Traditional Finance Stocks' Bitcoin Exposure Proves It's Not a Panacea
Unleashing TradFi's Bitcoin Adventure:
The thrilling journey of TradFi (Traditional Finance) and Bitcoin is far from over, with a staggering 34 public corporations now boasting a combined Bitcoin stash worth a whopping $72 billion — that's 699,387 BTC! And guess who's the undisputed kingpin in this crypto kingdom? None other than MicroStrategy with an astounding 555,450 BTC!
While some hail Bitcoin treasury strategies as bullish game-changers, the stats paint a more intricate picture. Adding Bitcoin to a balance sheet might not automatically spark stock booms. Metaplanet, for instance, has amassed a stock surge over 3,000% since its BTC plunge, but there are numerous others with more modest gains—or even losses!
Metaplanet Inc., Asia's Bitcoin Behemoth:
Metaplanet, a Japanese public company that breezed through the hotel ops scene, has swiftly morphed into one of Asia's most bold Bitcoin enthusiasts. It's just one example of how TradFi players are reconfiguring their models to fit the digital asset agenda.
Since launching its Bitcoin Income Generation strategy in late 2024, this snazzy firm has shifted gears towards crypto, with a whopping 88% of its Q1 FY2025 revenue, amounting to ¥770 million ($5.2 million), chalked up from Bitcoin option premium harvesting. Metaplanet dropped its anchor in Bitcoin territory back in April 2024 with 5,555 BTC, which today is worth a jaw-dropping $576.8 million!
Metaplanet's ambitious Bitcoin accumulation strategy— targeting 10,000 BTC by year-end—has sparked increased investor curiosity, fueling an impressive 500% increase in its shareholder base within a year. Despite occasional setbacks due to Bitcoin price fluctuations, Metaplanet reported a fantastic ¥13.5 billion in unrealized BTC gains as of May 12, pointing towards a positive long-term Bitcoin journey.
NEXON, Gaming Giant Turned BTC Bloke:
Nexon, a major Japanese gaming company known for global hits like Dungeon&Fighter and MapleStory, jumped on the Bitcoin bandwagon back in April 2021. Its sizable 1,717 BTC allocation—around $178.3 million—may seem impressive, but performance-wise, it missed the mark. Nexon's stock has plummeted nearly 29% since the BTC purchase, proving that crypto exposure doesn't always translate into equity gains for TradFi firms.
Nexon's value still remains more tied to gaming franchise successes rather than crypto boosts. In its Q1 2025 earnings report, it posted a 5% revenue increase year-over-year, hitting ¥113.9 billion, and a substantial 43% surge in operating income to ¥41.6 billion—thanks to its ace gaming franchises and lower costs.
Semler Scientific (SMLR), The Notable Bitcoin Adopter:
Semler Scientific took its first Bitcoin bite in May 2024 and now hoards 1,273 BTC worth around $132.2 million. Since embracing Bitcoin as its primary treasury reserve asset, Semler's stock has spiked over 55%. Though smaller in scale compared to leading crypto treasury holders, its aggressive accumulation and performance have earned it a spot as a significant player in the Bitcoin corporate adoption saga.
In its Q1 2025 earnings call, Semler Scientific reported mixed performance. Its revenue plunged 44% year-over-year to $8.8 million due to healthcare segment declines, while operating losses widened to $31.1 million amid $39.9 million in expenses. The net loss of $64.7 million was largely attributed to an unrealized loss of $41.8 million from Bitcoin price fluctuations. Yet, Semler remained adamant about expanding its BTC holdings, with plans for $500 million ATM program and a $100 million convertible note.
Tesla (TSLA), Musk's Crypto Crusaders:
Tesla, spearheaded by Elon Musk, has sported a tumultuous and headline-grabbing romance with Bitcoin since adding it to its balance sheet in January 2021. As a long-time crypto enthusiast, Musk has swayed market sentiment through both Tesla's actions and his personal Dogecoin and BTC commentary. Tesla's stock has risen 34% since that initial BTC buy, though the trip has been anything but smooth—peaking near $480 in late 2024 before crashing below $107 in early 2023.
Musk's Bitcoin advocacy and Tesla's early crypto exposure helped establish the company as a trailblazer for institutional crypto adoption. Its journey encapsulates the rollercoaster ride and intricacies of crypto exposure within large TradFi firms, as BTC is up 212% in the same period.
However, in its latest Q1 2025 earnings, Tesla delivered underwhelming results. Automotive revenue plummeted 20% year-over-year to $14 billion, dragging total revenue down 9% to $19.34 billion—well below Wall Street projections. Net income cratered 71% to $409 million, and the operating margin collapsed to 2.1%, weighed down by production upgrades, price cuts, and political woes—including rising tariffs.
Amid dwindling deliveries and increasing competition, Tesla highlighted advancements in energy storage and AI infrastructure. Yet, Tesla's share price has sunk 41% year-to-date, and investor doubts linger as the company prepares for a potential robotaxi launch in June.
Block Inc. (Formerly Square), Jack Dorsey's Digital Gold Rush:
Block Inc., Dorsey's co-founded child, added Bitcoin to its balance sheet in October 2022 and currently stashes 8,485 BTC, valued at approximately $881 million. Known for its early embrace of Bitcoin and Cash App's crypto integration, Block has entered the fold as one of the most prominent corporate Bitcoin holders.
Since its inaugural BTC purchase, Block's stock has risen a mere 3.8%, signaling a complicated odyssey; it peaked above $100 in December 2024 but plummeted to around $38.5 in November 2023 amid broader tech sector volatility and macroeconomic pressures on the TradFi sector.
Block's Q1 2025 earnings revealed a mixed picture, missing both revenue and profit expectations. Despite a 9% rise in gross profit to $2.29 billion, guidance for the rest of the year was cut due to macro uncertainty, including the impact of new tariffs. Cash App's gross profit soared 10% to $1.38 billion, driven by the launch of Afterpay's buy-now-pay-later feature and the expansion of its lending program under FDIC approval. However, gross payment volume climbed, and international exposure now accounts for 18% of the total volume.
Though Block posted its most profitable quarter to date, shares have tumbled 31% year-to-date, and investors remain skeptical as the company gears up to deliver its first Bitcoin mining chips later this year.
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- Despite Metaplanet's Bitcoin accumulation strategy, occasional setbacks due to Bitcoin price fluctuations are inevitable.
- Semler Scientific's Bitcoin holdings, smaller in scale compared to leading crypto treasury holders, have resulted in a 55% increase in stock price.
- Metaplanet's Q1 FY2025 revenue comes primarily from Bitcoin option premium harvesting, making up 88% of the total.
- Traditional Finance (TradFi) firms like Nexon, while adopting Bitcoin, have experienced varied performance; Nexon's BTC purchase did not produce the desired equity gains.
- Tesla's initial Bitcoin buy in January 2021 led to a 34% rise in stock price, although the journey has been tumultuous with numerous setbacks.
- Block Inc., a prominent corporate Bitcoin holder, has seen its stock rise only 3.8% since the inaugural BTC purchase, signaling a complex journey in the crypto space.
