski, the strategy aligns with the firm's vision of decentralization and freedom of choice, which resonates with its global user base.

KULR Technology Group, a leader in advanced energy management systems, announced this week that it has acquired 217.18 BTC for approximately 21 million for its treasury. The move follows the company's December 4 announcement that it will be allocating up to 90 of its surplus cash to buy Bitcoin under the new treasury strategy.

Meanwhile, Nasdaq-listed Bitcoin mining firm Hut 8 Corp announced that it completed the purchase of 990 BTC, worth nearly 100 million. The company now holds a total of 10,096 BTC, valued at 1 billion, positioning it among the top ten largest corporate owners of Bitcoin in the world.

The tokens acquired through low-cost production will play a key role in establishing a financing model for its previously announced fleet upgrade. Hut 8 is in the process of acquiring 31,145 BITMAIN Antminer S21 units, which are projected to enhance its mining capacity by about 3.7 exahashes EH/s . The company is also planning on expanding its Vega site in Texas, bringing its total capacity to 9.3 EH/s. Hut 8 operates one of the largest Bitcoin mining firms in North America.

It is surreal to witness the "fear of missing out" FOMO from corporate giants adopting a Bitcoin adoption strategy. This reflects the significance that the apex cryptocurrency has in the current economic and financial climate.