Crypto Goes Corporate: How Public Companies Are Driving Bitcoin Adoption

• The increasingly common instances of companies investing treasury funds into Bitcoin justify the stock’s classification under strategic assets rather than speculative assets.
• This trend, which denotes growing institutional interest in cryptocurrencies, binds and raises several significant queries, the answers to which will concern the art of money management and its evolving theory.

In recent years, Bitcoin has facilitated an unusual penetration into mainstream finance. Dismissed as a mere fringe experiment or currencies of the dark web some time ago, today corporates inexplicably hold it on their books. What had always been a bold experiment of a few tech-savvy firms has very quickly become a strategy many are starting to interrogate now.

Why do public companies invest in Bitcoin? Is it inflation-hedging, an opportunity for higher returns, or just connecting with a generation of new investors? Looking at prominent companies that have led this journey and the larger economic backdrop against which these steps have been taken can help clarify the bigger picture of corporate Bitcoin adoption.

The Shift Toward Bitcoin Begins

In the year of 2020, with the worldwide economy severely impacted by the COVID-19 pandemic, central banks unleashed monetary stimulus never before experienced. From printing trillions of dollars, the interest rates soon found a massive free fall; meanwhile, inflation appeared to creep along.

With traditional safe havens like government bonds offering negligible or negative returns, companies with large cash reserves started to look for alternative stores of value. Bitcoin, often referred to as “digital gold” due to its capped supply of 21 million coins, started to appear on the radar of CFOs and corporate treasurers.

MicroStrategy Lights the Fuse

In August 2020, MicroStrategy, a publicly traded business intelligence firm, made headlines by investing $250 million in Bitcoin. Its CEO, Michael Saylor, framed the move as a response to weakening fiat currencies and rising inflation risks.

MicroStrategy didn’t stop there. It continued to purchase Bitcoin through a combination of cash reserves and debt financing. By mid-2024, the company held over 200,000 BTC, valued at more than $13 billion.

This was more than a financial experiment. It was a declaration that Bitcoin could serve as a corporate treasury reserve.

Tesla Adds Momentum

A few months later, in early 2021, Tesla joined the movement. The electric vehicle maker announced a $1.5 billion Bitcoin investment in a regulatory filing. It briefly accepted Bitcoin as payment for its cars, though that decision was later reversed due to environmental concerns around Bitcoin mining.

Tesla’s move gave Bitcoin adoption at the corporate level a huge visibility boost. It also sparked debates around sustainability, volatility, and the role of crypto in corporate finance.

Financial Firms and Fintech Players Enter the Scene

Not long after, Square (now Block Inc.) invested $50 million in Bitcoin, followed by another $170 million. CEO Jack Dorsey has been a long-time Bitcoin advocate, viewing it as a tool for economic empowerment and decentralisation.

Coinbase, the largest US-based cryptocurrency exchange, also holds Bitcoin on its balance sheet. Mining firms like Marathon Digital and Hut 8 maintain significant Bitcoin holdings as part of their operating strategy.

The Rise of Institutional Participation

Beyond these early adopters, a growing number of institutional investors and asset managers are exploring exposure to Bitcoin. Some are adding it to their portfolios through exchange-traded products or custodial services. Others are forming internal committees to evaluate the risks and opportunities of digital assets.

This shift isn’t about hype. It’s a response to changing financial realities:

• Persistent inflation
• Low real yields on traditional assets
• Growing mainstream acceptance of digital currencies

Accounting and Regulatory Headwinds

Despite the momentum, the road isn’t without bumps. Bitcoin’s volatility can be a double-edged sword for corporate treasurers. Its classification under existing accounting rules, particularly in jurisdictions like the US and UK, it presents challenges. Bitcoin is often treated as an intangible asset, requiring companies to write down its value if prices fall, even if they don’t sell it.

Regulators are also playing catch-up. In the UK, the Financial Conduct Authority (FCA) is reviewing how companies should account for and disclose digital asset holdings. Meanwhile, global standard-setting bodies are slowly laying the groundwork for consistent treatment of cryptocurrencies across borders.

Strategic Implications

For companies considering Bitcoin, this is more than a financial decision. It’s a strategic one.

Some see Bitcoin as a hedge against currency debasement. Others use it to signal tech-forward thinking or align with younger consumers and investors who are more crypto-literate.

There are also reputational risks. The environmental impact of Bitcoin mining has drawn criticism. Firms must weigh the optics and be prepared to answer questions from stakeholders.

Questions for Corporate Leaders

If you’re in a position of financial leadership, here are questions worth exploring:

• Would a small allocation to Bitcoin (1-5% of reserves) improve long-term diversification?
• Are your investors and board members aligned on the risks and rewards?
• Do you have internal expertise or access to advisors with crypto knowledge?
• What message would holding Bitcoin send to your customers and partners?

Steps to Consider if You’re Exploring Bitcoin

1. Start with Education: Understand the fundamentals of Bitcoin. Know what you’re buying.
2. Establish Governance: Create internal policies for digital asset management.
3. Consult Legal and Tax Advisors: Each jurisdiction has unique considerations.
4. Choose a Custody Provider: Security is critical. Explore options like Fidelity Digital Assets, Coinbase Custody, or BitGo.
5. Begin Small: A small pilot programme can help you understand operational dynamics before scaling up.

Visualising the Trend

Publicly listed companies holding Bitcoin as of 2025 include:

• MicroStrategy
• Tesla
• Block Inc.
• Coinbase
• Marathon Digital
• Galaxy Digital
• Mode Global Holdings (UK)

Together, they hold hundreds of thousands of BTC, representing billions of dollars in value.

Looking Ahead

Bitcoin’s journey into the world of corporate finance is still in early stages. But the foundational arguments for its inclusion are gaining credibility.

For companies, investors, and financial professionals, the message is clear: it’s time to pay attention. Digital assets are not going away. Their role in treasury strategy, risk management, and brand positioning will only grow.

Whether or not you choose to invest, understanding this shift is now part of financial literacy in the modern age.