Cryptocurrency

The Soaring Price of Bitcoin Entices Companies to Join the Fray.

The number of publicly traded companies holding bitcoin globally rose from 89 at the beginning of April to 113 by the end of May. Among these companies, the largest holder boasts a staggering 580,000 bitcoins in its reserves. This emerging trend signals a growing acceptance and integration of bitcoin into the mainstream investment landscape.

Administrator

23 August, 2025

Michael Saylor’s software company, Strategy, has accumulated 580,000 bitcoins so far, solidifying its position as the world’s largest publicly traded bitcoin holder. Image source: coinstats

Bitcoin has surged 50% from its lows in early April to an all-time high of $111,965 last week. This has sparked a wave of companies rushing to raise capital through stock or bond issues, aiming to use the proceeds to buy and hoard large amounts of bitcoin or other cryptocurrencies, capitalizing on investor enthusiasm in the market.

On May 27, Trump Media, a media company run by former President Donald Trump’s family, confirmed plans to raise $2.5 billion to build a “bitcoin treasury.” Specifically, about 50 institutional investors committed to investing $1.5 billion to buy Trump Media shares through a private placement and an additional $1 billion to purchase convertible bonds.

According to BitcoinTreasuries.net, the number of publicly traded companies holding bitcoin has increased from 89 in early April to 113 as of May 26. These companies hold over 800,000 bitcoins, worth approximately $88 billion.

Many companies are trying to emulate the success of software company Strategy, which has accumulated 580,000 bitcoins, worth over $60 billion on the market.

Aaron Chan, a digital asset strategist at market maker Flow Traders (Netherlands), explains that favorable market conditions, such as the easing of the US-China trade war and lower cryptocurrency market volatility, are supporting the issuance of additional shares and bonds aimed at raising capital to purchase bitcoin.

“As long as this trend continues, investors will return to the market, trying to create the next Strategy,” he said.

Some of the biggest names in the cryptocurrency market are gathering in Las Vegas for the annual bitcoin conference taking place from May 27 to 29. Last year, speaking at this conference, Trump pledged to make America the “bitcoin superpower of the world” if elected president.

Twenty One Capital is among the companies tapping the capital market to buy bitcoin, planning to raise $585 million through private stock and convertible bond issues. To execute this plan, Twenty One Capital agreed to merge with ‘blank check’ company Cantor Equity Partners, run by Brandon Lutnick, son of US Secretary of Commerce Howard Lutnick.

Twenty One Capital is expected to launch with a treasury of 42,000 bitcoins, making it the world’s third-largest publicly traded bitcoin holder, after Strategy and MARA Holdings. The main partners contributing to this bitcoin reserve include Tether (issuer of the stablecoin USDT), SoftBank, and Bitfinex exchange.

Asset management company Strive Asset Management (US) and bitcoin mining company American Bitcoin, partly owned by Trump’s sons, have announced similar merger deals to become publicly traded, facilitating easier access to the capital market.

On May 27, Strive announced a target of raising up to $1.5 billion to support its “first wave of bitcoin purchases.”

Earlier this month, ‘blank check’ company Nakamoto Holdings announced a merger with healthcare company KindlyMD to establish a bitcoin treasury. David Bailey, CEO of Nakamoto, stated that the company is developing various financial products related to bitcoin to attract investors.

For many business leaders in the cryptocurrency industry, Strategy, founded by billionaire Michael Saylor, remains the prime example of how the stock market is being utilized to tap into bitcoin investment demand.

In 2020, the billionaire began buying bitcoins for Strategy’s reserves. He transformed Strategy into a highly leveraged investment vehicle, sensitive to bitcoin price movements. Strategy’s large-scale bitcoin purchases were funded by selling common stock, preferred stock, and convertible bonds.

This effort boosted the company’s valuation faster than bitcoin’s price appreciation. Strategy’s current stock market capitalization stands at $101 billion, while the market value of its bitcoin holdings is approximately $64 billion. This is because investors bet that the value of the company’s bitcoin holdings will increase faster than the dilution of its shares.

Executives and investors argue that Strategy’s aggressive bitcoin buying has helped support bitcoin’s price.

“Twenty One Capital’s initiative to establish a bitcoin treasury, along with similar plans from other companies, is increasing the demand for bitcoin. This is a catalyst for bitcoin’s price to go higher,” said Christophe Roehri, deputy CEO of digital asset management company TOBAM, which owns $3.9 million worth of Strategy shares.

Cryptocurrency executives hope that the wave of bitcoin buying with equity capital will increase bitcoin’s scarcity, pushing prices higher. Bitcoin’s supply is limited to 21 million coins. Companies involved in merger deals to raise capital to buy bitcoin are seeing their stock prices rise.

Shares of Gryphon Mining, the acquisition target of American Bitcoin, have surged about 120%. Meanwhile, KindlyMD’s stock has soared 540% since they announced the merger deal with ‘blank check’ company Nakamoto Holdings on May 12.

On May 27, KindlyMD confirmed the purchase of 21 bitcoins at an average price of $109,027 each as part of its bitcoin treasury strategy.

Shares of Asset Entities, the target of Strive Asset Management’s acquisition, have skyrocketed 1,240% since the merger agreement between the two companies was disclosed.

However, analysts warn that replicating Saylor’s success will not be easy.

“Market demand for bitcoin-linked equities will not materialize automatically,” said Patrick Bush, a digital asset investment analyst at asset management firm VanEck.

Other analysts doubt that the scale of bitcoin buying from newcomers will be large enough to support bitcoin’s price.

TOBAM’s Roehri noted that Strategy only owns 2.7% of the total circulating bitcoin supply. This percentage is still small compared to traditional financial markets such as stocks.

Flow Traders’ Chan warned that Trump’s erratic tax policies could dampen investor enthusiasm for publicly traded companies raising capital to buy bitcoin.

By Lê Linh (Financial Times)