In the dynamic world of cryptocurrency, Bitcoin (BTC), the first and accepted digital currency, has become part of the modern finance system. Over the past decade, its influence has grown from an uncertain investment to a legal asset held by businesses and governments. Most developed companies are buying BTC. In this article, we discussed the importance of its value.
Bitcoin is a decentralized cryptocurrency used for payment methods, business, and investment purposes. It is important to note that it is not dependent on the central bank, and investors use it without paying taxes. Bitcoin is the first cryptocurrency to be adopted as a legal asset in different countries, such as El Salvador, Russia, China, and the United States.
Why Do Companies & Countries Buying Bitcoin?
The main reason companies choose Bitcoin is to protect against inflation. Many companies view Bitcoin as a store of value like gold, silver, bonds, etc. Unfortunately, fiat currency is printed in unlimited quantities by the central bank. In this case, the value of cash is low, and inflation is higher than money. Meanwhile, Bitcoin has a fixed supply of 21 million coins, while its value tends to increase when demand grows. So, things become cheaper when measured in Bitcoin, unlike with regular money.
The increase in Bitcoin’s Price between 2023 and 2024 has been unbelievable, starting in 2023 at around $26K per BTC. The digital currency rose throughout 2024 despite worldwide disease, war between Russia and Ukraine, and global economic chaos since its last rise. Bitcoin finished 2024 as one of the best-performing assets in the world. It closed the year near its all-time high (ATH) of $108K per Bitcoin. The major fact was the price’s bullish momentum when the US government approved the BTC ETF in 2024.
Which Companies Hold Bitcoin?
MicroStrategy is an american company that creates software to help businesses analyze data and make better decisions. It’s also well-known for investing heavily in Bitcoin as part of its strategy. It holds 444,262 bitcoins as per data. MicroStrategy states the average buy price as USD 58,219 per BTC with a total cost of USD 23.41 billion. MicroStrategy bought 21,454 BTC the first time in 2020, and the last time bought this month for 15,400 BTC.
Tesla (the world’s richest man, ELON MUSK) is a company that makes electric cars, batteries, and clean energy products. It’s known for its innovative technology, self-driving features, and efforts to reduce carbon emissions. Tesla bought Bitcoins for the first time in 2021. According to the data, it owns 9,720 bitcoins. It owned 42,902 Bitcoins, but in July 2022, it announced selling 75% of its holdings, reducing its total to 10,725. This news caused Bitcoin’s price to drop by about 1.7%.
According to BitcoinTreasuries data, Square, now Block, Inc., led by Jack Dorsey, has acquired 8,027 BTC. Marathon Digital Holdings is a leading Bitcoin mining company, holding around 12,000 BTC. It primarily acquires BTC through its mining operations. Likewise, Coinbase is a major cryptocurrency exchange, holding 4,500 BTC on its balance sheet. It also manages billions in BTC assets for its customers.
Galaxy Digital Holdings is a financial services and investment management firm that holds around 16,400 BTC, while Hut 8 Mining, a Canadian Bitcoin mining company that has around 9,000 BTC
Which Countries Hold Bitcoin & Why?
El Salvador made headlines in 2021 by becoming the first country to adopt Bitcoin as legal tender. The government has actively purchased BTC, viewing it as a way to boost financial inclusion and reduce reliance on remittance fees. It owns 5,942 bitcoins, according to the recent data.
Ukraine: This country is involved in a war with Russia, and its economy has been destroyed for one year. In light of economic challenges, Ukraine has welcomed Bitcoin donations to support its economy and military efforts. The country has actively explored ways to integrate cryptocurrencies into its financial system. According to data, Ukraine owns 46,351 bitcoins.
Russia has shown interest in using Bitcoin to bypass international sanctions. According to Reuters, Russia’s finance minister said on Wednesday that Russian legislation has changed to allow companies to use BTC and other digital currencies in international payments and take steps to legalize the mining of cryptocurrencies, including Bitcoin.
The United States plays a significant role in the world of Bitcoin. The government is actively working on regulations to manage its use and ensure user security. It holds 207,189 bitcoins. President Donald Trump changed his SEC chairman and selected Paul Atkins, a new pro-crypto-friendly chairman.
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