Public firms turn balance sheets into Bitcoin vaults: Gamestop raises $1.5 billion; Metaplanet adds 160 BTC

Public companies are increasingly converting their balance sheets into Bitcoin reserves. Gamestop (GME) has raised $1.5 billion in capital, with potential plans to allocate part of the funds toward expanding its Bitcoin treasury. Metaplanet (MTPLF) has added 160 BTC to its holdings, bringing its total to 4,206 BTC. Meanwhile, Bitcoin mining firm MARA Holdings (MARA) is preparing a $2 billion stock offering to acquire more Bitcoin, signaling growing institutional interest in crypto assets.

Balance sheets to Bitcoin reserves

Public companies’ interest in Bitcoin has increased rapidly. Many are following Strategy’s (MSTR) example and adding BTC to their treasury reserves. 

GameStop, a US video game retailer, is the newest. GME announced last week that it had updated its investment policy to include Bitcoin as a treasury reserve asset. In its latest filing on Monday, it raised a total capital of $1.5 billion ($1.3 billion convertible note offering, including full exercise of the $200 million greenshoe option). The company plans to strengthen its balance sheet by acquiring Bitcoin, potentially using part of the funds for this purpose.

On Tuesday, Japanese investment firm Metaplanet announced that it has purchased an additional 160 BTC for $13.3 million at an average price of $83,264 per Bitcoin. The firm currently holds a total of 4,206 BTC.

Last week, Bitcoin mining firm MARA Holdings announced that it is preparing a $2 billion stock offering to acquire more Bitcoin. MARA has embraced Michael Saylor’s strategy of raising funds through equity and convertible bond offerings to purchase Bitcoin in the open market. The mining company currently holds 46,376 BTC in its treasury, making it the second-largest Bitcoin stash among publicly traded companies behind Strategy’s 506,137 BTC.

The public companies’ interest in Bitcoin indicates a growing acceptance of BTC as a strategic asset, boosting its legitimacy and potentially driving long-term adoption. This trend is generally bullish for Bitcoin’s price due to increased demand, reduced circulating supply, and positive market sentiment. If this trend continues, Bitcoin could see more stable price growth over the long term, but short-term fluctuations are likely to persist as the market adjusts to this new wave of institutional involvement. When writing on Wednesday, Bitcoin trades around $84,400.

Top public companies holding BTC. Source: CoinGecko