Michael Saylor, the CEO of MicroStrategy (MSTR), made headlines in August 2020 when he decided to use a combination of debt and equity to add Bitcoin to his company’s balance sheet. Since then, MicroStrategy has acquired over 580,000 BTC, now valued at about $40.6 billion. Its stock price has surged over 2,900%, compared with the S&P 500’s 76% gain.
Saylor’s approach involves issuing debt or equity to fund Bitcoin purchases. His goal was simple: let Bitcoin drive shareholder returns. As Bitcoin’s price rose, MicroStrategy’s balance sheet benefited. Other companies have taken notice.
Growing Number of Bitcoin Treasury Imitators
Public companies holding Bitcoin in their treasuries have grown significantly. Since 2023, these businesses have increased their digital asset investments by 160% and now hold roughly 3.4% of all bitcoins in circulation, according to Bernstein analyst Gautam Chhugani.
Bernstein and Coinkite data show that 80 companies have adopted the “Bitcoin Standard,” meaning they hold Bitcoin as part of their reserves. Many are using new equity offerings or debt to fund these purchases. Their aim is to copy MicroStrategy’s share-price success even if their core businesses are unrelated to cryptocurrency.
High-Profile Companies Join the Trend
Two well-known names outside of crypto have made bold moves recently:
Trump Media Technology Group (DJT): This media company, controlled by former President Trump’s family, announced plans to raise $2.5 billion. Those funds would build one of the largest Bitcoin treasuries in the public markets. “We view Bitcoin as the ultimate tool for financial freedom,” said CEO Devin Nunes. Shares fell about 10% after the announcement.
GameStop (GME): The meme-stock poster child revealed it had purchased 4,710 BTC, costing over $500 million at the time. GameStop’s stock also dropped roughly 10% following the news.
These cases highlight how even companies with no prior crypto focus are betting on Bitcoin to boost long-term value.
New Entrants and SPAC Backers
Several newer firms have sprung up to emulate Saylor’s model:
Twenty One Capital Inc.: Backed by SoftBank, Tether Holdings, and Cantor Fitzgerald, Twenty One has raised $685 million through bond and stock offerings. It is now the third-largest corporate holder of Bitcoin. The company plans to go public via Cantor Equity Partners (CEP). Since announcing its SPAC deal in April, Twenty One’s shares have jumped 300%. CEO Jack Mallers said, “Investors should always be careful not to think they are intellectually superior to the market… Bitcoin’s track record speaks for itself.”
Nakamoto Holdings (NAKA): This firm is combining a Bitcoin‐treasury strategy with SPAC mergers. It plans to acquire other Strategy copycats, aiming to create a platform of 25 similar companies within a year. Freedman, David Bailey, founder of BTC Inc. and Trump’s crypto adviser, will become CEO after the merger. Nakamoto has raised $710 million via equity and short-term loans, including backing from Jihan Wu, co-founder of Bitmain. It is using medical-software firm KindlyMD to go public and has seen its stock rise 370% since announcing the listing on May 12.
Risks and Challenges
While Bitcoin’s price rose about 57% over the past year, peaking above $109,000 in January, it also dropped below $80,000 in April amid market volatility. This swings demonstrate the risks of a leveraged Bitcoin‐treasury model. “A rapid decline in the price of bitcoin could lead to bankruptcy,” warned David Yermack, a professor at NYU Stern School of Business.
Bernstein’s Chhugani added that MicroStrategy’s scale is hard to replicate. “Not all bitcoin vaults can simply copy MSTR’s strategy and succeed,” he wrote. Smaller firms may struggle to use debt effectively to buy large quantities of BTC without jeopardizing their balance sheets if prices fall sharply.
Expert Perspectives
Michael Saylor told a conference in Orlando, “If you want to make your money 10x, buy Bitcoin. If you want to make your money 100x, buy Bitcoin with other people’s money. If you want to make your money 1,000x, buy Bitcoin with other people’s money and leverage it.” He argues that traditional markets have consolidated around major tech names, leaving small, low-growth companies with few paths to significant returns—Bitcoin provides that path.
Omid Malekan, a professor at Columbia Business School, compared the trend to the meme-stock craze: “It’s almost like a meme stock phenomenon… Whatever is good in a market where the numbers are going up, it can be a problem in a market where the numbers are going down.”
Despite these warnings, many investors remain enthusiastic. They believe Bitcoin’s long-term growth will justify the risks. But the volatility of crypto markets means imitation of Saylor’s strategy could succeed or fail dramatically, depending on timing and execution.
