Corporate Bitcoin: CZ Urges Risk Focus as GameStop, Others Add to Holdings

• CZ suggests that companies should balance risk and ROI on a spectrum of 0 to 100
• GameStop leads the list of the newly emerged Bitcoin treasuries in May with 4170 BTC
• The list consists of companies from all around the world

CZ, the former Binance CEO, shared a few thoughts about companies holding Bitcoin treasuries, which seems to be a growing trend in the corporate world.

His post emphasizes risk management, suggesting companies balance risk and ROI on a spectrum of 0 to 100, a perspective likely shaped by his own experience with Binance’s $4 billion settlement in 2023 for anti-money laundering failures.

GameStop, Zap Solutions Join Bitcoin Treasury Trend

CZ’s musings was originally a response to a post that listed all the newly emerged Bitcoin treasuries in May. The list consists of dozens of companies, with GameStop (GME) leading with 4170 BTC. Other companies mentioned are Zap Solutions Inc. with 1500 BTC, followed by DDC Enterprise starting with 100 BTC in May.

The top three companies are from the US, but the list also has businesses from Europe, South America and Asia, with all having less than 100 BTC.

Established Players Like Strategy Continue Bitcoin Accumulation

This just shows that the trend of corporate Bitcoin adoption is gaining momentum. For instance, MicroStrategy (doing business as Strategy) acquired 1070 BTC in January, then continued to accumulate in the coming months (705 Bitcoin at the end of May), bringing its total holdings to 580,955 BTC.

Other companies like CleanSpark and Thumzup Media also continue to increase their Bitcoin holdings.

Analysts See Trend Continuing as Reputational Risks Fall

Some analysts predict that this movement won’t stop anytime soon. In his article in January, Bitwise CIO Matt Hougan predicted that hundreds of companies will adopt Bitcoin as a treasury asset over the next 12 to 18 months, driven by reduced reputational risks and favorable accounting changes. 

So far, his forecast seems to be on point, as a lot of corporations started to hold on to Bitcoin these last few months.

GameStop made headlines 

Near the end of May, GameStop made front page news, announcing its first major foray into cryptocurrency, purchasing 4710 BTC valued at approximately $513 million.

The decision followed a March update to GameStop’s corporate investment policy, allowing for investments in Bitcoin and US dollar-pegged stablecoins. To fund this initiative, the company raised $1.3 billion through a convertible bond sale, which was later increased to $1.5 billion due to investor demand. 

Still, the market’s reaction was mixed as GameStop’s stock initially surged but then fell 10.9% on the day of the announcement.

While the company’s bitcoin acquisition marks a very big shift in its financial strategy, the long-term impact on its stock performance remains to be seen.