Over the past five years, a remarkable trend has emerged among public companies: the adoption of Bitcoin as a treasury asset. This movement, pioneered by firms like MicroStrategy (NASDAQ: MSTR), has transformed the way corporations think about their balance sheets, risk management, and even their market positioning. For investors, understanding this shift is critical, as it not only signals a new era in corporate finance but also offers unique opportunities and risks.
The Rise of Bitcoin Treasuries
The trend began in earnest in 2020, when MicroStrategy announced it would hold Bitcoin as its primary treasury reserve asset. Since then, dozens of public companies—ranging from technology and finance to healthcare and even traditional retail—have followed suit. As of May 2025, over 79 public companies globally now hold Bitcoin on their balance sheets, collectively owning more than 688,000 BTC valued at tens of billions of dollars. This figure has surged in recent quarters, with corporate Bitcoin holdings up 16.11% quarter-over-quarter in Q1 2025 alone.
The list of adopters is diverse. Besides MicroStrategy, notable names include Tesla (NASDAQ: TSLA), Block (NYSE: XYZ, formerly NYSE: SQ), Marathon Digital Holdings (NASDAQ: MARA), Riot Platforms (NASDAQ: RIOT), Semler Scientific (NASDAQ: SMLR), and even GameStop (NYSE: GME).
LEEF Brands Inc. (CSE: LEEF) (OTCQB: LEEEF) recently made history as the first publicly traded cannabis company to adopt a dedicated Bitcoin treasury reserve strategy and fully integrate Bitcoin into its business operations. To further support this initiative, the company launched a $5 million Bitcoin-backed debenture offering, with proceeds earmarked for additional Bitcoin acquisitions and operational growth.
LEEF’s Bitcoin strategy is multifaceted: beyond holding Bitcoin on its balance sheet, the company now accepts Bitcoin for B2B transactions and enables Bitcoin point-of-sale payments at its flagship dispensary, The Leaf at El Paseo. This integration is rooted in Bitcoin’s ability to address the unique banking and financial challenges faced by the cannabis industry, such as limited access to traditional banking and high transaction costs. By embracing Bitcoin, LEEF aims to enhance shareholder value, provide financial resilience, and align itself with the decentralized, apolitical, and sovereign principles that both the cannabis and Bitcoin communities value.
Each of these companies has cited a range of motivations, but the underlying rationale is consistent: Bitcoin is seen as a strategic asset with unique properties that traditional treasury instruments lack.
Why Companies Are Buying Bitcoin
There are several key reasons why public companies are allocating a portion of their treasuries to Bitcoin:
- Inflation Hedge and Store of Value: With a fixed supply of 21 million coins, Bitcoin is often viewed as a hedge against inflation and currency debasement. In a world of unprecedented fiscal and monetary stimulus, companies are seeking assets that can preserve purchasing power over the long term.
- Diversification: Traditional treasury assets like cash, government bonds, and money market funds offer stability but limited returns. Bitcoin, with its historically high returns, provides a way to diversify risk and potentially enhance long-term performance.
- Liquidity and Flexibility: Bitcoin’s global, 24/7 market allows companies to access liquidity at any time, a significant advantage for firms with international operations or those needing to move funds quickly.
- Brand and Investor Appeal: Holding Bitcoin signals innovation and forward-thinking, which can attract new investors and improve a company’s public image.
- Strategic and Competitive Advantage: As more companies adopt Bitcoin, others feel pressure to follow suit to remain competitive, both in terms of financial performance and market perception.
The Growth Trend
The growth in corporate Bitcoin holdings has been exponential. In 2020, only a handful of companies held Bitcoin. By early 2025, that number had exploded to nearly 80, with total holdings exceeding 688,000 BTC. This surge has outpaced the rate of new Bitcoin issuance, meaning that public companies are now buying more Bitcoin than miners can produce. Analysts project that if current trends continue, public companies could hold over 2.3 million BTC—more than 11% of the total supply—by the end of 2026.
This rapid adoption is fueled by several factors: improved regulatory clarity, the introduction of Bitcoin ETFs, and accounting rule changes that make it easier for companies to report Bitcoin at fair market value. As a result, CFOs and boards are increasingly comfortable with Bitcoin as a reserve asset.
Bitcoin vs. Stock Market Performance
Over the past five years, Bitcoin has dramatically outperformed major stock market indices. While the S&P 500 and NASDAQ have delivered strong returns—doubling and nearly tripling, respectively—Bitcoin’s gains have been orders of magnitude greater. From 2020 to 2025, Bitcoin returned approximately 1,080%, compared to about 100% for the S&P 500 and 174% for the NASDAQ Composite.
However, this performance comes with significant volatility. Bitcoin’s price swings are much larger than those of traditional equities, and its correlation with the stock market has increased in recent years. During periods of market stress, Bitcoin often moves in the same direction as the S&P 500 but with greater intensity, amplifying both gains and losses.
Despite this volatility, long-term holders have been rewarded. Companies like MicroStrategy have seen their market capitalization and share prices rise dramatically, in part due to the appreciation of their Bitcoin holdings. For investors, this means that companies with Bitcoin treasuries can offer leveraged exposure to Bitcoin’s price movements, potentially enhancing returns but also increasing risk.
Why Investors Should Pay Attention
For investors, the rise of Bitcoin treasuries presents both opportunities and challenges:
- Enhanced Returns: Companies that have adopted Bitcoin as a treasury asset have, in many cases, outperformed their peers and the broader market. MicroStrategy, for example, has outperformed every company in the S&P 500 over the past five years.
- Leveraged Exposure: Investing in companies with large Bitcoin holdings can provide leveraged exposure to Bitcoin’s price movements, as these firms often issue debt or equity to fund additional purchases.
- Diversification: Bitcoin’s unique properties—scarcity, global liquidity, and independence from traditional financial systems—can help diversify a portfolio and reduce concentration risk.
- Risks and Volatility: Bitcoin’s volatility means that companies with large holdings are exposed to significant price swings. Investors should be prepared for the possibility of steep declines as well as outsized gains.
- Market Dynamics: The growing demand from public companies is creating upward pressure on Bitcoin’s price, as corporate buying now exceeds new supply. This could lead to further price appreciation if the trend continues.
The adoption of Bitcoin as a corporate treasury asset is one of the most significant developments in finance over the past five years. Public companies are leading the charge, driven by the desire to hedge against inflation, diversify their holdings, and position themselves as innovators. For investors, this trend offers a new way to gain exposure to Bitcoin’s potential upside, but it also comes with heightened risk and volatility.
As more companies join the movement, the impact on both corporate balance sheets and the broader financial markets will only grow. Investors who understand this dynamic—and the unique opportunities it presents—will be better positioned to navigate the evolving landscape of corporate finance.
