Corporate Bitcoin Adoption Soars, but Risks Loom
Almost 200 companies now hold billions in Bitcoin, but a new report warns that only a few can dodge potential pitfalls.
Bitcoin’s corporate adoption is skyrocketing. Nearly 200 entities now own over 3 million BTC, worth about $315 billion. Since early 2024, corporate Bitcoin holdings have more than doubled.Though, not all firms can navigate the challenges ahead.
As of May 2025, 199 entities control 3.01 million BTC. Among them, 147 companies hold around 1.1 million BTC, valued at $115 billion. The trend isn’t slowing down. Analysts at Breed.VC highlight that merely holding BTC isn’t enough. Success hinges on increasing Bitcoin per share. Companies like Strategy lead with 580,000 BTC, valued at $60 billion. Their market cap stands at $104 billion, showing a 2x growth as 2024.But merely owning BTC isn’t sufficient. The key is growing holdings per share. This strategy helps firms like Strategy command a Multiple on net Asset Value (MNAV),a premium over the asset’s book value.Strategy, with 580,000 BTC, exemplifies this model. Its MNAV of 1.7x shows investors value its ability to grow holdings efficiently.
Strategy is crucial. Strategy uses convertible debt and stock issuance to buy more BTC when prices are low. They also reinvest cash flow into spot Bitcoin. This approach boosts their MNAV, a metric reflecting investor trust in management. Companies must prove they can outperform simple BTC ownership.
However, risks abound. A prolonged bear market could force weaker firms to sell, causing a death spiral. New entrants face tougher terms and higher leverage,increasing their vulnerability.
Analysts note that trust in leadership and execution is vital. Companies must demonstrate skill in managing assets. As an example, Strategy issues low-coupon debt, converting it to equity only if shares surge.They also sell shares above MNAV, buying more BTC. This method protects against dilution
