The Bitcoin acquisition strategy worth $472.5 million is leading a global trend, as companies worldwide are building BTC reserves. Corporations are shifting towards it, integrating it, and exploring altcoins as this trend matures.
However, some experts are concerned about a bubble, as this purchase could cause a supply shock. If Bitcoin's price drops, forced liquidation could spread across these companies with devastating consequences.
Companies Continue Buying Bitcoin
Bitcoin reached a new All-Time-High today, and corporate reserve accumulation is accelerating. MicroStrategy (previously Strategy), the first pioneer of this plan, has led the movement this year with large purchases.
Today, Michael Saylor announced a new commitment to buying $472.5 million:
Naturally, other companies are following MicroStrategy's steps. Matador Technologies, a company that has shifted to become a BTC-priority company, is bringing Bitcoin reserves to Canada.
Today, the company announced selling new shares worth 900 million CAD ($657 million) over the next 25 months. Matador will use most of this money to buy more Bitcoin.
This doesn't necessarily mean Matador is a larger buyer; they plan to do this over several months, while MicroStrategy has already completed its purchase. However, companies worldwide are doing what they can to build Bitcoin reserves.
For example, Genius Group, which bought BTC last week and the week before, today announced that they spent $3.2 million on this asset again.
Bitcoin is not the only token for corporate reserve purchases, as Solana is also making a significant mark. Click Holdings, a human resources and senior care company based in Hong Kong, is exploring both assets for its $100 million treasury.
Jeffrey Chan, CEO of Click, says this purchase could lead to cryptocurrency integration in other ways:
"We see immense potential in cryptocurrency to optimize operations, attract tech-savvy investors, and open new revenue streams. By building a strong Bitcoin and Solana reserve and integrating cryptocurrency payments, we're not just adapting to the future; we're leading it, delivering added value to shareholders through innovation and growth," Chan affirmed.
However, all these Bitcoin reserves are making some people skeptical about whether this is a reasonable investment. Corporate spending could bring a supply shock to BTC, which could affect its valuation.
Many companies are selling shares to continue buying at high prices, but this brings liquidation risks.
If a leading company like MicroStrategy liquidates its BTC, failure could spread through the ecosystem. Such a scenario would be a disaster; equivalent to major cryptocurrency exchange collapses in the past.
In summary, corporate Bitcoin reserves might just be a trend. However, without market intervention, it seems this trend is accelerating, not slowing down.
