More corporations are adding bitcoin to their balance sheets, increasing demand for the cryptocurrency. This trend is especially embraced by low-growth companies, which analysts at Bernstein recommend to follow Strategy’s example.
Today, around 80 companies have already adopted the “bitcoin standard” and control about 3.4% of the total bitcoin supply, according to a report by Bernstein Research. Many are trying to replicate Strategy’s success, which was the first to implement a bitcoin treasury strategy and has already accumulated about 554,000 BTC. Over the past year, the company’s stock has outperformed both the S&P 500 index and the so-called Magnificent Seven.
Recently, other companies have followed suit: GameStop acquired $500 million worth of bitcoin, and Trump Media & Technology Group announced plans to raise $2.5 billion, partly for cryptocurrency investments.