Bitcoin becomes corporate reserve choice for Tesla, Trump Media

August 08, 2025 (MLN): US President Donald Trump’s media group and Tesla, the electric carmaker owned by billionaire Elon Musk, are among a growing number of companies purchasing massive amounts of bitcoin to diversify reserves, counter inflation, and attract investors, analysts say.

Bitcoin, the largest cryptocurrency by market capitalisation, is often held by companies to participate in activities such as “mining”, the process of validating transactions in exchange for digital tokens.

Tesla has previously accepted bitcoin payments, while Trump Media plans to launch crypto investment products, as APP reported.

Japanese hotel firm MetaPlanet has shifted to bitcoin buying, and US company MicroStrategy, now known as Strategy, holds over 600,000 bitcoins, more than three percent of the total supply, after pivoting from software sales.

Co-founder Michael Saylor generated significant value for early investors by offering shares linked to cryptocurrencies at a time when other crypto investment products were not permitted.

According to Eric Benoist of Natixis, companies collect bitcoin to diversify cash flow, hedge against inflation, or, in some cases, improve their image.

Strategy focuses on bitcoin accumulation to attract investors, while exchanges like Coinbase use reserves as collateral.

Bitcoin’s value has surged ninefold in five years, driven by US regulatory changes under Trump and strong sector support.

However, it remains four times more volatile than the S&P 500, warns Duke University professor Campbell Harvey, who cautions against using safe-haven cash reserves for crypto.

At around $117,000, bitcoin’s price is also influenced by “whales”, and large holders like Strategy would struggle to liquidate holdings without triggering a price drop.

 Jack Mallers of Twenty One Capital embraces volatility, noting the market would need to be flooded for a crash.

Strategy’s stock trades about 70% above its bitcoin reserve value, fuelled by purchases that attract more investors and boost share prices.

However, experts warn the firm will eventually need to monetise these assets, such as by linking them to financial products, or risk a collapse in what some fear could be a crypto investment bubble.

Benoist adds that this hoarding runs counter to bitcoin’s original 2008 vision as a decentralised payment method, with many coins now locked away in untouched digital vaults.

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