Unchecked Bitcoin Investment Strategy Draws Criticism from Financial Analyst
In a significant shift in the financial landscape, publicly traded companies from the U.K., Canada, China, Africa, and other regions are increasingly investing directly in Bitcoin, moving away from indirect exposure through Bitcoin ETFs. This trend, which has accelerated over the past year, has resulted in an impressive 245,510 Bitcoins being acquired by these companies in the first half of 2025 - more than double the inflows into ETFs over the same period [1].
Key drivers behind this trend include the belief that Bitcoin serves as a hedge against inflation and a potential global, apolitical reserve asset. Companies like MicroStrategy, led by Michael Saylor, have been at the forefront of this movement, aggressively buying and holding Bitcoin, influencing other corporations to follow suit [1][3]. As of now, around 135 public companies hold Bitcoin as part of their treasury strategy, with expectations that even larger corporations and tech giants may join this trend by the end of 2025 [3].
However, this trend has not been without its critics. Financial analysts have raised several concerns about this shift, chief among them being the volatility and risk associated with Bitcoin. Given its highly volatile nature, Bitcoin could introduce significant risk to corporate balance sheets, potentially impacting company valuations and shareholder wealth, particularly if Bitcoin prices experience sharp downturns [4].
In addition to volatility, there are concerns about regulatory uncertainty and potential future restrictions or compliance costs related to holding Bitcoin. Bitcoin's classification and accounting treatment can also complicate financial reporting, potentially affecting companies’ earnings reports and investor perceptions [4]. Critics argue that some companies might be motivated more by market hype or to attract investors rather than sound financial strategy, which could lead to speculative bubbles [4].
Furthermore, some companies are raising capital through debt or equity issuance specifically to buy Bitcoin, which may increase financial leverage and risk if Bitcoin’s price declines [4]. Nate Geraci, president of The ETF Store, has urged caution for public companies rushing to invest in Bitcoin, warning against companies that exist solely to hold Bitcoin, rather than incorporating it into their strategy [4].
Despite these concerns, the trend of corporate Bitcoin investments continues to gain momentum. Sweden's Hilbert Group has raised 200 million SEK for Bitcoin investment, while the Addentax Group from China has announced a nonbinding deal worth $1.3 billion to acquire up to 12,000 BTC. Canadian fintech company Mogo has committed $50 million to crypto exposure, and the French Blockchain Group has purchased 116 BTC today [2].
It is important to note that not every Bitcoin-filled balance sheet tells the same story, and some may be quite misleading. Geraci warns against companies that prioritise Bitcoin investments over sound financial strategy, potentially leading to speculative bubbles and increased risk for investors [4].
In conclusion, while the trend of public companies investing heavily in Bitcoin reflects growing institutional acceptance and a shift toward viewing it as a treasury reserve asset, analysts caution about the inherent risks related to volatility, regulatory dynamics, and corporate financial health that come with such significant Bitcoin exposure [1][2][3][4]. As this trend continues to evolve, it will be crucial for companies to carefully consider these risks and make informed decisions about their Bitcoin investments.
[1] Cointelegraph, "Public companies buy 245,510 Bitcoins in H1 2025, doubling ETF inflows," 15 June 2025,
- Companies like MicroStrategy, guided by Michael Saylor, have been instrumental in the growing trend of corporations directly investing in Bitcoin, using it as a hedge against inflation and potential global reserve asset in their treasury strategy.
- The blockchain technology behind Bitcoin has captured the attention of many public companies, with some, such as Sweden's Hilbert Group and China's Addentax Group, raising substantial funds for Bitcoin investment, reflecting an escalating interest in the crypto market.
- As the investing landscape in finance continues to evolve, technology-oriented companies might soon join the trend, holding Bitcoin as a part of their financial strategy, influencing the overall crypto market and raising questions about risk management, volatility, and regulatory uncertainty.
