Bitcoin finds corporate homes.

4 Min Read
4 Min Read
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Public companies are changing the way they manage their cash. They don’t just park their money in the bank anymore. Reports reveal that more than $100 billion is currently held by companies that treat Bitcoin as part of their major reserves. The move drew big names into the mix and caught the eye of investors everywhere.

Digital asset finance companies are taking root

According to a latest report from Galaxy Research, the new group of digital asset financing companies or DATCOS holds around 792,000 BTC (approximately $93 billion) and 1.31 million ETH (approximately $4 billion).

These figures amount to almost 4% of all Bitcoin and 1.1% of Ethereum’s total supply. These companies will mix digital coins with cash and gold, staking some ETH to get more operational on assets that stay idle.

Corporate playbooks shift

Much of the data is more than just buying and retaining. They use stock offerings in the market when the stock price is traded above its net asset value. This allows you to turn additional shared values into fresh encryption.

Some people cut transactions through private placements or Spack mergers. They report large unrealized profits when the market gathers.

Some are now sitting on a billion dollar paper profits. New participants, such as games and tech companies, will add layer 1 tokens to increase yields rather than chasing price increases.

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Bitcoin is currently trading at $112,928. Chart: TradingView

Most of these companies are in the US for deep capital market access, but the trend is widespread. Companies listed overseas are currently copying the models. Their moves increase crypto liquidity and link inventory performance closer to token prices.

However, there is a dark side to this shift. Panic sales could continue if the stock premium collapses or regulators intervene. Some data trades the on-book cryptographic values up to 10 times. That gap suggests a bubble.

Investor’s Watch Points

It reports that around 160 public companies together manage nearly 1 million BTC. Over 35 of these companies each have over $120 million in digital assets.

Investors need to track not only what the book is about, but how much real exposure companies carry. A big swing in token prices can hit stock prices hard.

If this model continues to grow, the global market will be viewed. Some companies may add Stablecoins or other tokens. Others may face stricter accounting rules and seek clearer disclosure.

US regulators and overseas authorities will ask questions immediately. When that happens, the pressure could force companies to rethink large crypto bets.

Unsplash featured images, TradingView charts

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