Bitcoin price surge spurs corporate crypto buying frenzy

The recent surge in bitcoin prices is prompting a wave of digital asset companies to raise capital for large-scale cryptocurrency acquisitions, driven by renewed investor enthusiasm and favourable market conditions.

BTC has soared 50% since early April, hitting a record high of $111,965 last week. This sharp rally is encouraging firms to launch vehicles that raise funds through equity and debt markets with the aim of building extensive crypto reserves. Notably, the media firm linked to Donald Trump’s family announced a $2.5 billion capital raise to purchase digital assets.

The number of publicly listed companies holding bitcoin has risen from 89 at the start of April to 113, now collectively owning over 800,000 bitcoin—worth approximately $88 billion—according to BitcoinTreasuries.net.

Many are attempting to follow the path of Strategy (formerly MicroStrategy), a software company turned bitcoin investment powerhouse. With 580,000 bitcoin on its books and a market value exceeding $100 billion, Strategy exemplifies how corporations can leverage capital markets to become major bitcoin holders.

“Favorable macroeconomic conditions, such as easing US-China trade tensions and reduced volatility, are supporting this trend,” said Aaron Chan, digital asset strategist at Dutch market maker Flow Traders. “Investors are looking to get in early on what could be the next Strategy.”

The bitcoin boom coincides with the industry’s flagship conference in Las Vegas, which last year featured a campaign appearance by Trump, who vowed to make the U.S. “the bitcoin superpower.”

Among those capitalizing on the surge is Twenty One Capital, a venture led by Jack Mallers—key to bitcoin’s legal tender status in El Salvador. The initiative, formed in partnership with Cantor Equity Partners (led by Brandon Lutnick and backed by SoftBank and Tether), is raising funds to acquire bitcoin.

Other entities joining the rush include Strive Asset Management, co-founded by U.S. politician Vivek Ramaswamy, and American Bitcoin, a mining firm partially owned by Donald Trump Jr. and Eric Trump. Both are merging with listed entities to gain stock market access and secure funding. Strive alone aims to raise $1.5 billion to support its initial bitcoin buys.

Even unconventional mergers are emerging. Nakamoto Holdings, a blank-check company, is merging with opioid healthcare firm KindlyMD to create a bitcoin treasury business. Its CEO, David Bailey, said the firm is “packaging bitcoin into various forms” to attract diverse investors.

Executives across the industry see Strategy’s approach—using stock, preferred shares, and convertible bonds to fund aggressive bitcoin acquisitions—as a blueprint. This strategy has resulted in a company valuation ($101 billion) significantly outpacing the value of its bitcoin holdings ($64 billion), with investors betting on further bitcoin price increases and share price gains.

These corporate purchases are believed to be contributing to bitcoin’s price momentum. “Twenty One and other bitcoin treasury firms are boosting demand for bitcoin, which acts as a price catalyst,” said Christophe Roehri, deputy CEO of digital asset manager TOBAM, which holds shares in Strategy.

With bitcoin’s total supply capped at 21 million, crypto advocates argue that this wave of institutional buying will enhance its scarcity and long-term value. Some of these ventures are already seeing stock market benefits. Cantor Equity Partners, for example, has a pro forma enterprise value of $14.4 billion—three times the value of the 42,000 bitcoin it plans to hold.

Shares of companies involved in crypto-related deals are surging. Gryphon Mining, American Bitcoin’s target, is up 120%, KindlyMD has risen 540%, and Asset Entities, which is being acquired by Strive, has jumped 1,240% since May 12.

Still, some analysts caution that mimicking Strategy’s success may prove challenging. “Investor demand for bitcoin-linked securities won’t materialize automatically,” warned Patrick Bush of VanEck. “Saylor’s prominence and credibility have been instrumental.”

Skeptics also question whether the new wave of acquisitions can significantly impact bitcoin’s price. “Even Strategy only holds 2.7% of the total bitcoin supply,” Roehri noted. “That’s still small compared to traditional asset classes.”

Flow Traders’ Chan added that broader market factors—such as volatility and interest rate uncertainty—could limit investor appetite for these ventures. “If the capital markets remain shaky, there may be less enthusiasm for these new offerings,” he said.