Over the last year, several publicly traded companies have purchased Bitcoin using cash from their treasuries. The goal has primarily been to preserve wealth and store value using Bitcoin instead of holding dollars that can depreciate over time due to inflation. With Bitcoin reaching fresh all-time highs, these companies seem to have made a solid investment.
The larger publicly traded companies that hold Bitcoin include Tesla (TSLA), MicroStrategy (MSTR), Square Inc. (SQ) and, as of April 14th, Coinbase (COIN). Combined, the companies hold 152,093 Bitcoin valued at over $9 billion.
In January of 2021, Tesla filed a form 10-K with the SEC stating that it had updated its policy to "provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity."
The filing continued saying that "we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future."
Tesla's $1.5 billion purchase gave the company 48,000 Bitcoin. Today, the value of its holdings is over $2.5 billion, meaning Tesla's investment has seen a nearly 70% increase.
Tesla's investment has paid off, but others have seen impressive returns as well. MicroStrategy, who first purchased Bitcoin in early August of 2020, has acquired 91,579 through several purchases. The company has spent over $2.2 billion on Bitcoin with an average purchase price of around $23,000. Today, the company's holding is worth almost $5.8 billion, giving them a return of nearly 160%.
MicroStrategy also announced on April 12th that it would begin paying its board members in Bitcoin, furthering its commitment to the asset as a greater store of value.
Square, another company that has purchased Bitcoin with treasury cash, has experienced an increase of over 131% on its investment. The company initially purchased 4,709 Bitcoin in October of 2020. It later announced it would add 3,318 Bitcoin to its holdings giving the company 8,027 Bitcoin.
Coinbase, which is set to go public on April 14th, also holds Bitcoin. The company currently has 4,487 Bitcoin, but it is unclear when its Bitcoins were acquired or how as it has not publicly stated.
Overall, companies that have purchased Bitcoin have posted extremely impressive returns, begging the question of who may follow next.