With the support of the capital market! The scale of Bitcoin held by MSTR is approaching the cash on the books of Amazon, Alphabet - C, and Microsoft

The enterprise software company MicroStrategy (MSTR) is making a massive bet on Bitcoin, pushing it to a whole new level. The value of its Bitcoin assets is nearing the cash reserves of tech giants like Amazon, Alphabet - C, and Microsoft. This not only highlights the astonishing returns of the company's aggressive strategy but also marks an unprecedented focus on Bitcoin as a corporate financial reserve asset.

According to information released by MicroStrategy on the social platform X on Tuesday, as Bitcoin reached a historic high of $126,080 on Monday, the company's holdings of 640,031 Bitcoins were valued at over $80 billion at one point. This figure brings the scale of its corporate treasury close to that of Amazon, Alphabet - C, and Microsoft, which each hold approximately $95 billion to $97 billion in cash or cash equivalents.

This milestone comes as the corporate acceptance of Bitcoin is expected to explode in 2025. The number of publicly traded companies incorporating Bitcoin into their balance sheets has increased from fewer than 100 at the beginning of the year to over 200 now. MicroStrategy's success stands in stark contrast to the hesitance of companies like Microsoft and Meta, which missed out on substantial paper gains by rejecting proposals to use Bitcoin as a reserve asset.

Against the backdrop of dollar inflation and massive national debt, the narrative of Bitcoin as a potential hedge is gaining more mainstream recognition. From JP Morgan analysts to BlackRock's CEO, heavyweight voices in finance are increasingly viewing Bitcoin as a "devaluation trade" option to combat the depreciation of fiat currencies, signaling a profound shift in corporate financial management strategies.

MSTR's Bitcoin Holdings Value Exceeds Apple and Nvidia Cash

Through continuous purchases of Bitcoin, MicroStrategy's corporate treasury value has surpassed the cash positions of companies like Nvidia, Apple, and Meta. According to data, the company purchased all 640,031 Bitcoins at an average cost of $73,981, currently yielding a paper profit of 65%, amounting to approximately $30.4 billion.

Despite MicroStrategy's impressive Bitcoin reserves, it still falls short compared to the global corporate cash king, Berkshire Hathaway, which has about $344 billion in cash reserves. Among the top ten companies by corporate treasury size, Tesla is another company holding Bitcoin, but its 11,509 Bitcoins (valued at about $1.4 billion) account for only a small portion of its total reserves of $37 billion.

Hedging Against Fiat Currency Depreciation: Bitcoin Becomes the New Favorite "Devaluation Trade"

The growing interest of corporations in Bitcoin is driven by a deeper motivation to hedge against macroeconomic risks. JP Morgan analysts pointed out last week that in the context of U.S. national debt nearing $38 trillion, Bitcoin, like gold, is a "devaluation trade" that can serve as a tool to hedge against dollar inflation This view has been echoed by BlackRock CEO Larry Fink. The former Bitcoin critic stated in January this year that due to concerns over currency devaluation, Bitcoin prices could reach $700,000. Ethan Peck, deputy director of the conservative think tank National Center for Public Policy Research (NCPPR), expressed a similar view when submitting proposals to Microsoft and Meta, believing that Bitcoin can better protect corporate profits from the erosion of currency devaluation. Peck pointed out, "As cash continues to devalue and bond yields fall below real inflation rates, 28% of Meta's total assets are continuously undermining shareholder value."

Hesitation and Missed Gains of Tech Giants

Despite the increasingly compelling reasons for Bitcoin as a reserve asset, some tech giants remain cautious and have thus missed recent market gains. Shareholders of both Microsoft and Meta voted against the Bitcoin allocation proposal put forward by NCPPR.

Reportedly, when Microsoft rejected the proposal, Bitcoin was trading at $97,170; when Meta rejected it, the price was $104,800. This means both companies missed out on double-digit gains from the subsequent rise in Bitcoin prices, while the value of their cash positions continued to be eroded by inflation. The price volatility of Bitcoin was a major concern that influenced Microsoft shareholders to vote against the proposal. It is known that NCPPR also made a similar suggestion to Amazon's board in December last year, but no significant progress has been made to date.

Surge in Corporate Adoption: 2025 as the Year of Bitcoin Integration

Although some giants are still observing, 2025 has become a breakthrough year for corporate adoption of Bitcoin. The number of publicly traded companies incorporating Bitcoin as part of their balance sheets has surged from fewer than 100 at the beginning of the year to over 200.

With Bitcoin prices currently trading near the historical highs set on Monday, almost all publicly traded companies holding Bitcoin have recorded profits on their investments. MicroStrategy's success has not only provided a model for these companies but has also sent a strong signal to the entire capital market: the appeal of Bitcoin as an alternative reserve asset is rapidly increasing in the current macro environment.

Risk Warning and Disclaimer

The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at their own risk