Corporate Bitcoin Holdings Hit All-Time High in Q1… Will the Trend Continue?

During the first quarter of 2025, corporate Bitcoin additions increased. Industry giants like Tether and Metaplanet achieved record allocations compared to the previous quarter.

However, recent U.S. trade policy announcements cast a shadow on Bitcoin accumulation. BeInCrypto interviewed Coinshares analyst Max Shannon to explore the sustainability of this trend and potential further corporate adoption.

Which Companies Are Leading Bitcoin Holdings?

As the mainstream adoption path of Bitcoin accelerates, more companies are holding BTC for the first time or allocating assets to corporate finances in 2025.

The first quarter of 2025 was marked major industry players making their largest Bitcoin allocations. Tether, the world's largest stablecoin issuer, progressively purchased 8888 BTC from January, increasing its total BTC balance to over 100,000. In the previous quarter, they had only only added 1,035.

Metaplanet also increased increased its allocation efforts. The Japanese listed company first began purchasing Bitcoin in May 2024. By December, Metaplanet had accumulated 1,762 BTC, increasing to 4,046 by March 2025.

Other notable companies did not break previous allocation records but significantly expanded their Bitcoin supply.

Expanding Ranks, from MicroStrategy to GameStop

Former MicroStrategy, now Strategy, maintains its aggressive accumulation style. By this year, end the , BTC.

Meanwhile, financial services company Fold Holdings publicly announced purchasing 475 BTC in early March, increasing its total accumulation to 1,485.

Companies outside Web3 are now also joining the Bitcoin purchase trend.

Two weeks ago, video game and electronics retailer GameStop announced updating its investment policy, adding Bitcoin as a financial reserve asset. While the an immediate BTC purchase,, are speculations that they will allocate some of their $4.8 billion cash balance to cryptocurrency.

Corporate Bitcoin Adoption Strong<>is becoming increasingly attractive to investors seeking inflation hedging assets. BTC's is limited impacted by the type of depreciation affecting f.

"Companies understand that currency inflation is the core reason for the the decline in their balance sheet purchasing power," Shannon told BeInCrypto.

According to him, this may have led Metetherplanet to accumulate a record amount of Bitcoin in in the first three months of 2025. Metaplahasnet has already announced plans to collect 10,000 BTC by year-end.

"Japanese companies face continuous yen depreciation and use Bitcoin as a solid asset hedge. Also, in markets with negative real,TC excellent long-term risk-adjusted returns. No returns, but providing long-term appreciation and inflation resistance. When inflation rate (paid price or currency inflation) is higher than nominal interest rate," he said.

As concerns about U.S. inflation surge rise, Bitcoin is becoming more attractive among U.S. investors. Accounting changes for digital currencies have also made them a more attractive portfolio portfolio addition.

Attraction of New New Accounting Standards

Beyond its value as an inflation hedge, Bitcoin's corporate investment appeal has further increased with recent U.S. accounting standard modifications.

In January, the Financial announced Accountingancy Standards Board (FASB) announced new new rules allowing companies holding BTC to report unrealized digital asset revenue. Instead of waiting to sell assets, companies can now report value increases as income on financial statements.

"Exchangeing depreciating fiat currency for for digital hard assets like Bitcoin makes Bitcoin an attractive financial asset. Bitcoin is highly liquid and can benefit from new FASB accounting treatment as a 'cash equivalent', which can also improve the income statement." – Shannon added.

Despite its inflation stability potential, Bitcoin's inherent volatility can attract investors willing to take greater risks and companies seeking to diversify their holdings.

Bitcoin Volatility: Strategic Advantage?

Beta measures a stock's volatility compared to the overall market. A higher beta indicates greater stock volatility.

According to Shannon, adding highly volatile assets like Bitcoin to the balance sheet increases a stock's beta. When Bitcoin's price rises, the entire investor portfolio can gain significant profits.

"This can enhance investor returns, and has actually been proven. Stock volatility also increases, improving convertible bond interest rates, and thus affecting the's structure and capital costs. Volatility also provides opportunities for for options and and derivatives traders, increasing stock trading it a more liquid asset told." – Shannon told BeInCrypto.

However, investors may face greater potential losses during Bitcoin bear markets. For this reason, BTC may be more attractive to to companies seeking to diversify their holdings or large corporations capable of weathering the storm.

Bitcoin, Specific Business Cases

The volatility and increased trading activity associated with Bitcoin adoption can provide strategic advantages, especially for companies experiencing performance issues or operating in highly competitive sectors.

"Companies with poor performance in competitive markets or mature enterprises can benefit from assets that increase volatility and trading volume, and raise the stock's beta." – Shannon told BeInCrypto.

GameStop is a prime example. The retailer's Q4 2024 earnings report showed a significant decrease in sales.

Despite the concerning financial report, GameStop's stock price rose by 12% after signaling that it would add BTC as a financial reserve asset. Limited cryptocurrency exposure is expected to strengthen the company's financial position in 2025.

Meanwhile, Tether's robustness could further enhance Bitcoin's ability to withstand significant price volatility.

Utilizing Bitcoin Revenue... Tether's Financial Strategy

As the largest stablecoin issuer, Tether generates substantial revenue from trading fees and extensive reserve management. This financial strength can serve as a buffer to absorb potential losses from Bitcoin price declines.

Demonstrating its financial capabilities, Tether allocates 15% of its quarterly net profits to Bitcoin.

"This is similar to dollar-cost averaging by allocating 15% of net realized operating profits to Bitcoin. Since it's post-tax, it allows the use of surplus cash (retained earnings) in higher-growth assets, making it a relatively conservative approach. In this case, the company is well-capitalized with net capital of $7 billion, which is prudent risk management. However, there could still be black swan events where cash might be more necessary than Bitcoin." – Shannon explained.

Despite Bitcoin's inherent unpredictability, the long-term reduction in volatility over recent years has supported the logic of including even a small amount in a well-diversified portfolio.

"Bitcoin has improved the risk-adjusted returns of a 60/40 portfolio since 2017. While volatility risk remains that might deter companies from absorbing it, volatility has historically shown a downward trend that could continue." – Shannon added.

While acknowledging Bitcoin's advantages, Shannon finds it increasingly difficult to predict whether corporate asset accumulation will maintain the rapid pace seen earlier this year.

Market Confusion... Will Corporate Appetite Diminish?

Although only in its second week, April has proven to be a challenging month for financial markets. The cryptocurrency sector has experienced the most pronounced impact.

Trump's recent "Liberation Day" celebration pushed stocks into a downward trend as investors prepare for upcoming uncertainties. In the two days following Trump's tariff announcement, over $1 billion in long and short positions were liquidated due to weekend volatility.

Amid this new wave of uncertainty, Shannon expects companies to prioritize more urgent issues over Bitcoin accumulation.

"The long-term trend points to additional balance sheet accumulation, but quarterly predictions are challenging. Considering the current market volatility and the impact of tariffs on margins, I expect operational issues to take precedence over Bitcoin accumulation." – He said.

Even after this initial wave of uncertainty subsides, macroeconomic conditions will significantly determine future corporate Bitcoin purchases. Bitcoin must maintain its competitiveness to drive these purchases.

"When Bitcoin prices rise, FOMO and the performance of Bitcoin-backed companies will improve. This requires certainty in trade policy (or a reversal through trade with partners), lower 10-year yields, and a stock market correction or recovery." – Shannon added.

Currently, external headwinds may have a more significant impact than Bitcoin accumulation strategies.

Uncertain Future

Corporate Bitcoin accumulation reached a new peak during Q1 2025. However, recent political and economic developments could hinder future progress.

Until the future of US trade policy and international responses become clearer, the cryptocurrency market is likely to experience high volatility. This situation could encourage traditional investors and companies to prefer conservative strategies and redirect resources to other priorities.

The outcome can only be known with time.