- Wintermute analyst Jake Ostrovskis predicts increased corporate interest in Bitcoin by 2025, with SMEs joining larger firms in adopting Bitcoin as part of their balance sheets.
- MicroStrategy’s “playbook” of large Bitcoin acquisitions, now totaling 444,262 BTC, and strategies like issuing convertible notes, are inspiring similar moves by firms like Marathon Digital and Riot Platforms.
The number of companies adding Bitcoin (BTC) to their balance sheets is likely to grow in 2025, according to Jake Ostrovskis, an OTC trader at market-making firm Wintermute.
Ostrovskis said there’s increasing interest from corporations and institutions in gaining exposure to Bitcoin, with small and medium-sized enterprises (SMEs) also expected to join the trend.
Hop on the Bitcoin Train
MicroStrategy, a prominent example of corporate bitcoin adoption, has purchased US$10B (AU$16B) worth of Bitcoin and plans to acquire US$42B (AU$67.5B) more using equity financing.
Bitcoin mining companies like Marathon Digital (MARA) and Riot Platforms (RIOT) have followed suit, issuing convertible notes to fund additional Bitcoin purchases.
These strategies, often called the “MicroStrategy playbook”, seek to strengthen company balance sheets and increase stock value by leveraging bitcoin investments.
Ostrovskis noted that this trend complements the growing impact of Bitcoin exchange-traded funds (ETFs), enabling pension and sovereign wealth funds to enter the market. But he also stated that corporates may act more quickly with their more flexible capital than institutional investors tied to traditional funds.
Traditional hedge funds, previously awaiting ETFs for crypto access, are also entering the market. These firms are now applying equity trading strategies to cryptocurrencies, reflecting a shift in their investment approaches.
Ostrovskis predicts that similar strategies could soon extend to Ethereum:
It’s probably only a matter of time until a company transforms itself into an Ethereum investment vehicle, becoming the MicroStrategy of that space.
Jake OstrovskisYet not everyone is convinced that Bitcoin is the only way to strengthen a company’s balance sheet. Microsoft recently rejected Saylor’s pitch in which he tried to convince the firm’s board to add a portion of the treasury into BTC.
Related: Virtuals Protocol, Aave and Pudgy Penguins Lead Crypto Market Recovery
Just Bitcoin
As reported by CNA, MicroStrategy and Japan-based Metaplanet have added to their Bitcoin holdings in their latest purchases, further cementing their strategies of long-term BTC acquisition.
MicroStrategy, led by Michael Saylor, revealed the purchase of 5,262 BTC at a cost of US$561M (AU$902M), averaging US$106,662 (AU$171,555) per coin. This brings the company’s total holdings to 444,262 BTC, acquired at an average price of US$62,257 (AU$100,134) per coin, totaling US$27.7B (AU$43B).
Meanwhile, Metaplanet, often called the “MicroStrategy of the East”, purchased an additional 619.7 BTC for approximately ¥9.5B (AU$96M). This acquisition brings its total holdings to 1,761.98 BTC for ¥20B (AU$20M), averaging ¥11,846,002 (AU$120,637) per coin.
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