## Massive Bitcoin Accumulation: Corporate Treasury Reserve Strategies Are Changing Global Finance

In recent years, the trend of large corporations holding Bitcoin on their balance sheets has become less surprising. However, a recent purchase of an additional 1,229 BTC worth $108.88 million completed at the end of 2024 clearly indicates one thing: companies are not just speculating on cryptocurrencies but are building long-term, fundamentals-based financial strategies. This transaction brings the total Bitcoin holdings of Strategy to an astonishing figure: 672,497 BTC, equivalent to approximately $50.44 billion as of December.

### Why do businesses choose Bitcoin as a reserve asset?

First, it’s important to understand **what cost basis means** in the context of corporate investing. Cost basis is not a new concept but refers to the **average input cost (dollar-cost averaging)** strategy—a method of periodic purchases on a fixed schedule rather than trying to predict market highs and lows. Strategy has been applying this approach since 2020, accumulating Bitcoin systematically rather than fighting price volatility.

The reasons companies bet on Bitcoin are quite pragmatic:

- **Inflation hedge:** Bitcoin is viewed as digital gold, a store of value unaffected by expansive monetary policies
- **Portfolio diversification:** Adding digital assets to reduce correlation with traditional stocks and bonds
- **Realized gains:** This year, the company’s Bitcoin portfolio achieved a 23.2% profit, outperforming many traditional assets

### Dominance in the corporate Bitcoin holding community

Strategy currently holds a very clear leading position among publicly listed companies holding Bitcoin:

| Company | BTC Quantity | Year Started |
|---------|--------------|--------------|
| Strategy | 672,497 | 2020 |
| MicroStrategy | ~190,000 | 2020 |
| Tesla | ~10,500 | 2021 |
| Block, Inc. | ~8,027 | 2020 |

The 672,497 BTC figure for Strategy is not just a number on the balance sheet—it represents about 3.2% of the maximum total supply of Bitcoin (21 million coins). Such a concentrated scale from a single entity can significantly impact market liquidity and institutional investor perception.

### Cumulative effect: From individual transactions to market trend

A single transaction of $108.9 million is easily absorbed by deep liquidity on major exchanges, but when similar transactions repeat, the cumulative impact becomes evident. This is the **supply shock** effect—when large organizations continuously buy in, the available Bitcoin for retail investors decreases, creating long-term upward price pressure.

Experts from Fidelity Digital Assets and ARK Invest have published research supporting Bitcoin’s uncorrelated nature in investment portfolios. This means that when traditional assets decline, Bitcoin can rise, protecting investors’ assets.

### Regulatory progress: Legal barriers are easing

An often-overlooked factor is the improvement in accounting regulations for digital assets. Previously, companies faced difficulties reporting Bitcoin on their balance sheets due to a lack of clear accounting guidance. Now, standard-setting bodies have issued detailed guidelines, allowing businesses to report more transparently. This has lowered barriers for other companies considering similar moves.

Strategy employs a custody solution combining cold storage and institutional-grade custodians, ensuring maximum asset safety and increasing shareholder confidence.

### Next trend: Will the institutional acceptance wave arrive soon?

Strategy’s actions could serve as a catalyst for the next wave of institutional adoption. Other companies in the S&P 500 are watching and may see this as a proven model. Key implications for the future include:

- **Normalizing Bitcoin:** Digital assets will become a natural part of retirement and investment fund portfolios
- **Clear regulatory dialogue:** Major investors like Strategy will have incentives to push for crypto policies that are appropriate and transparent
- **Financial service innovation:** Corporate demand will drive new products such as insured custody, lending, and derivatives

### Signs of the future of finance

This moment symbolizes the convergence of traditional and digital finance. Strategy’s 23.2% profit since the beginning of the year, although historical data, has provided other CFOs with a practical basis to consider similar strategies. As the digital asset ecosystem continues to mature, Strategy’s disciplined approach—using the **average input cost (dollar-cost averaging)** method to accumulate Bitcoin—may become a case study for corporate finance in the digital age.

In summary, this $108.9 million transaction is not just a large number on paper. It clearly demonstrates a new reality: Bitcoin is no longer solely a retail investment asset but a legitimate component of corporate treasury management strategies.