More and more companies are choosing Bitcoin as their main asset for corporate reserves

On December 30, 2024, the education technology company, Genius Group Ltd, purchased $10 million worth of Bitcoin. The company aims to convert 90% of its funds into BTC. Recently, more and more companies around the world have chosen Bitcoin as the main asset in their corporate treasury.

Genius Group Bitcoin Reserve

While many countries They work Based on strategic Bitcoin reserve proposals, private and public companies are purchasing Bitcoins to build their corporate treasuries. More than a million Bitcoins are held in the vaults of private and public companies.

Genius Group Limited is an AI-driven learning and accelerator company headquartered in Singapore with over 5.4 million students worldwide. One of the rare characteristics of this company is its Bitcoin-first approach, which suggests that most of the company’s funds (90%) should be in Bitcoin.

On December 30, 2024, Genius Collection Announce It has acquired $10 million worth of Bitcoin. Thus, the company increased its Bitcoin holdings by 50%. The total amount of cryptocurrency acquired by Genius Group was 319.4 Bitcoin.

Following this move, Genius Group’s stock price saw a decline 11% rise, And this is not the only gain after converting the company’s reserves into Bitcoin. The Bitcoin-first strategy was announced on November 12, 2024. Bitcoin’s return for Q4 2024 is estimated at 1,649%. According to Genius Group CEO Roger Hamilton, the company will explore various options to maximize shareholder value.

Genius Group has turned to a Bitcoin treasury KPI as the company’s management believes that the Bitcoin standard will be beneficial to both the company and its shareholders. The Bitcoin Treasury KPI indicates whether a company’s market capitalization is higher or lower than the value of its Bitcoin reserves.

The Genius Group provided a comment to crypto.news explaining the company’s commitment to Bitcoin:

“We believe that a new type of future-focused public listed company built on AI and blockchain technology can bridge the gap for investors between the existing, centralized and regulated world of the NYSE, Nasdaq and other stock markets with the future promise of decentralized, exponential economies. What is unique to the Genius Group is that Education for the Future is an opportunity to achieve a layer of added value through education, as we prepare the next generation for a world in which the ways of earning money and learning are dramatically different.

The Genius management team believes that with the advent of Artificial General Intelligence (AGI) and the constant need for sound money, Bitcoin was an obvious choice of treasury asset to preserve and grow shareholder value over the long term. Being a registered company in Singapore, with 0% capital gains tax, gives us an added advantage in our Bitcoin-first strategy.

Asked how Genius Group timed the market for Bitcoin, the company responded:

“As fundamental believers in Bitcoin’s long-term potential, we do not try to time the market, but rather buy and hold with the intention of never selling.”

Bitcoin reserves for companies as a new trend

The acquisition of hundreds of bitcoins has attracted a lot of attention to Genius Group Ltd., although the company is far from a pioneer in doing so. As the cryptocurrency market begins to grow in November 2024 and pro-crypto narratives intensify in all types of media, many public and private companies are starting to switch to the Bitcoin Standard. They create bitcoin reserves for companies and begin to value bitcoins on par with traditional assets like the US dollar. One of the latest examples is Thumzup media. It is saidstrives to keep 90% of its liquid assets in Bitcoin and spent $1 million on Bitcoin on January 9, 2025.

As of January 6, 2024, Koenjiku Names of 32 public companies Bitcoin contract. The Bitcoin Treasuries tool features over 70 public companies that hold bitcoins. Tesla was among the first companies whose decision to set aside a Bitcoin reserve stirred up the market, boosting Bitcoin’s price in 2021. Since then, other companies have become more prominent in making headlines associated with massive Bitcoin acquisitions.

MicroStrategy is undoubtedly the number one company associated with the continued growth of corporate holdings of BTC and the massive amounts of bitcoins purchased. At approximately 450,000 BTC, it holds more than 2.1% of the total Bitcoin supply. Marathon Digital Holdings takes second place with over 26 thousand BTC. Other leaders include Galaxy Digital Holdings, Tesla Inc., Riot Platforms Inc., and many more. according to Bitcoin Treasuriesmore than 20 public companies own more than 1,000 Bitcoin each. The same source points to eight private companies that have more than 1,000 Bitcoins in corporate vaults. The leader is Block.one with 164 thousand BTC. Tether Holdings Limited follows with 83,000 BTC.

This trend is only visible because it contrasts with the prevailing corporate approach to cryptocurrencies, where most companies still prefer to stay away from Bitcoin or treat it with caution. For example, Microsoft shareholders were deciding whether the company should add Bitcoin to its balance sheets. Majority shareholders Vote against Proposal. The reason for rejecting the Bitcoin proposal was that the company was already performing well and investing in volatile assets, although profitable, might make Microsoft’s investment potential less predictable for shareholders. MicroStrategy’s Michael Saylor referred to Microsoft’s refusal to add Bitcoin to the company’s balance sheet as “capital destruction.”

There are many ways to explain why companies need these bitcoins. First, Bitcoin reserves act as a hedge against inflation. If BlackRock It is recommended Allocate up to 2% of your funds in Bitcoin, why not follow this advice? In terms of publicity, Bitcoin reserves can amplify the company’s progressive image and attract more attention in the cryptocurrency community. Finally, in a bull market, acquiring Bitcoin may be viewed as an effort to quickly boost a company’s balance sheet without having to produce, promote, or improve anything. However, the viability of investing so much of the company’s assets in Bitcoin could be in question as some experts warn of a market reversal soon.