The Rise of Crypto Treasury

This report examines the conceptual framework, global adoption trends, and stock performance of companies embracing crypto treasuries.

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Executive Summary

• The adoption of cryptocurrencies, particularly Bitcoin (BTC), as treasury reserve assets by companies has emerged as a transformative financial strategy since 2020. This report examines the conceptual framework, global adoption trends, and stock performance of companies embracing crypto treasuries.
• Driven by goals like inflation hedging, portfolio diversification, and brand differentiation, this trend has gained momentum despite regulatory and market volatility challenges. 
• Globally, over 90 public companies now hold Bitcoin on their balance sheets, with the United States leading in both corporate and government adoption.
• The stock performance of companies with crypto reserves shows a mixed picture. The crypto treasury reserve strategy’s impact on stock prices varies, influenced by both crypto market dynamics and broader business factors.
• Bitcoin’s volatility, regulatory uncertainties, and need for secure custody solutions pose challenges. Despite these, the growing acceptance of Bitcoin in traditional finance (TradFi), as evidenced by endorsements from financial institutions and governments, suggests a maturing market. BTC’s outstanding performance in the past 10 years highlights the potential for significant long-term financial performance during high inflation periods.
• Crypto.com has partnered with Trump Media & Technology Group (TMTG) and Yorkville America to launch TMTG-branded exchange-traded funds (ETFs). By positioning itself as the technology and custody backbone for high-profile ETF launches, Crypto.com is directly targeting the growing demand from state and sovereign funds for secure, regulated, and scalable crypto exposure.

1.  Introduction

Cryptocurrencies, particularly Bitcoin, are increasingly being adopted by companies as part of their treasury reserves to protect against inflation and diversify their financial holdings. Bitcoin’s fixed supply of 21 million coins and verifiable scarcity make it an attractive store of value, especially during economic uncertainty. This strategy gained traction around 2020, with companies like MicroStrategy (recently renamed as Strategy) adopting Bitcoin as a primary reserve asset, initially buying 38,250 BTC for US$425 million. 

Regulatory developments, such as the US Securities and Exchange Commission (SEC)’s approval of a spot Bitcoin ETF in January 2024 and the pro-crypto policies from US President Donald Trump’s administration, have supported this trend by enhancing investor confidence.

Public companies allocate cryptocurrencies to their treasuries primarily for:

• Inflation Hedging: Bitcoin’s fixed supply (21 million BTC) positions it as a deflationary alternative to fiat currencies vulnerable to central bank policies.
• Portfolio Diversification: Crypto assets exhibit low correlation with traditional equities and bonds, offering risk mitigation during market downturns.
• Balance Sheet Innovation: Unlike gold, Bitcoin is GAAP-recognised as a tangible asset, enabling straightforward balance sheet reporting.
• Strategic Branding: Companies like Strategy and Tesla leverage crypto holdings to signal innovation and attract investor attention.

However, critics highlight Bitcoin’s volatility, regulatory uncertainty, and the unproven long-term viability of crypto reserves. Sceptics argue that if gold is not widely held by corporations, Bitcoin’s utility as a reserve asset remains speculative.

2. Crypto Reserve Companies

In this section, we explore the notable companies that have already adopted crypto (mainly BTC) as a reserve treasury and examine the performance of stocks for the public companies. Additionally, there were a reported 26 private organisations that own BTC as their treasury reserve. Overall, companies from the US dominated BTC reserves (around two-thirds of the BTC held by organisations were from the US), followed by the British Virgin Islands (25%).

2.1 Public Companies

Over 90 public companies globally now hold Bitcoin on their balance sheets, with the United States leading in both corporate and government adoption. 

Below is a table of the top 20 public companies that have adopted crypto reserves, as of April 2025.

2.2 Performance Review

The stock performances of companies with crypto reserves show a mixed picture. Companies like Strategy (formerly MicroStrategy), which have heavily invested in Bitcoin, have seen strong gains, reflecting the benefits of this strategy. However, companies like Tesla, while involved in crypto, are more influenced by their own core business performance and market conditions. The volatility of the cryptocurrency market and macroeconomic factors continue to impact stock performance, with no uniform trend across all adopters.

Strategy Inc. (NASDAQ:MSTR), a business intelligence company, is a pioneer in adopting Bitcoin as a treasury reserve, holding 553,555 BTC as of 30 April. Its stock 1-year return was 257%, significantly outperforming the S&P 500’s 6.02% and NASDAQ 100’s 12%, respectively, over the same period. This strong performance is largely attributed to its aggressive Bitcoin acquisition strategy, which has resonated with investors bullish on crypto.

FRMO Corporation, through Horizon Kinetics, LLC, operates as an investment advisory and independent research company in the United States. It has pivoted strongly towards digital assets, holding $13.7 million, primarily Bitcoin. The company is expanding into cryptocurrency mining and digital asset management, partnering with firms like Wynland and Consensus Mining. As of April 2025, FRMO’s stock has delivered a year-to-date return of -16%, underperforming many benchmarks, while the monthly return was around 3%, higher than the market indices.

BlackRock has not directly added Bitcoin to its corporate treasury, but it has become a major institutional gateway to Bitcoin through its iShares Bitcoin Trust (IBIT) ETF, which holds substantial Bitcoin on behalf of investors. The firm is also pioneering blockchain integration, launching a digital share class for its Treasury Trust Fund, and exploring tokenised asset offerings.

Tesla, Inc. (NASDAQ:TSLA), holds 11,509 BTC as of 30 April, and has faced significant challenges in 2025. Its stock price as of 30 April 2025 was $282.16, down 30% since the end of 2024. Tesla’s 36% decline in the first quarter marked its worst quarterly performance since 2022. This drop is attributed to declining EV sales, competition from Chinese automakers like BYD, and geopolitical factors, including CEO Elon Musk’s political activities. Despite its Bitcoin holdings, Tesla’s stock performance is more closely tied to its core business, with a forward price-to-earnings ratio significantly higher than peers, suggesting overvaluation concerns. The company’s market cap has lost over $460 billion in Q1 2025, highlighting the impact of broader market dynamics.

3. Crypto.com’s Go-to-Market for Crypto Treasury

The latest development of Crypto.com’s go-to-market strategy for crypto treasury reserves centres on its newly announced partnership with Trump Media & Technology Group (TMTG) and Yorkville America to power a series of TMTG-branded ETFs, including those with baskets of cryptocurrencies like CRO and other digital assets.

This move comes as sovereign wealth funds and state-backed entities (such as those in Abu Dhabi, Norway, and the US state of Wisconsin) are increasingly allocating capital to digital assets, often via regulated vehicles like spot Bitcoin ETFs. The new ETF structure, powered by Crypto.com, is designed to meet the compliance, custody, and transparency requirements of these sophisticated investors.

Crypto.com will provide backend technology, custody, and cryptocurrency supply for these ETFs, leveraging its custody solutions to ensure institutional-grade security and compliance. The development also positions Crypto.com as a strong participant in offering direct access for sovereign and institutional investors.

Once approved by the SEC, these ETFs will be available to Crypto.com’s global user base (140 million-plus). By positioning itself as the technology and custody backbone for high-profile ETF launches, Crypto.com is directly targeting the growing demand from state and sovereign funds for secure, regulated, and scalable exposure to diversified digital assets.

4. Conclusion

The rise of crypto treasury reserves marks a significant evolution in corporate financial strategy, driven by Bitcoin’s potential as a store of value and hedge against inflation. Over 90 public companies across multiple countries, led by the US, have adopted this approach, with Strategy exemplifying success through strong stock performance. However, the crypto treasury reserve strategy’s impact on stock prices varies, influenced by both crypto market dynamics and broader business factors. Additionally, Bitcoin’s volatility, regulatory uncertainties, and the need for secure custody solutions pose challenges. 

Despite these, the growing acceptance of Bitcoin in TradFi, as evidenced by endorsements from financial institutions and governments, suggests a maturing market. A thought experiment from Fidelity Digital Assets illustrates the potential: a $100 million (1%) allocation to Bitcoin in June 2019 at $10,000/BTC would have grown to approximately $700 million by June 2024, highlighting the potential for significant long-term financial performance during high inflation periods.

As regulatory frameworks evolve and crypto adoption grows, this trend is likely to continue, offering both opportunities and challenges for companies navigating the digital asset landscape.

Read the full report: The Rise of Crypto Treasury

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Authors

Crypto.com Research and Insights team

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