Global companies, especially those on the brink of financial instability, are actively buying Bitcoin in an attempt to boost their stock market value. Experts warn that such tactics could provoke a new bubble in the cryptocurrency market and lead to a price collapse.
This is reported by Finway
Bitcoin Accumulation Strategy: Cases and Consequences
In just the past few months, 154 public companies worldwide have received or plan to receive over $98 billion to purchase crypto assets. This figure is several times higher than in previous years, when such volumes were only attracted by a handful of corporations. Among the new players are representatives from the biotechnology sector, the hotel industry, electric vehicle manufacturers, vape producers, and even gold mining companies.
A striking example is the French company Sequans Communications. After an unsuccessful contract that negatively impacted investor confidence, CEO Georges Karam decided to invest in Bitcoin to “unlock the company’s value.” To do this, Sequans raised $384 million in the debt and equity markets and invested it in cryptocurrency acquisition. As a result, the company’s shares rose by 160%, and Sequans Communications’ Bitcoin portfolio reached 2,317 BTC, valued at approximately $270 million.
“Today, I am 100% convinced that Bitcoin is here to stay,” said Karam.
Many companies have drawn inspiration from Michael Saylor – a Bitcoin evangelist whose company, Strategy, has been regularly purchasing the first cryptocurrency for billions of dollars since 2020. Recently, Strategy made one of the largest purchases in its history – for $2.5 billion. Over five years, the company’s shares have increased by more than 3000%.
Experts’ Warnings and Systemic Risks
The frenzied demand for the “treasury” crypto strategy is explained by record Bitcoin prices and high stock index levels, as well as legislative restrictions on direct investments in cryptocurrencies in some countries. For instance, in the UK and Japan, cryptocurrency ETFs are banned, so investors use shares of companies that own Bitcoin as an alternative investment tool for crypto assets.
This approach carries significant risks. Analysts emphasize that excessive enthusiasm for Bitcoin could turn into a disaster for the market. Off The Chain Capital CEO Brian Estes compared the current situation to the internet bubble of the late 1990s, while Natixis CIB expert Eric Benoit noted that a potential Bitcoin collapse would be a systemic shock for the entire financial ecosystem.
“This will end badly; it will end in a bubble. Just as quickly as they rose, they can fall,” says Estes.
The market capitalization of some companies significantly exceeds the value of their cryptocurrency reserves. For example, American KULR Technology has a market cap of $198 million with an operational loss of $9.4 million for the first quarter of 2025, but owns 1,021 BTC, which at the time of writing is valued at over $120 million.
Moreover, some companies have already begun using Bitcoin as collateral for new financial services, including lending and mortgages. For instance, in May, Cantor Fitzgerald provided loans secured by Bitcoin to the FalconX and Maple Finance projects, and in July, Block Earner began issuing mortgage loans in Australia backed by this cryptocurrency. However, such practices have already led to high-profile bankruptcies, as seen in 2022 with the FTX exchange.
Despite all warnings, investors are eager to profit amid the market’s growth. However, even industry participants acknowledge that such a scenario could end dramatically. It was previously reported that the Hong Kong company DDC Enterprise Limited plans to acquire 10,000 BTC by the end of 2025.