BTC on Balance Sheets: Publicly Traded Corporate Crypto Adoption is Ramping Up

BTC on Balance Sheets: Publicly Traded Corporate Crypto Adoption is Ramping Up

About one year ago, we witnessed a new phenomenon in cryptocurrency adoption: Publicly traded companies started adding BTC to their balance sheets. Currently only one percent of BTC is held by publicly traded companies, but that is a heck of a lot more than last year. This may not seem like much; however, this one percent represents a sprouting seed, which has a good chance of growing into a flourishing tree of corporate BTC adoption! In this article, we will be taking a look at the four most influential publicly traded companies that have added BTC to their balance sheets, within the last year.

Coinbase

Coinbase is an interesting one, as the company has been holding BTC since 2012; although, Coinbase was not publicly traded until April 14th of 2021. Coinbase Currently holds 4,500 BTC on their balance sheet as well as an estimated 23,000 ETH tokens, for a grand total of crypto assets worth north of $300 million. Coinbase recently announced their plans to purchase $500 million worth of BTC while furthermore allocating 10% of its quarterly profits into a crypto-assets portfolio.

Tesla

Although the exact number is unknown, Tesla is estimated to have somewhere in the neighborhood of 40,000 BTC. Tesla purchased $1.5 Billion worth of BTC earlier this year to quote “maximize returns on their cash” as the electric car company mentioned in their SEC filing. As Tesla CEO Elon Musk made it abundantly clear to the world within the last few months, he is very much on the fence regarding his opinions on cryptocurrency. This has led some people to speculate that Elon intentionally pumped the cryptocurrency market, prior to Tesla selling 10% of their BTC holdings to quote prove its liquidity to its shareholders. Speculation aside Elon has recently taken a bullish stance regarding BTC as we learned during Jack Dorsey’s B-Word conference.

MicroStrategy

The next company on our list is none other than the first company to publicly announce their purchase of BTC: MicroStrategy. On August 11th of last year MicroStrategy announced that it had purchased approximately 21,500 BTC at the aggregate purchase price of $250 million. Since the company’s initial BTC purchase, MicroStrategy shares have risen roughly 423% from its closing price on August 10th of 2020. MicroStrategy announced on June 21st of this year that they have purchased an additional 13,000 BTC for approximately $490 million.

Being a Bitcoin-bull himself, Michael Saylor is the primary reason MicroStrategy purchased BTC. Sailor pushed for MicroStrategy to purchase BTC because he believes that it makes sense for the company to hold its assets in a currency which is less likely to be inflated away. Sailor currently holds almost 18,000 BTC – in his own wallet – which he purchased at $10,000 each on average.

Square

On October 8th of last year square announced the purchase of slightly over 4,700 BTC at an aggregate price of $50 million. Since then, square has purchased an additional 3,300 BTC last February, likely due to the incredible amount of revenue the company generated from BTC transactions accredited to its Cash App subsidiary. Square purchased BTC because it reportedly “aligns with the company's purpose.”

In Conclusion

The adoption of BTC by publicly traded companies is more than likely to continue as time goes on. The impact of BTC purchases on the stock prices of publicly traded companies is likely to entice others to do the same!

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