From Bitcoin to Ethereum: The Rise of Crypto Treasury Strategies

An emerging trend involving crypto treasury strategies sees companies raising cash to buy Bitcoin and other cryptocurrencies—pioneered by MicroStrategy’s success and prompting imitators worldwide.

Companies Embrace Crypto Treasury Approaches

A New Trend in Corporate Finance

MicroStrategy Leads the Charge with Bitcoin Investment

The landscape of corporate finance is shifting, and one of the most intriguing trends is the growing adoption of crypto treasury strategies by firms around the globe. This essentially means companies are specifically raising cash to invest in cryptocurrencies, most notably Bitcoin and Ethereum. MicroStrategy is often cited as a pioneer in this field, having taken bold steps that have sparked a wave of similar initiatives among businesses looking to boost their balance sheets.

The Ripple Effect of MicroStrategy’s Success

MicroStrategy took the plunge back in August 2020, marking the beginning of its significant investment in Bitcoin. As of mid-July 2025, the firm now boasts roughly 601,550 bitcoins, equating to more than $70 billion in current market value. Notably, it paid an average of $71,268 for each coin, culminating in a hefty investment of $42.87 billion. With the price of Bitcoin hovering around the $120,000 mark, this sizable investment represents a gain of about 68%. Additionally, the stock performance of MicroStrategy has been even more impressive, boasting a remarkable increase of 46% since January 2025, which surpasses Bitcoin’s much lower 26% growth over the same timeframe. Since starting this journey, MicroStrategy’s shares have skyrocketed over 3,000%.

Rising Interest in Ethereum and Other Cryptos

As MicroStrategy’s results continue to capture attention, it has inspired others to follow suit. Notably, Japanese firm Metaplanet illustrates this trend. They assert that holding Bitcoin through stock ownership provides better tax benefits under Japanese law. Since April 2024, Metaplanet has managed to acquire over 16,000 bitcoins, driving its stock price up by an astonishing 4,000%. However, it’s not all success stories. GameStop’s recent ventures into cryptocurrency have been rocky at best. After securing $2.25 billion, purportedly to invest in Bitcoin, the stock’s pricing has seen considerable volatility. This highlights the necessity for firms to remain committed and focused on their strategies to enjoy strong returns.

Wider Implications of Crypto Asset Inclusion

While Bitcoin boldly leads the charge, Ethereum is now starting to grab its share of attention within corporate treasuries. For instance, SharpLink Gaming, in a June 2025 deal, raised $425 million and proudly announced plans to buy up Ether, Ethereum’s native token. They even appointed Joseph Lubin, co-founder of Ethereum, as chairman. Following this news, SBET shares witnessed a meteoric rise from $3 to nearly $79, although they later settled at about $29, marking still a staggering 900% increase from pre-announcement levels. Meanwhile, BitMine Immersion Technologies also shifted a significant portion of its treasury to Ether, with its stock racing from $3 to an impressive $135 before closing at $42.35 by mid-July. The momentum for Ethereum in corporate portfolios is unmistakable.

Understanding the Risks of Crypto Treasury Strategies

However, the trend isn’t limited to Bitcoin and Ethereum alone. Companies like SRM Entertainment, rebranding as Tron Inc., have made heavy investments in TRX. Others are branching out into various other cryptocurrencies, like BNB, Hyperliquid, and Litecoin. One notable yet chaotic episode involved YHC Corporation, whose plans to pivot to a crypto treasury strategy made headlines but fell apart due to internal disputes, illustrating the speculative nature of this emerging sector. As more corporations dive into this world, a degree of scepticism among investors is also rising. An anonymous fund manager remarked that many companies appear to be jumping onto crypto bandwagons without any solid groundwork, suggesting a bubble could be forming.

The Ongoing Evolution of Corporate Finance Strategies

With all the excitement surrounding crypto treasury strategies, it’s essential to understand the inherent risks. Critics warn that many of these strategies rely on a precarious cycle: raising funds, buying cryptocurrencies, boosting share prices, and then raising even more cash. Jim Chanos, a well-known short-seller, has voiced significant concerns about MicroStrategy’s model, stating it trades at a valuation well above its actual Bitcoin holding value. He cautions that if Bitcoin’s price were to decline or borrowing costs increase, the entire mechanism could collapse. He likens this current trend in crypto treasury strategies to the infamous SPAC bubble of 2021, where companies grew largely due to speculative hype before inevitably collapsing.

Key Takeaways from Crypto Treasury Strategies

In summary, the implementation of crypto treasury strategies is altering the way businesses manage their cash flow. While those who have jumped in early have seen astounding gains, the risks from market volatility and excessive borrowing are on the rise. Whether this trend signals a fundamental shift in financial management or is merely another speculative bubble is unclear, but one thing’s certain—the crypto treasury strategies are certainly rewriting the rules of the corporate world.

In conclusion, the corporate world is undergoing a significant change with the rising use of crypto treasury strategies. Companies have seen substantial returns, but risk management around volatility remains critical. Whether this results in a sustainable market transformation or just another speculative craze is yet to be determined, emphasizing the importance of prudent management.