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CASE STUDIES: COMPANIES LEADING THE WAY

MICROSTRATEGY

MicroStrategy was the first major corporation to adopt Bitcoin as its primary treasury reserve. The company's bold strategy of accumulating Bitcoin has positioned it as a benchmark for corporate Bitcoin adoption. Its holdings have grown significantly, reflecting CEO Michael Saylor’s long-term vision of Bitcoin as a superior store of value.

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YEAR STARTED BUYING BITCOIN: 2020

Number of Bitcoins: 38,250 BTC

Value in USD: ~$425 million

CURRENT YEAR: 2024

Number of Bitcoins: 446,400 BTC
Value in USD: $43,111 billion

A PIONEER IN CORPORATE BITCOIN TREASURIES

Initial Strategy:

  • In August 2020, MicroStrategy invested $250 million to purchase 21,454 BTC, describing cash as a "melting ice cube."

  • Over subsequent months, it issued convertible notes and used excess cash flow to acquire additional Bitcoin.

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Scaling Up:

  • By 2024, MicroStrategy had invested a total of $4.68 billion into Bitcoin, at an average price of $21,287 per BTC.

  • The company’s Bitcoin strategy involved leveraging debt markets, including issuing bonds and selling shares to fund further purchases.

Performance Metrics:

  • In 2024, MicroStrategy’s Bitcoin holdings were valued at ~$15.2 billion, contributing significantly to the company’s overall valuation.

  • Its stock price surged by over 500% in 2024, driven largely by the performance of its Bitcoin holdings.

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Analysis:

  • MicroStrategy’s aggressive accumulation of Bitcoin has made it a high-risk, high-reward investment. While the strategy ties the company’s fortunes to Bitcoin’s market performance, the returns have been substantial during periods of price appreciation.

METAPLANET

Metaplanet, a Japanese investment firm, has taken a methodical approach to integrating Bitcoin into its treasury. Starting in 2024, the company began consistent weekly purchases of Bitcoin, reflecting a long-term vision for digital assets. Through innovative shareholder initiatives and strategic fundraising, Metaplanet is positioning itself as a leader in Bitcoin adoption across Asia.

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YEAR STARTED BUYING BITCOIN: MAY 2024

Number of Bitcoins: 19.87 BTC

Value in USD: ~$550,000

CURRENT YEAR: Dec 2024

Number of Bitcoins: 1,142 BTC
Value in USD: ~$111.30 million

STRATEGIC BITCOIN ACCUMULATION

Initial Strategy:

  • In May 2024, Metaplanet entered the Bitcoin market with an initial purchase of 19.87 BTC for ~$550,000.
    This marked the beginning of its foray into digital assets, aimed at diversifying its treasury and hedging against currency depreciation.

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Scaling Up:

  • Following the initial acquisition, Metaplanet adopted a consistent purchasing strategy, rapidly expanding its holdings.

  • By December 2024, the firm had acquired approximately 1,018 BTC, valued at ~$69.49 million.

Performance Metrics:

  • The value of Metaplanet’s Bitcoin holdings increased significantly within seven months, reflecting both strategic accumulation and Bitcoin’s price appreciation.

  • The company also launched a $62 million fundraising initiative to further invest in Bitcoin.

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Analysis:

  • Metaplanet’s approach showcases its confidence in Bitcoin as a key asset for treasury diversification. By scaling up gradually and committing to ongoing acquisitions, the firm has minimised market timing risks while positioning itself as a leader in corporate Bitcoin adoption.

SEMLER SCIENTIFIC

Semler Scientific, a healthcare technology company, embraced Bitcoin in 2024 as part of its treasury strategy. The firm’s bold move to allocate significant capital to Bitcoin underscores its confidence in the asset’s inflation-resistant and growth-oriented characteristics. This decision has positively impacted its financial performance and market perception.

YEAR STARTED BUYING BITCOIN: 2024

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CURRENT YEAR: 2024

Number of Bitcoins: 581 BTC

Value in USD: ~$40 million

Number of Bitcoins: 2,084 BTC
Value in USD: ~$203.06 million

A PIONEER IN CORPORATE BITCOIN TREASURIES

Initial Strategy:

  • In May 2024, Semler Scientific allocated $40 million to acquire 581 BTC at an average price of ~$68,850 per Bitcoin.

  • The decision marked a strategic shift, adopting Bitcoin as its primary treasury reserve asset.

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Scaling Up:

  • Between November and December 2024, Semler acquired an additional 303 BTC for $29.3 million, demonstrating an ongoing commitment to Bitcoin.

  • The firm expanded its equity program, raising $100 million to fund further Bitcoin purchases.

Performance Metrics:

  • By December 2024, Semler’s Bitcoin holdings grew to 1,873 BTC, valued at ~$147.1 million.

  • Its stock price doubled in 2024, reflecting investor confidence in the company’s innovative treasury strategy.

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Analysis:

  • Semler’s move highlights the growing role of Bitcoin as a strategic asset for non-tech companies.

  • By integrating Bitcoin into its financial framework, Semler has successfully positioned itself as a forward-thinking player, leveraging the asset’s inflation resistance and long-term growth potential.

TESLA

Tesla, led by CEO Elon Musk, disrupted traditional treasury strategies by investing heavily in Bitcoin in early 2021. The company’s initial move reflected a forward-looking approach to diversifying its cash reserves. Despite subsequent adjustments, Tesla’s Bitcoin involvement has played a pivotal role in legitimising cryptocurrency in corporate finance.

YEAR STARTED BUYING BITCOIN: 2021

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CURRENT YEAR: Dec 2024

Number of Bitcoins: ~43,200 BTC

Value in USD: $1.5 billion

Number of Bitcoins: 9,720 BTC
Value in USD: ~$946.52 million

A STRATEGIC AND CONTROVERSIAL APPROACH TO BITCOIN

Initial Strategy:

  • In January 2021, Tesla made a $1.5 billion Bitcoin purchase, representing about 7.7% of its gross cash position.

  • This decision was part of Tesla’s strategy to maximise returns on cash reserves and hedge against inflation.

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Scaling Down:

  • In Q2 2022, Tesla sold 75% of its Bitcoin holdings, citing liquidity concerns during COVID-19 lockdowns.

  • This sale generated $936 million in cash, demonstrating Bitcoin’s liquidity as an asset.

Performance Metrics:

  • As of October 2024, Tesla holds ~11,509 BTC, valued at ~$765 million.

  • While the initial investment saw periods of substantial appreciation, market volatility highlighted the risks of holding Bitcoin.

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Analysis:

  • Tesla’s cautious adjustments to its Bitcoin holdings underscore the challenges of balancing cryptocurrency volatility with cash flow needs.

  • Despite reducing its holdings, Tesla remains a high-profile advocate for Bitcoin, influencing corporate adoption globally.

BLOCK INC.

Block Inc., formerly Square, has seamlessly integrated Bitcoin into its business model, reflecting a deep commitment to cryptocurrency’s transformative potential. Under the leadership of CEO Jack Dorsey, the company has not only invested in Bitcoin but also built products that promote its adoption.

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YEAR STARTED BUYING BITCOIN: 2020

Number of Bitcoins: 4,709 BTC

Value in USD: $50 million

CURRENT YEAR: 2024

Number of Bitcoins: ~8,363 BTC
Value in USD: ~$814.28 million

A PIONEER IN BITCOIN INTEGRATION

Initial Strategy:

  • In October 2020, Block made its first Bitcoin purchase of $50 million, representing 1% of its total assets.

  • The investment aligned with the company’s mission of financial empowerment and innovation in payments.

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Scaling Up:

  • In February 2021, Block added 3,318 BTC for $170 million, increasing its holdings to 8,027 BTC.

  • By September 2024, the company held ~8,363 BTC, with a cost basis of $241.1 million.

Performance Metrics:

  • Block reported $2.42 billion in Bitcoin revenue in Q3 2023, up 37% year-over-year, showcasing the profitability of its Bitcoin services through Cash App.

  • Gross profits from Bitcoin reached $45 million during the same period, reinforcing its operational integration.

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Analysis:

  • Block’s approach combines direct Bitcoin investments with ecosystem development, including Bitcoin mining chip innovation.

  • This dual strategy positions Block as a leader in corporate Bitcoin adoption, influencing both the financial and technological aspects of the cryptocurrency industry.

MARATHON DIGITAL HOLDINGS

Marathon Digital Holdings, one of the largest publicly traded Bitcoin mining companies, has strategically positioned itself as both a major Bitcoin holder and miner. Through a combination of direct purchases and mining operations, Marathon has built a substantial Bitcoin reserve, solidifying its status as a leader in the corporate Bitcoin ecosystem.

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YEAR STARTED BUYING BITCOIN: 2021

Number of Bitcoins: ~4,813 BTC

Value in USD: ~$150 million

CURRENT YEAR: Dec 2024

Number of Bitcoins: ~44,394 BTC
Value in USD: ~$1.6 billion

A LEADER IN BITCOIN MINING AND RESERVES

Initial Strategy:

  • Marathon began its Bitcoin journey in January 2021 by purchasing 4,813 BTC for $150 million at an average price of $31,168 per Bitcoin.

  • The direct purchase complemented its mining efforts, ensuring exposure to Bitcoin's price performance beyond mining operations.

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Scaling Up:

  • By 2024, Marathon had scaled its Bitcoin holdings to ~44,394 BTC through a combination of mining and reinvestment.

  • The company significantly expanded its mining infrastructure, deploying advanced ASIC miners to enhance operational efficiency.

  • Marathon used profits from mining to acquire additional Bitcoin, reinforcing its position as both a producer and accumulator of the asset.

Performance Metrics:

  • As of 2024, Marathon’s 44,394 BTC holdings were valued at ~$1.6 billion, reflecting substantial growth in both mining output and market value.

  • Marathon consistently mines over 1,200 BTC per quarter, demonstrating its operational scale and efficiency.

  • The company’s stock price tracks Bitcoin’s performance closely, offering investors a proxy exposure to the cryptocurrency market.

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Analysis:

  • Marathon Digital Holdings exemplifies how Bitcoin mining companies can leverage their production to build significant reserves.

  • Its strategy of reinvesting mining profits into Bitcoin has positioned it as a key player in the corporate Bitcoin ecosystem.

  • While its dependency on Bitcoin’s price exposes it to volatility, Marathon’s operational efficiency and large-scale reserves make it a resilient and influential force in the market.

CONCLUSION

The adoption of Bitcoin by corporations like Tesla, Block Inc., MicroStrategy, Semler Scientific, and Metaplanet highlights its role as a strategic treasury asset. Post-COVID challenges, including inflation, interest rate volatility, and fiat currency devaluation, are driving treasurers globally, including in the UK, to explore Bitcoin as a hedge.

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The US leads with 49.3% of corporate Bitcoin holdings worth $19.7 billion, but the UK’s robust financial sector and openness to digital assets position it to follow. Bitcoin’s fixed supply, verifiable scarcity, and uncorrelated nature make it an attractive store of value. Companies like MicroStrategy show its potential for long-term returns, while Block Inc. and Tesla demonstrate its role in innovation and liquidity management.

 

Smaller businesses, such as Real Bedford F.C., highlight how Bitcoin adoption boosts engagement and financial stability. The club uses Bitcoin as a reserve asset, achieving a 500% attendance increase in two years, showing its relevance beyond large corporations.

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New accounting standards under IFRS (aligned with global updates like FASB’s fair value rules) simplify Bitcoin holding for UK companies by addressing valuation and impairment issues. Combined with Bitcoin’s inflation hedge potential and 24/7 liquidity, these updates make it a strategic asset for diversifying treasuries and preparing for a digital future.

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As UK businesses navigate economic uncertainty, Bitcoin offers innovation and resilience, solidifying its role in modern treasury strategies.

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