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As the price of bitcoin rallies above $100,000, a host of companies are harnessing public markets via SPACs and reverse mergers to purchase digital assets en masse.
So called crypto treasury companies, public firms that focus on acquiring digital assets like bitcoin, have become one of the most talked-about trends of 2025, and for good reason. These firms are raising money, merging with public shells and buying up tokens at breakneck speed turning themselves into vehicles for institutional and retail investors to gain exposure to digital assets without the hassle of operating in the murky netherworld of hackable crypto exchanges and digital wallets.
The bitcoin treasury strategy pioneered by billionaire Michael Saylor’s MicroStrategy, which now calls itself Strategy, remains dominant: more than 70 public companies around the world currently hold over $67 billion worth of the asset. But the sheer velocity of capital deployment for crypto treasuries at large is jaw-dropping. Since April, more than 30 public companies have announced plans to adopt similar strategies, targeting about $19 billion in capital raises, according to Elliot Chun of Architect Partners, a Palo Alto-based financial advisory firm.
Just last week, the president’s Trump Media and Technology Group, which operates the Truth Social social-media platform, announced it had secured $2.3 billion through a sale of its equity and convertible notes, marking one of the largest bitcoin treasury deals to date. And on Monday, billionaire Justin Sun, a major backer of the Trump family’s crypto ventures, revealed that his digital asset platform, Tron, will go public in the U.S. via a reverse merger with Nasdaq-listed SRM Entertainment. As part of the deal, Tron will inject up to $210 million worth of its namesake token into the new company.
The stocks of many of these unproven companies are soaring. Janover, a commercial property financing platform, has surged more than 5,300% since April, when it adopted a solana-focused strategy and rebranded as DeFi Development Corporation. Japan’s hotel chain-turned-hodler Metaplanet is up 472% year-to-date. Strategy, Michael Saylor’s bitcoin-brimming firm, whose stock has gained 30% year-to-date, has soared 3,000% over the past five years.
Most of these crypto Johnny-come-latelies are simply capitalizing on the investor hype and enthusiasm around crypto, now that the U.S. government appears to be in full embrace of the industry. Leverage is another driver of these stocks. Nearly all of these firms are adding crypto to their balance sheets after issuing convertible debt or equity similarly to the funding employed by Strategy. Leverage amplifies returns, so when bitcoin and other crypto prices are rising these stocks can produce bigger gains. Another factor is volatility, which hedge funds and options traders crave. These publicly-traded entities, stuffed with leveraged crypto, tend to gyrate wildly with the underlying asset and thus have high implied volatility. They are a speculative trader’s dream.
“There are now a variety of investors that want to access [crypto] risk in a regulated fashion that fits within their investment mandate, and what these treasury companies are permitting is essentially creating lots of different vehicles to do that,” says Jeff Park, head of alpha strategies at crypto asset manager Bitwise.
But it’s not just leverage and volatility that set these companies apart. Operating in public markets, rather than the murky world of crypto trading, has allowed them to scale rapidly. By listing on major exchanges, they gain access to deep institutional capital markets, allowing them to raise billions almost overnight and place outsized bets that private firms simply can’t match. The ability to borrow cheaply and easily is a big part of the new wave of crypto treasury firms’ allure, notes Park.
Since traditional IPOs are costly, often require teams of lawyers and can take years, these Strategy-wannabes are instead tapping Special Purpose Acquisition Companies, known as SPACs, or finding existing public shells—micro-cap companies ripe for what is known as a reverse-merger.
Take Twenty One Capital, backed by Tether and SoftBank, which is merging with the blank check affiliate of the Lutnick family’s Cantor Fitzgerald at a $3.6 billion enterprise value. Less than two months ago the SPAC, Cantor Equity Partners, traded for $10.80. Today it trades at $35 despite the fact that the merger has not yet been completed. Or consider former presidential candidate Vivek Ramaswamy’s Strive Asset Management, which in May announced a reverse merger with Asset Entities, an $86 million provider of content delivery solutions that had otherwise been languishing, to buy bitcoin. Since the announcement, Asset Entities’ stock went from around $0.60 to as high as $13, and now trades for $5.42.
“The price action that is currently being seen is before these transactions have been consummated, and that is a little bit unnerving,” adds Park who believes the good times will continue for these corporate early adopters. “If you believe there’s a wall of money coming to buy bitcoin and everyone’s waiting on the sidelines to get their deals approved, well you better hope that you can do it first,” he says.
Park believes that much of the excitement around these new corporate crypto treasuries stems from anticipated returns: “What we haven’t seen yet is an aggressive exploration of the left side of the balance sheet, which is actually generating worthwhile yield and return through the bitcoin that is being held in these operating companies.”
Additionally, the crypto these companies are buying is effectively being taken off the market. This creates scarcity, which can magnify price swings and accelerate tokens’ rise, potentially making these treasury strategies even more impactful from a return standpoint.
Architect Partners’ Chun is wary of the rapid balance sheet build up among the new digital asset buyers. “This is financial engineering at its best,” he warns. “Straight equity, PIPEs, convertible notes, ATMs—it’s an MBA course on its own in every different structure for public equity one can think of.”
Video game retailer GameStop is using more than $3 billion in convertible debt to finance its new bitcoin buying strategy. How will Game Stop, which has already spent $500 million on bitcoin, generate a return on its new treasury asset? No details are available yet, but as long as its stock gets carried higher with the prices of crypto, it may not matter to management of the one-time meme stock favorite.
“You have a whole lot of hype. You have a lot of people who aren’t crypto-native, who are new to this and don’t understand the intricacies of operating with this asset class,” says Chun. “Being in crypto this long, you’re always looking for the next thing that will take us down to our next winter. This definitely has the makings of something like that.”
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