As enthusiasm for digital assets climbs, corporate bitcoin adoption seems to be gaining momentum, with publicly traded companies taking cues from MicroStrategy’s pioneering commitment to incorporate bitcoin (BTC) into their balance sheets.
The trend kickstarted back in 2020 when MicroStrategy (MSTR) designated BTC as a Treasury asset. This decision has proved remarkably lucrative, with the company’s share price soaring nearly 2,500% since then. They’ve continually expanded their bitcoin reserve by utilizing various funding methods, such as cash, at-the-market (ATM) equity offerings, convertible debt, and more recently, preferred stock offerings.
Fast forward to 2024, and we’re witnessing an influx of companies adopting a bitcoin treasury strategy. Notable names include Metaplanet (3350), Semler Scientific (SMLR), and MARA Holdings (MARA), along with a wave of other publicly traded bitcoin miners enjoying relative success.
Now, an exciting wave of new participants is joining this financial shift. Leading the charge is KULR Technology Group (KULR), celebrating a substantial $21 million bitcoin purchase announced on a recent Monday. This strategic move boosts their total bitcoin holdings to 430 BTC, acquired at an average price of $98,393 per token.
KULR is tapping into a mix of an ATM equity program and leftover cash to finance this acquisition, evident in their embrace of a BTC yield strategy projected at an impressive 93.7% from December 2024 through January 2025. As a testament to this initiative, KULR’s share price has surged 847% since mid-November.
By January 7, an interesting pattern is emerging with several publicly traded companies announcing intentions for a bitcoin treasury strategy, albeit without yet making the leap to purchase bitcoin.
For instance, Acurx Pharmaceuticals (ACXP), currently trading on Nasdaq, received board approval on November 20 for up to $1 million in bitcoin purchases. While their share value is down 35% since mid-November, it’s still up 30% year-to-date.
A similar situation applies to Hoth Therapeutics (HOTH), also listed on Nasdaq, which gained board approval for a $1 million bitcoin acquisition on the same date but hasn’t executed the purchase yet. However, it has managed a 2% increase in share price since November 19.
Additionally, LQR House (YHC), another Nasdaq-listed firm, announced its intent on November 19 to adopt a $1 million bitcoin treasury strategy and begun accepting cryptocurrency payments with plans to retain up to $10 million in bitcoin. Their share price has surged 56% since the announcement.
Lastly, SOS Limited (SOS), listed on the NYSE, gave the green light for a $50 million bitcoin purchase on November 27, when bitcoin was valued around $93,000 per token. However, the company’s share price has dropped 30% since mid-November.
Among these players, KULR has notably experienced remarkable share price growth compared to its counterparts. Interestingly, LQR House stands out as an exception, witnessing a 57% gain during this period.
The implications of this shift are considerable. As more companies recognize the potential of bitcoin, we could be on the brink of a significant transformation in how businesses approach their financial strategies. This momentum not only reflects a changing attitude towards digital assets but also opens up a potentially lucrative path for businesses willing to engage with cryptocurrency in new ways.
