A new wave of UK-listed companies holding bitcoin on their balance sheets may take encouragement from the latest results at Strategy, the world’s largest corporate holder of the cryptocurrency, which posted a record quarterly profit on Thursday.
With names such as The Smarter Web Company (AQSE:SWC), briefly valued at £1 billion, London BTC Company Ltd (LSE:BTC, OTCQB:VINZF), Vaultz Capital PLC (AQSE:V3TC) and Coinsilium Group Limited (AQSE:COIN, OTCQB:CINGF) all following the treasury strategy pioneered by major US players, Strategy’s results highlight how corporate bitcoin holdings have become a mainstream investment theme on both sides of the Atlantic.
The US-based firm, formerly known as MicroStrategy Incorporated (NASDAQ:MSTR), reported net profit of $9.97 billion, or $32.60 per share, for the three months to the end of June, a dramatic turnaround from a $102.6 million loss a year earlier.
The gain was fuelled by a $14 billion unrealised increase in the value of its bitcoin holding, which stood at 597,325 coins at an average cost of $70,982. Bitcoin is currently trading around $116,600.
The recent surge in bitcoin’s price came as US President Donald Trump signed the GENIUS Act into law, a move widely seen as a watershed moment for digital assets.
Anticipation surrounding the new regulation helped push bitcoin past $120,000 for the first time, with listed companies such as Strategy, Cleanspark, Riot Platforms and Marathon Digital blazing a trail for UK peers.
Until late 2024, companies were only allowed to book losses if bitcoin fell below their purchase price, but could not recognise gains unless they sold their holdings.
That changed with new accounting rules, which now allow companies to report profits as bitcoin’s value rises.
Strategy, which began accumulating bitcoin in 2020 and has used both convertible bonds and stock sales to fund its buying spree, has seen its shares rise nearly 39% this year, outpacing bitcoin’s 25% gain.
Executive chairman Michael Saylor said: “We’re in a hyper-growth, hyper-adoption phase for bitcoin as a treasury reserve asset.”
The company’s rapid rise, its shares nearly quintupled last year, earning it a place in the Nasdaq 100 index, has encouraged several UK firms to adopt similar treasury strategies and, in some cases, diversify into other digital tokens such as ether.