# Listed Companies Worldwide Hold 820,000 Bitcoin: Coinbase Research
According to research conducted by U.S.-based cryptocurrency exchange Coinbase, approximately 228 publicly listed companies globally currently hold a total of 820,000 Bitcoin (BTC). However, among these, only about 20 companies, and an additional eight firms holding Ethereum (ETH), Solana (SOL), and Ripple (XRP), have adopted the leveraged financing strategy pioneered by MicroStrategy, now rebranded as Strategy.
This trend aligns with changes in cryptocurrency accounting standards that took effect on December 15, 2024. Prior to these changes, U.S. Generally Accepted Accounting Principles (GAAP) required companies to classify cryptocurrencies as intangible assets, allowing them to only account for losses. Gains could not be recognized until the assets were sold. However, the Financial Accounting Standards Board (FASB) updated its guidelines in December 2023, enabling companies to assess and report cryptocurrencies at fair value on their financial statements.
The previous standards, which recorded only losses without reflecting gains, complicated cryptocurrency adoption for many companies. The revised standards now allow for a more accurate representation of cryptocurrency holdings, reducing the burden of complex accounting procedures. As a result, the number of companies disclosing their cryptocurrency holdings has increased this year.
# Emergence of Cryptocurrency-Holding Firms and Systemic Risks
Initially, firms like Strategy and Tesla, which ran traditional businesses, bought Bitcoin for investment purposes. Recently, though, new firms have emerged that primarily accumulate cryptocurrencies. These companies raise funds through stock or convertible bond issuances and trade at a premium to their net asset value.
The rise of publicly traded cryptocurrency-specific companies (PTCVs) significantly impacts the market, leading to increased demand for cryptocurrencies and potential systemic risks.
Firstly, there is the threat of “forced selling pressure.” Many PTCVs issue convertible bonds to purchase cryptocurrencies. While convertible bondholders benefit from rising stock prices, they are guaranteed principal repayment if the venture fails. Companies will have to sell their cryptocurrency holdings to repay these debts. If multiple companies do this simultaneously, it could trigger a significant market downturn.
Secondly, “voluntary selling pressure” presents another risk. If some companies sell cryptocurrencies to manage cash flow or fund operations, the market might interpret this negatively. Falling prices could prompt other companies to sell as well, causing a ripple effect of market instability.
