Several companies have made significant commitments to their Bitcoin reserves this week. K Wave Media plans to purchase 88 BTC, spending hundreds of millions of USD, while DDC and Animoca are investing 100 million USD.
Ethereum is also attracting renewed interest, with some companies spending millions of USD to buy more last night. However, Bitcoin is currently the focal point for institutional capital.
Bitcoin reaching All-Time-High triggers another corporate race
The Bitcoin Treasury strategy, where companies invest large sums into massive BTC reserves, is spreading worldwide. Last week, a new wave of companies began or significantly expanded their Bitcoin holdings, with many others joining in.
K Wave Media, a Korean company, has announced plans for major transactions, aiming to hold 88 Bitcoins:
"We believe this financial structure positions us to execute one of the most ambitious corporate Bitcoin accumulation strategies in the world. Our goal is clear: expand our holdings to 10,000 Bitcoins as soon as possible while maintaining strong investor consensus and complete transparency," CEO Ted Kim stated.
Given that Bitcoin price reached All-Time-High yesterday, K Wave is attempting to build a large reserve. The company declares they are collaborating with Anson Funds, an investment firm that will provide them with 500 million USD in funding.
At least 80% of this money will be used to purchase BTC, but K Wave could invest up to 1 billion USD.
Another company enhancing its Bitcoin Treasury strategy is DDC Enterprise, which had previously purchased BTC. Today, they announced a partnership with Animoca Brands to invest 100 million USD in DDC's reserve.
Animoca, a company pursuing diverse revenue strategies, will help manage DDC's investments, gaining market experience and a portion of profits.
Moreover, while Bitcoin is certainly the preferred asset, some companies are building reserves of other altcoins. Solana, for instance, has its own MicroStrategy-like whale, and data from Lookonchain reveals seven large ETH transactions last night. Some are from companies, with a total Ethereum amount reaching 358 million USD:
Of course, some of these transactions are from anonymous whales and may not be related to companies. One transaction was even part of a money laundering chain from yesterday's GMX hack. However, this trend shows that corporate Treasury transactions are not necessarily Bitcoin-related.
Nevertheless, Bitcoin Treasury plans are raising concerns about an imminent bubble.
Is this massive BTC investment sustainable? Some cryptocurrency-holding companies are outperforming the assets they manage, which might indicate an extreme level of speculation.
