Why More and More Companies Are Buying BitcoinTayfun Coskun/Anadolu via Getty Images * More companies are adding Bitcoin to their balance sheets, driving demand. • Low-growth companies would be good candidates to follow Strategy's lead, Bernstein said. • This is why Bitcoin has become a must-have asset for some companies. The Bitcoin craze has attracted the attention of more companies, which are following Strategy's lead and piling up tokens in the company's coffer. Recently, more and more companies have transformed themselves into bitcoin-holding companies, incorporating top cryptocurrencies into their balance sheets, in addition to more traditional assets such as cash and bonds. As of now, 80 companies have embraced the "Bitcoin Standard", which owns about 3.4% of the total Bitcoin supply, according to a report by Bernstein Research. Many have tried to replicate the success of Strategy, which pioneered the Bitcoin Treasury Strategy and amassed around 554,000 Bitcoins. Over the past 12 months, the company's stock has outperformed the Seven Wonders, the S&P 500, and its underlying Bitcoin holdings. Then, last month, GameStop added $500 million of Bitcoin to its balance sheet in its first cryptocurrency purchase, while Trump Media & Technology Group announced plans to raise $2.5 billion for the Bitcoin treasury. In April, SPAC Cantor Equity Partners merged crypto firm Twenty One Capital with the goal of becoming a pure Bitcoin holding company and saw its stock rise nearly 500% in the first week of trading. Bernstein predicts that by 2029, business demand could drive $330 billion into Bitcoin, of which up to $124 billion will come from strategy. The influx of corporate funds will have a bullish effect on the price of Bitcoin. However, buying Bitcoin is not a one-size-fits-all strategy, and Bernstein said the strategy's success can be difficult to replicate. Small, low-growth companies are good candidates, and Bernstein estimates that there are about 2,000 companies around the world with a market capitalization of less than $100 billion that could be prime candidates for Bitcoin adoption. These companies share common characteristics, such as low growth ( defined as ) with an annual revenue growth rate of less than 5%, low leverage, and high cash reserves of more than $100 million. Bitcoin could be a lifeline for these types of companies. Companies with poor growth prospects may decide to invest their cash in Bitcoin instead of sitting idle on their balance sheets to earn a small return. A case in point is MetaPlanet, a Japanese hotel management company that transformed into a Bitcoin treasury. After years of weak profitability and stagnant share prices, MetaPlanet began buying Bitcoin in 2024 with cash raised from bond and stock sales. The move paid off, with the stock up more than 500% over the past year. The story continues that some large companies, such as Tesla, have also bought Bitcoin in the past. However, other large-cap companies have rejected proposals to buy Bitcoin. Meta is the latest example, with more than 99% of shareholders voting against the Bitcoin vault plan earlier this week. Amazon and Microsoft's proposals also failed to pass. Can Strategy's strategy be copied? Not all businesses can achieve the same success as Strategy. The business software company has been amassing Bitcoin for five years, attracting investors in the form of equity, convertible debt, and preferred stock to fund more purchases. Stocks provide investors with price appreciation, convertible debt offers more cap yields, and preferred shares offer dividend payments. The company has also benefited from the experience after experiencing multiple Bitcoin price crashes. MetaPlanet and other finance companies have issued convertible debt and equity, but Bernstein notes that these companies are not the same size and ability to raise capital as Strategy. However, with the popularity of Bitcoin skyrockets, it's clear that a lack of experience won't stop these companies from borrowing from the strategy manual.