Public companies are no longer sitting and waiting on Bitcoin. They’re making it work. Over 160 listed companies have accumulated over 300,000 Bitcoin.
But instead of just holding, they are chasing the yield. They even buy loans, staking, writing options, and even NFTs to narrow down all the value from the crypto. The traditional “HODL” strategy that once defined Bitcoin’s corporate era has been elucidated under shareholder pressure.
According to a Bloomberg research report, the industry is changing courses rapidly, and otherwise no one is pretending.
Companies that once treated Bitcoin as a symbol of a rebellion against Wall Street now borrow the tactics. The executives are not pushed back. They’re taking part.
Earning passive returns is a new game, and for more and more companies, keeping without returns is no longer an option. Many of them are still thinking about ways to manage risk, but that has not stopped the flood of interest.
Companies are using lending, options and NFTs to earn returns
DDC Enterprise, a struggling Asian food company, had its shares halted earlier this year on the New York Stock Exchange after losses piled up. In response, the company said it would be loaded into Bitcoin, rebranding itself as the Cryptocurrency Ministry and partnering with QCP Capital to generate revenue. After the announcement, the stock has exceeded 800%. Darius City, founder of QCP, said their goals were simple. Bring the same type of risk-controlled yield strategy into the crypto from traditional funds.
At Pantera Capital, Cosmo Jiang said most of the Treasury-owned companies are at least considering yields. Some have already made money from Ethereum and Solanas Staking. Others are exploring crypto lending and distributed finances. One of the larger Ethereum holders, Sharplink Gaming, is still planning risks. John Chard, the company’s vice president of operations, said they were intentional. “It’s best to do these things in a measured way, not in a hurry,” he said.
Other companies are trying to take a more proactive approach. Bitcoin Standard Treasury Company, also known as BSTR, is considering creating put options to buy more Bitcoin at a discounted price. GamesQuare Holdings, which holds Ether, recently purchased a $5 million Cryptopunk NFT.
Company executives said they also aim to get a return of 6% to 10% by converting NFTs into yield assets. Twenty One Capital is debating whether to lend US dollars against Bitcoin collateral.
As yield strategies expand, risk management becomes important
Because Bitcoin does not incorporate yields, companies are forced to withdraw income by lending coins, posting them as collateral, or selling future profits through options.
Andrew Kies, chairman of the Ether Machine, said his company has a risk management team dedicated to getting things under control. Still, others are skeptical. Chris Lane of Galaxy Digital said, “Companies generate 5% yields and ‘10% yields’ and the alarm bell goes off quickly. “He says. He said investors need to pay close attention to the activities behind those numbers.
The crypto market still remembers what happened in 2022. Companies like Terra, celsius, blockfi and FTX have chased high returns with dangerous strategies and volatile collateral. Businesses today may look different, but they are still exposed. The old anti-bank ideals of early Bitcoin fans now collide with quarterly revenue reporting and enforcement pressures.
That’s not the way Michael Saylor built his Bitcoin play. The Strategic CEO famously took on debt and sold equity to accumulate Bitcoin over the long term.
Morten Christensen, founder of AirDropalert.com, said companies moving towards a risky yield strategy are abandoning Saylor’s long game model. “He’s playing a long game, betting on the rarity of digital,” he said. “Wrapping Bitcoin with high-risk financial engineering will undermine your core values.”
Still, the strategy doesn’t completely rule out pivots. A company spokesperson said it has not yet generated revenue from Bitcoin, but confirmed that the SEC filing could change its future stance.
Some of the early Bitcoin miners have already shifted. Mara Holdings uses options to increase your income. CleanSpark is testing a more sophisticated strategy to turn price volatility into a stable return. CFO Gary Vecchiarelli said, “We’re going to be a derivative of the more exotic type soon. We’re going to make money on volatility.”
