Companies rush into Bitcoin: boom or risk for investors?

Companies rush into Bitcoin: boom or risk for investors?

Developments in the Bitcoin sector are taking on dizzying shapes as more and more companies and institutional investors invest in this cryptocurrency. Since the start of the year, companies have accumulated a total of $350 billion worth of Bitcoin, representing about 15 percent of the total Bitcoin supply. According to a report by t3n, more and more companies, prompted by their corporate strategies, have considered incorporating Bitcoin as part of their financial reserves. Stock and bond issues play an important role in financing these investments.

A particularly striking example is Trump Media & Technology Group (TMTG), which plans to sell $1.5 billion in shares and $1 billion in convertible bonds to invest in Bitcoin. CEO Devin Nunes emphasizes that this strategy is intended to protect TMTG, especially against discrimination by financial institutions. At the end of the first quarter, TMTG had $759 million in cash and cash equivalents.

Increasing investments and strategic realignments

The willingness to buy is further encouraged by the latest developments in the Bitcoin market. GameStop, the retailer known for its volatile stock, has acquired 4,710 Bitcoin worth $513 million and plans to make further purchases. What's impressive is that both companies follow the investment model of Michael Saylor, the co-founder of Strategy. However, Strategy has a broader strategy: the company plans to issue new shares to finance the purchase of $2.1 billion worth of Bitcoin and already holds 567,230 Bitcoin worth around $63 billion.

At the end of May 2025, Bitcoin prices are around $108,061 after an all-time high of almost $112,000. Experts predict that the price could rise to $150,000 to $175,000 in the coming months. This positive forecast is supported by record inflows into Bitcoin ETFs, which reached $5.5 billion in the current month alone. Institutional investors increasingly see Bitcoin as digital gold and invest with long-term perspectives.

Risks and regulatory developments

Despite the euphoria, there are also critical voices. Some analysts warn about the risks associated with financing Bitcoin purchases with debt. Additionally, a bill to loosen crypto regulation is being discussed in the US Senate, raising concerns about a possible rise in fraud cases. The US government has decided to hold confiscated digital currencies instead of selling them, and government adoption of Bitcoin as a reserve is being discussed in some countries.

The “Fear and Greed” index currently stands at 60 out of 100 points, indicating a “greed” mood in the crypto market. In the context of current market developments, profit realization is decreasing; Less than a billion dollars in profits were recently realized. This suggests that many investors want to hold on to their positions for the long term.

Overall, it appears that the Bitcoin market, supported by a flood of institutional investments and corporate strategies, is on track to reach new heights, while at the same time the discussion about the regulation and risks of the market continues.

For more information you can read the articles from t3n and Crypto Magazine read.