Smaller Firms Reap Huge Gains Following MicroStrategy’s Bitcoin Treasury Strategy

Key Points:

• MicroStrategy’s bold Bitcoin treasury strategy holdings have skyrocketed its stock (MSTR) to record highs, achieving an $85B market cap and cementing its role as a BTC evangelist.
• Smaller firms like Rumble, Metaplanet, and Semler Scientific follow MicroStrategy’s lead, while mega-cap companies like Microsoft remain cautious despite calls from Michael Saylor.

According to CNBC, MicroStrategy has been all-in on Bitcoin treasury strategy for some time now, holding $37 billion worth of BTC.

MicroStrategy’s $37 Billion Bitcoin Treasury Strategy Boosts Growth

That daring approach has sent its stock price soaring to all-time highs, pushing its market capitalization up to $85 billion. Co-founder and executive chairman Michael Saylor preaches that Bitcoin is the best form of capital, telling CNBC recently that it outperforms traditional benchmarks such as the S&P index.

Saylor’s evangelism doesn’t stop at MicroStrategy. He aggressively promotes the idea of other companies taking up Bitcoin as a reserve asset. “Bitcoin on the balance sheet was once exclusive to crypto-natives but is now going mainstream,” said Nathan McCauley, CEO of Anchorage Digital. “Publicly traded companies are exploring excess Bitcoin treasury strategy cash allocation toward Bitcoin.”

Read more: MicroStrategy Convertible Notes Continues Boosted to Raise $2.6B

Smaller Companies Follow Bitcoin Reserve Trend

While small-cap firms like Metaplanet and Semler Scientific have started hoarding Bitcoin, mega-caps like Microsoft are slower. Saylor’s offer of a private meeting with Microsoft CEO Satya Nadella was rejected, but he is pushing on with a three-minute pitch to the board. If Microsoft, which boasts a $3 trillion market capitalization, accepts Bitcoin, it will be the most significant corporate owner of the cryptocurrency.

“Mega-caps have the cash but lack the incentive, given their focus on core business growth,” noted Bernstein analysts. They see potential instead among smaller firms with surplus cash and weaker core businesses, pointing to MicroStrategy’s ability to successfully navigate prior bear markets as a model.

Interest in Bitcoin as a corporate reserve asset is growing despite the uncertainty. Video platform Rumble announced plans this week to allocate as much as $20 million in BTC, a sign that adoption extends beyond tech giants.