Corporate Bitcoin Adoption: Why 2025 Will See More Tech Companies Embracing Crypto

Corporate Bitcoin adoption is on the rise as tech companies such KULR Technology Group Inc., Hut 8 Corp., MARA Holdings Inc., Rumble Inc., and MicroStrategy have embraced Bitcoin treasuries.

Additionally, Bitwise and Strive have filed new exchange-traded funds (ETFs) considering the growing trend.

What Makes Bitcoin Adoption the Current “IT Strategy”

The US-based energy management platform, KULR Technology Group Inc. has launched its Bitcoin Treasury. The company acquired 217.18 BTC with an average price of $96,556.53 per BTC coin.

KULR made a total investment of approximately $21 Million for the Bitcoin adoption. KULR plans on allocating up to 90% of its additional cash into BTC.

The company has decided to utilize Coinbase Prime to have a self-custodial wallet for its acquired BTC coins.

Hut 8 Corp. has announced its Bitcoin adoption of 990 BTC coins. The company is one of the largest Bitcoin miners in North America. It has invested $100 Million to acquire the Bitcoin, where the average price of each Bitcoin was approximately $101,710.

– Advertisement –

Post-acquisition of BTC coins, Hut 8 Corp. has a total of 10,096 Bitcoins in its reserve now. As of December 18, their market value stands at over $1 Billion. According to the sources, the company believes that its Bitcoin adoption positions it among one of the ten largest corporate BTC holders in the world.

Mara Holdings Inc., a Bitcoin mining company scaled up its Bitcoin acquisition to 40,435 BTC coins worth $3.9 Billion. Additionally, the company invested $1.1 Billion and acquired 11,774 Bitcoins. As per the Bitcoin news sources, the company acquired these many BTC coins through zero-coupon convertible note offerings. The offerings included a BTC’s average price of $96,000. Mara Holdings Inc. has a Bitcoin Yield of 47.6%.

On November 25, Rumble Inc. announced that it would allocate its surplus cash to corporate Bitcoin reserves by investing $20 Million. The Chairman and CEO of the video-sharing platform believes that the world is in the early stages of Bitcoin adoption. So, the team is excited to integrate crypto and become a leading platform that delivers video and cloud services to the crypto community.

Bitwise and Strive launch new ETFs

Bitwise plans on launching the “Bitcoin Standard Corporations ETF,” in which it will invest in companies with over 1000 BTC holdings. Additionally, those companies should meet basic liquidity requirements and size.

Those companies also need to have a market cap of above $100 million with a public free-float below 10%. Their average liquidity should be above $1 million on a daily basis.

Strive is planning to employ a unique “Bitcoin Bond ETF”. The company will target companies that have invested heavily in BTC bonds.

It will utilize its ETF to invest in convertible securities from other companies, such as Microstrategy.

Wintermute Analyst Prediction

According to Wintermute analyst, Jake Ostrovskis, the year 2025 will see a rise in Bitcoin adoption by a number of companies. Ostrovskis expects corporations and institutions, including small and medium-sized enterprises (SMEs) to create a BTC treasury. He said,

“It’s probably only a matter of time until a company transforms itself into an Ethereum investment vehicle, becoming the MicroStrategy of that space.”

Ostrovskis observed that Bitcoin adoption complements the BTC ETFs. He believes that corporates will adopt more quickly as they have flexible capital compared to institutional investors.

Is It a FOMO effect?

MicroStrategy is a pioneer of corporate Bitcoin adoption. It has acquired $10 Billion worth of BTC coins and plans to utilize equity financing for another $42 Billion worth of Bitcoins.

The company has potentially developed a fear of missing out among the corporations and institutions. Therefore, companies like Rumble Inc., KULR Technology Group Inc., Hut 8 Corp., and MARA Holdings Inc., are adopting BTC treasuries.

Additionally, Riot Platforms (RIOT) and Marathon Digital (MARA) are also following the trend by issuing convertible notes to manage additional Bitcoin holdings.