US President Donald Trump’s media group and Tesla have joined a growing list of companies buying significant amounts of bitcoin to diversify reserves, counter inflation, and attract investors.
Companies like US firm Strategy hold over 600,000 bitcoin tokens, or around three per cent of the total market capitalisation.
Strategy co-founder Michael Saylor created value for its original investors by offering cryptocurrency-linked shares.
Companies buy bitcoin to diversify cash flow and combat inflation. Some struggling firms aim to restore their image by backing themselves with a perceived solid asset that appreciates over time.
However, bitcoin’s volatility is high, four times greater than the main US stock index. Liquidating large holdings can be difficult due to high value.
Professor Campbell Harvey warns against using cash reserves for cryptocurrency purchases.
Strategy’s stock price is 70 per cent above its bitcoin reserve value. If it fails to monetise these assets, a crypto investment bubble may burst, contrary to the original philosophy of decentralised payment.
Source: https://www.malaymail.com/news/money/2025/08/18/from-tesla-to-trump-media-companies-pile-into-bitcoin-but-can-the-bubble-hold/187954