Why are large public companies buying Bitcoin?

[HOPE25]

Global economic instability, inflation, dollar depreciation and uncertainty have forced companies to look for alternative assets like Bitcoin as a future financial asset. In this context, Bitcoin has been considered an emerging asset or digital gold. Just as gold was seen as a safe haven during economic crises; currently, large companies are considering Bitcoin as a safe haven. Various public companies are storing Bitcoin on their balance sheets so that they can strengthen their future financial position. When the price of Bitcoin increases, the value of the companies increases. On the other hand, when costs increase, the price falls. Then it becomes very risky. Through Bitcoin, the company is said to be more future-focused. Because by investing in Bitcoin, the company believes in modern future technology or has innovative power. When Tesla bought Bitcoin, their social media coverage and band value increased many times. Bitcoin is no longer just a digital coin; it is considered by people as a sure-fire way to secure the future. Companies that are currently buying BTC -
1.MicroStrategy,
2.Tesla,
3.Block Inc. (formerly Square)
4.Coinbase,
5.Marathon Digital Holdings
6.Hut 8 Mining
- Which companies do you think will buy the Bitcoin in the future?

[Razmirraz]

The interest of some of the big companies mentioned above to buy and hold it will strengthen Bitcoin credibility as a top asset class and encourage other companies to explore Bitcoin. The company has already anticipated what will happen if inflation rates continue to rise, they use Bitcoin as a hedge against inflation, this method is almost similar to storing gold in the past to protect the value of company assets.

In addition, the large amount of Bitcoin held by these companies allows them to earn high profits as Bitcoin's level increasingly outperforms most other traditional assets, thus widening the opportunity for significant capital bubbles. Bitcoin ownership by some of these large companies will also position them at the forefront of financial and technological innovation, so it is no wonder that these companies continue to accumulate Bitcoin on a regular basis because the positive impact generated by this most popular asset is so large.

[Futurexxx]

The interest of some of the big companies mentioned above to buy and hold it will strengthen Bitcoin credibility as a top asset class and encourage other companies to explore Bitcoin. The company has already anticipated what will happen if inflation rates continue to rise, they use Bitcoin as a hedge against inflation, this method is almost similar to storing gold in the past to protect the value of company assets.

In addition, the large amount of Bitcoin held by these companies allows them to earn high profits as Bitcoin's level increasingly outperforms most other traditional assets, thus widening the opportunity for significant capital bubbles.

I think you have said it all here, these companies sees opportunities that most people that aren't into investment wouldn't see, they know that Bitcoin is no where close to it peak price now, that's why they are trying their possible best to acquire a huge stash of Bitcoin now that it's very cheap, because currently this current market price might look very expensive but in like 10 to 20 years time from now, this current price will actually be a steal, that's why they are seizing the opportunity now that it's still on the table.
Ok let's look at those investors that bought at $69k 2 or 3 years back, then we were thinking that they mistakenly bought at the top, but as of today 2 or 3 years after if am not mistaken, that price looks like a big bargain price, so this is what these companies has already envision of what is to come, that's why they are seizing the opportunity now.

[Davidvictorson]

Well let me answer the question on while large companies are buying Bitcoin. I think that large companies and buying bitcoin because of control. In the future they want to have as large number as possible of Bitcoin so that they can have some control over it period the same thing applies to the government of countries who are also pro Bitcoin. But let it be known that it is not being bought because they care about the other people it is basically because of what is in it for them.

[DeathAngel]

Big companies buy Bitcoin because they think it’ll go up in value over time. It’s digital gold, limited & not controlled by any government. Some also use it to protect against inflation or to look modern & forward thinking. It can also help boost their stock price if Bitcoin does well.

[Danica22]

Why do we invest in bitcoin? I think they are just like us, they invest in bitcoin for profit, nothing more.

If we can freely invest in bitcoin, why are we surprised when institutions and public companies invest in bitcoin when the ultimate goal of these companies is also for profit?

Soon, not only small and medium sized companies like MicroStrategy, Tesla, we will see real giants like Nvidia, Microsoft, and Apple join this bitcoin holding race. They are businessmen, entrepreneurs and their goal is to make as much money as possible, so they will not miss the opportunity to make a big profit.

[Fortify]

Well it should be obvious that all of these, except for maybe Tesla, are absolutely in the fin tech and even more specifically crypto related industry, what about that is surprising to you? If you had reeled off companies like Coca Cola, Walmart or Boeing then it would have actually been interesting. In the grand scheme of things, again except for Tesla and maybe Coinbase, these are all rather small companies compared to the biggest in the market. If you look at MicroStrategy the majority of their holdings and worth are directly tied to bitcoin, which makes the risk associated with them rather concentrated if it started drifting downwards. Tesla is the major exception here but they are not adding to their holdings and have probably sold off a bunch from the peak, I am not sure how much genuine faith Elon has in Bitcoin or it was just a way to indulge his ego by getting it to spike a little when he still had a huge following.

[Porfirii]

I'm not so sure about the reasons why public companies are buying Bitcoin. Some of you think that it is about control, others about profit (why not both?), a third reason could be to add certain significance to their brand (innovative, vanguardist, disruptive, whatever), but I think that the real reasons may differ between them, and that we won't know them anytime soon.

Instead of thinking about their reasons, it's better to think about the reasons why you'd buy Bitcoin, think about different scenarios and conduct a risk assessment. These large companies should have their backs well covered, but they won't help you if things don't happen according to your plan, so the reason why they're buying, that only they know, is not such an important issue for the individual hodler.

[Promocodeudo]

Why do we invest in bitcoin? I think they are just like us, they invest in bitcoin for profit, nothing more.

If we can freely invest in bitcoin, why are we surprised when institutions and public companies invest in bitcoin when the ultimate goal of these companies is also for profit?

Soon, not only small and medium sized companies like MicroStrategy, Tesla, we will see real giants like Nvidia, Microsoft, and Apple join this bitcoin holding race. They are businessmen, entrepreneurs and their goal is to make as much money as possible, so they will not miss the opportunity to make a big profit.

Your knowledge and understanding is very much fantastic, I think you are very right in what you have said, the aforementioned institutions are strictly in profit chase but i think they understand the fact that this profit is not an immediate one here so that's why the buy in large sum, let me use microstrategy as an example although they may be using customers money to buy more Bitcoin stash and keep hodling but the truth is that they have faith in Bitcoin and what it can become in the future but the whole truth is that a far anything called investment is concerned, the whole reason for it is by any individual or institutions is profit at the end and nothing more, so I concur with what you said.

[YOSHIE]

Why are large public companies buying Bitcoin?

The company you mentioned they have examined and reviewed Bitcoin from year to year, they did not find the way of money vs. money to generate fast profits on a large scale, They have an innumerable economy if they are stored if they do not produce anything, so they find the best bitcoin solution for them in storing long-term assets, it has been learned and proven.

Example: Their tesla company first bought Bitcoin or in investing US $ 1.5 billion was carried out in the early 2021, they had doubts initially, but when Halving occurred an economic impact on their company was clear, For this reason, it continues to be followed by a microstrategy company and so on until now and now Bitcoin has become the center of investment attention for the largest company as you mentioned.

[WillyAp]

Don't put all eggs in one basket.
The way it is.

[harapan]

Don't put all eggs in one basket.
The way it is.

I so much love this phrase, honestly for one to generate and accumulate so much there's need not to hold on to a particular thing fo long instead to diversify one's asset they need not to yo put their eggs in one basket. That's a good reason this large companies are doing well in buying and holding Bitcoin cause they are sure of a profitable returns in the long run.

[crwth]

The companies purchasing bitcoin are really thinking about the future because the US dollar is inflationary. They want to hedge their assets, preserve their holdings, and possibly multiply their value.

I do hope that a lot more companies will join this line and see the importance of what Bitcoin brings to the company.

[hyudien]

It is not wrong if these big companies consider bitcoin as a safe haven, bitcoin has proven itself worthy of overcoming inflation but one thing is for sure why they are currently interested in bitcoin because the potential profit that will be obtained from bitcoin in the future is quite high, bitcoin is currently trading at a price of 100k and this is not the peak for the asset. Simply put where there is their profit and we will all come to it, human nature right?

[coin-investor]

We are in a different era now. What we have now is the battle of whales and big companies in a race to accumulate as many Bitcoins as possible. It's not even big companies; even countries are racing to accumulate Bitcoin because they have seen the benefits.
One of the countries that benefited is the small country of Bhutan, which is one of the top 10 countries with large Bitcoin reserves.
Bitcoin is the future; whoever holds the most will have a good standing in the crypto industry, and maximize their profit, which will help their economy.

[mindrust]

Iran’s parliament decided to block the strait of hormuz recently. It looks like things will go much worse soon. That means companies will look for a safe haven and we know they won’t be buying gold. They don’t like USD neither because it is another loser currency. Btc is their only option left. Which companies will prefer btc next? Who knows… Apple, microsoft, amazon, google, nvidia, amd, intel, pepsico, exxonmobil… All of them are good candidates. It doesn’t matter who’ll be the next. What really matters is they’ll be coming over. Either they’ll adapt or they’ll disappear and some other company that can adapt will fill their spot. I wish we weren’t seeing all that missiles, bombings and shiet but here we are.

[Ruttoshi]

Big companies are diversifying their funds into bitcoin to safeguard their funds from depreciation due to inflation, since bitcoin is a store of value in the long term. Profits is not an exemption because they have confidence that the price of bitcoin will increase overtime as inflation increases too.

If it is to control the price of bitcoin, they can't because the largest bitcoin in circulation is in the hands of individual hodlers. Those company just started investing and there are some whales that have invested in bitcoin long time ago at a very cheaper rate.

[criptoevangelista]

There's a theory going around here in Brazil that the companies buying Bitcoin are the new "altcoins",  in other words, the explosive price increases that used to be seen in random small coins will now be seen in the stock prices of the companies that choose to hold Bitcoin as part of their strategic reserves.

[Republikcoin.com]

- Which companies do you think will buy the token in the future?

What token are you asking about OP? While in the discussion you explained about companies that have bought Bitcoin not those that have bought tokens. Besides, there are many types of tokens so your question is a bit confusing to me.

Don't put all eggs in one basket.
The way it is.

I so much love this phrase, honestly for one to generate and accumulate so much there's need not to hold on to a particular thing fo long instead to diversify one's asset they need not to yo put their eggs in one basket. That's a good reason this large companies are doing well in buying and holding Bitcoin cause they are sure of a profitable returns in the long run.

OP has explained about several companies that have bought Bitcoin and are still holding Bitcoin as their future investment so he also asked about other companies and not just individuals. This means that the companies that OP has mentioned are companies that are able to make money through several things so that their income is continuously used to buy Bitcoin which they can also buy others without telling many people. So the phrase not to put all your eggs in one basket is only suitable to be said for an individual not for companies because companies always do more things to be able to get maximum results.

[uneng]

Bitcoin has been a profitable investment and asset since its launchment, so big companies want to make sure to not miss this opportunity, like every other investors around. The difference is that they own large sums of money to invest, unlike us, so their impact over the market is much more intense.

The next "companies" to buy Bitcoin must be governments worldwide inspired by El Salvador. Governments in general are facing economical difficulties. Different economical plans and measures have been executed, but none of them work on long run. Inflation is high, while quality of products in general is decreasing substantially. Trust in dollar has been also decreasing, so alternative concepts of store of value must be adopted. Bitcoin could work for that purpose for a percentage of total public funds.