Bitcoin has evolved from a niche digital currency to a mainstream financial asset, with major corporations and even governments incorporating it into their financial strategies. The trend of companies holding Bitcoin as part of their treasury reserves has gained traction due to its potential as a hedge against inflation, currency depreciation, and a store of value.
In February 2025, South African-listed investment holding company, AltVest, made history by becoming the first public African company to add Bitcoin to its treasury reserves. Through its subsidiary, AltVest Bitcoin Strategies, the company acquired 1.00464 BTC for R1.81 million ($98,491) as part of its long-term treasury management strategy. This move underscores a growing institutional acceptance of Bitcoin as a legitimate asset class.
MILESTONE | Altvest Becomes First Publicly-Listed Firm in Africa to Add #Bitcoin to Treasury Reserves
Altvest says it ‘currently views Bitcoin as the only digital asset’ meeting its criteria.https://t.co/vx6CAuOwLM @CapitalAltvest pic.twitter.com/jydjwqeMF1
— BitKE (@BitcoinKE) February 23, 2025
Meanwhile, in the United States, the world’s largest economy, Bitcoin is being accumulated as part of a strategic national reserve. However, not all financial leaders agree on its role as a reserve asset. South Africa’s Central Bank Governor has expressed skepticism, arguing that Bitcoin holds no more intrinsic value as a reserve asset than commodities like beef or apples.
According to Reuters, the crypto industry invested over $119M to advance legislation favorable to the sectorhttps://t.co/SiP2xQYmWs @SAReserveBank pic.twitter.com/wg0btW5TGO
— BitKE (@BitcoinKE) January 22, 2025
Despite differing opinions, the increasing number of companies integrating Bitcoin into their financial structures suggests a significant shift in corporate treasury management.
This case study examines how Strategy Inc., hitherto a business intelligence software and cloud services, leveraged Bitcoin to redefine corporate treasury management, providing a model for other corporations seeking to integrate Bitcoin into their reserves.
The Bitcoin Strategy
In 2013, Strategy CEO, Michael Saylor, was skeptical about Bitcoin’s long-term viability. However, by 2020, he had changed his stance and saw Bitcoin as a superior store of value compared to traditional fiat currencies. Believing that Bitcoin’s long-term appreciation and low maintenance costs made it an ideal corporate reserve asset, he initiated an aggressive accumulation strategy for the company.
Strategy Inc. began purchasing Bitcoin in August 2020 using:
- Excess cash reserves
- Debt offerings, and
- Convertible notes
to finance its acquisitions.
To be particular, the firm essentially turned itself into a Bitcoin-holding entity by raising cash – through equity offerings (selling shares) and debt instruments (bonds/loans) – and then using that money to buy Bitcoin.
MILESTONE |
@MicroStrategy‘s total #Bitcoin holdings have now crossed 500,000, according to a new SEC filing. @saylor
Strategy is the world’s largest corporate #Bitcoin holder as of this writing. pic.twitter.com/X9v32gfWAI
— BitKE (@BitcoinKE) March 24, 2025
Timeline of Strategy Inc.’s Bitcoin Purchases & Funding Sources
2020
- August – 21,454 BTC for $250M (Cash reserves)
- September – 16,796 BTC for $175M (Cash reserves)
- December – 29,646 BTC for $650M (Convertible senior notes)
2021
- February – 19,452 BTC for $1.026B ($1.05B convertible senior notes)
- April – 253 BTC for $15M (Cash reserves)
- June – 13,005 BTC for $489M (At-the-market (ATM) equity offering)
- December – 1,914 BTC for $94M (Cash reserves)
2022
- February – 660 BTC for $25M (Cash reserves)
- April – 4,167 BTC for $190.5M (Bitcoin-backed loan)
- June – 480 BTC for $10M (Cash reserves)
- September – 301 BTC for $6M (Cash reserves)
2023
- March – 6,455 BTC for $150M (Cash reserves)
- April – 1,045 BTC for $29.3M (Cash reserves)
- June – 12,333 BTC for $347M (Cash reserves)
- September – 5,445 BTC (Cash reserves, amount undisclosed)
- November – 5,262 BTC for $561M (Cash reserves)
2024
- Oct 31 – Nov 10 – 27,200 BTC for $2.03B (ATM equity offering)
- December – 15,350 BTC for $1.5B (Cash reserves)
- December 22 – 5,262 BTC for $561M (Cash reserves)
2025
-
- February – 1,070 BTC (Cash reserves, amount undisclosed)
Since cash in dollars is steadily losing purchasing power due to inflation – evidenced by a U.S. inflation rate averaging 2-3% annually, with spikes over 7% in 2021-2022 – MicroStrategy (now Strategy) has strategically converted its cash into Bitcoin, a scarce asset they believe will appreciate over time.
Their bet is that Bitcoin, with its fixed supply of 21 million coins, serves as a better store of value than cash, which is continuously printed by central banks. So far, this strategy has been validated, as Bitcoin has significantly outperformed the U.S. dollar and traditional assets over the long term, reinforcing their thesis despite short-term volatility.
By February 2025, the company held 478,740 BTC, valued at over $46 billion, representing more than 2% of Bitcoin’s total supply.
Bitcoin Holdings
- Bitcoin Holdings: 478,740 BTC
- Estimated Value: Over $46 billion
- Percentage of Total Bitcoin Supply: More than 2%
Following the announcement of MicroStrategy’s Bitcoin-focused strategy, investors began purchasing $MSTR shares as a way to gain exposure to Bitcoin’s price movements without directly owning the cryptocurrency.
The company’s strategy has seen its shares soar more than six-fold in 2024, taking its market value to almost $94 billion. This came as Bitcoin’s price surged past $107,000, influenced by President-elect Donald Trump’s victory in the 2024 Presidential Election.
Its traditional software business has been underwhelming, with low revenue growth and profitability. However, investors are valuing the company based on its Bitcoin holdings rather than its software operations, effectively treating it as a corporate Bitcoin ETF.
In December 2024, it was added to the NASDAQ-100 Index, which comprises the 100 largest non-financial companies listed on the NASDAQ.
During its Q1 2024 earnings call, Saylor stated that adopting a Bitcoin strategy allowed the company to achieve performance levels 10 to 30 times higher than its competitors in the business intelligence industry.
He argued that Bitcoin was not just a cryptocurrency but a digital property competing with gold, real estate, equities, and bonds in wealth preservation and capital markets.
“We are in the early stages of rapid institutional adoption of digital property in the form of Bitcoin,” Saylor said during the company’s Q1 2024 earnings call.
In February 2025, the company changed its brand name from MicroStrategy to Strategy, reflecting its transformation from a traditional business intelligence firm to a major Bitcoin investment entity.
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