MicroStrategy (MSTR) generated a number of pleasure from public market traders searching for publicity to bitcoin (BTC)-backed fairness after founder Michael Saylor inspired different firms to repeat his leveraged technique.
The method spawned just a few success tales like MetaPlanet (MTPLF).
That in any other case forgettable lodge operator has rallied over 1,000% because it began including BTC to its steadiness sheet in April 2024. Diagnostic tools firm Semler Scientific (SMLR) has additionally greater than doubled because it began including BTC to its steadiness sheet.
The query is easy, but its reply is shrouded by confounding variables.
In brief, the historical past of firms who invested closely in BTC is a blended bag of winners and losers. Under is a few knowledge to start the method of answering this query.
Is steadiness sheet bitcoin a good suggestion for public firms?
First, to state the plain, investing in an asset that subsequently rallies is clearly a worthwhile technique. In 2024, the value of BTC rallied 120% — trouncing the benchmarks of another main asset class. Clearly, any BTC funding rewarded company holders final yr.
With this “rising tide lifts all boats” caveat in thoughts, listed below are some knowledge factors of public firms which have adopted a BTC acquisition technique.
Tesla
Tesla was truly one of many first public firms to purchase BTC. Within the early morning of February 8, 2021, the world discovered that it had purchased $1.5 billion price of BTC and it introduced plans to just accept it as fee for its electrical autos.
On the day of the announcement, Tesla opened for buying and selling 2% increased than its prior shut — a sign that traders appreciated the motion. Nonetheless, that day marked the best worth it will see for the subsequent eight months.
For no matter cause, Tesla’s acquisition of BTC initiated an eight-month bear market that wouldn’t finish till October 18, 2021.
On the day of the announcement, Tesla opened for buying and selling 2% increased than its prior shut.
Unsurprisingly, Tesla’s Elon Musk was fast to forsake BTC. The corporate suspended its acceptance of the crypto as a fee technique lower than three months after accepting it.
Shortly thereafter, the corporate bought a big chunk of its BTC, citing considerations about Bitcoin’s environmental influence. Conveniently, this choice got here after Musk had begun praising Dogecoin (DOGE).
Tesla presently owns 9,720 BTC, lower than 0.1% of its market capitalization.
MARA (previously Marathon Digital Holdings)
On the day of its first announcement, MARA opened for buying and selling at $19.50. Quick-forward 4 years to yesterday’s $18.30 shut and the frustration is clear.
Over the identical interval, the S&P 500 together with dividends has rallied 63%. That respectable return compares favorably to MARA’s -6%.
Over the previous 4 years, MARA has acquired BTC mining services from Generate Capital, added one other Texas-based mining facility, and quadrupled its top-line income.
None of these accomplishments helped shareholders because it began including BTC to its steadiness sheet.
Over the previous 4 years, MARA has quadrupled its top-line income.
Genius Group
Genius Group first pivoted into crypto by elevating a $1.5 million seed spherical to develop Genius Metaversity, a digital campus. The corporate additionally minted a fancy NFT.
Nonetheless, it wasn’t till November 12, 2024, when the corporate debuted a “bitcoin treasury reserve strategy” and acquired its first 110 BTC on November 18.
Genius Group purchased its first 110 BTC on November 18.
Rumble
On November 25, 2024, video content material platform Rumble introduced its personal BTC treasury technique. It stated it will purchase as much as $20 million in BTC “at the discretion of the company.”
Nonetheless, in a collection of constructive developments unrelated to its BTC purchases, Rumble started attracting political speech consideration and M&A curiosity from varied suitors in early December, with Tether investing a beneficiant $775 million later that month.
Not lengthy afterward, Rumble introduced a cloud settlement in El Salvador.
After a cornucopia of constructive headlines from Rumble, shares have rallied considerably because the firm introduced its intention to accumulate BTC.
Though shareholders are definitely completely satisfied, Rumble doesn’t truly rely as a hit story on the subject of steadiness sheet BTC.
Sadly, Rumble has solely ever introduced its intention to have its board contemplate a small BTC buy. To date, there’s no indication the corporate has truly bought BTC as a reserve asset.
Furthermore, even when the corporate has bought its most allocation, its purchases would have solely been for “up to $20 million” price of BTC, which is lower than 0.6% of Rumble’s present market capitalization.
Though these losers are a disappointing sobriety test for some, there are just a few firms which have considerably rallied after buying BTC as a company reserve asset. Semler Scientific, MetaPlanet, and clearly MicroStrategy are marquee standouts.
MicroStrategy has acquired 2,530 BTC for ~$243 million at ~$95,972 per bitcoin and has achieved BTC Yield of 0.32% YTD 2025. As of 1/12/2025, we hodl 450,000 $BTC acquired for ~$28.2 billion at ~$62,691 per bitcoin. $MSTR https://t.co/qONdrIwz7Q
— Michael Saylor⚡️ (@saylor) January 13, 2025
MicroStrategy owns 450,000 of the 19.8 million circulating BTC.
Total outcomes of the technique are blended, nonetheless. There’s no definitive indication that merely saying a BTC treasury technique is a surefire option to appeal to capital from public markets.
That has not deterred Saylor from persevering with to market his government course to show officers of public firms so as to add leverage to their steadiness sheet with a view to purchase digital money.
