The Evolution of Corporate Digital Asset Reserve Strategies: From MicroStrategy to Bitmine

Introduction

In June 2025, the stock price of Bitmine Immersion Technologies skyrocketed nearly 37 times in just a few days, this astonishing event once again brought the corporate digital asset reserve strategy into the spotlight. This article will delve into the origins, developments, and possible future directions of this phenomenon.

Chapter One: The "Bitcoin Standard" Initiated by MicroStrategy

In the summer of 2020, amid the backdrop of global monetary easing policies, MicroStrategy CEO Michael Saylor likened the company's cash reserves to "melting ice cubes." To combat inflation, the company announced on August 11, 2020, that it would spend $250 million to acquire 21,454 bitcoins as its primary reserve asset.

MicroStrategy subsequently upgraded this strategy to a more aggressive model: raising funds through the issuance of convertible bonds and stocks while continuously increasing its Bitcoin holdings. This model has formed a unique flywheel: using rising stock prices to obtain low-cost funds, which are then invested in Bitcoin, while the increase in Bitcoin prices further drives up stock prices.

Despite enduring severe tests during the crypto market winter of 2022, MicroStrategy's model ultimately persevered. By mid-2025, its Bitcoin holdings had exceeded 590,000, and the company's market value had grown from less than $1 billion to over $100 billion.

MicroStrategy's innovation lies in reshaping the company into a "Bitcoin development company," providing investors with a unique, tax-advantaged, and institution-friendly exposure to Bitcoin. Saylor likened it to a "leveraged Bitcoin spot ETF," creating a new category of publicly traded companies—proxy instruments for digital assets.

Chapter 2: Diversified Attempts of Global Imitators

MicroStrategy's success has inspired imitation in the global business community. Companies from different regions and industries have adopted various strategies, resulting in different outcomes.

Since Japanese investment company Metaplanet launched its Bitcoin strategy in April 2024, its stock price has increased over 20 times. Its success is partly attributed to Japan's tax laws, which make indirect investment in Bitcoin through shareholding more favorable than direct ownership.

In contrast, the attempts of the Chinese company Meitu were less successful. After announcing the purchase of digital assets in March 2021, the company fell into difficulties with financial reporting, and its stock price performance was also unsatisfactory.

The American medical technology company Semler Scientific almost completely adopted MicroStrategy's strategy in May 2024, resulting in a significant increase in its stock price. Meanwhile, fintech giant Block took an earlier and more moderate integration approach.

The case of Japanese gaming giant Nexon shows that simply purchasing Bitcoin is not enough to trigger a surge in stock prices. Nexon bought $100 million worth of Bitcoin in April 2021, but clearly defined it as a conservative financial diversification operation, leading to a lukewarm market reaction.

Chapter 3: Deconstructing the Surge Phenomenon of Bitmine

The success of Bitmine comes from its carefully designed "alchemy formula":

1. Differentiated narrative: Choosing Ethereum as a reserve asset provides a more promising new story.

2. "Tom Lee Effect": The appointment of renowned analyst Tom Lee as chairman has injected significant credibility and appeal into the company.

3. Endorsement from top institutions: The private placement has the participation of top institutions such as MOZAYYX, Founders Fund, Pantera, and Galaxy Digital.

These actions indicate that the market for crypto proxy stocks is highly "reflexive", where the driving force of value is not only the assets held but also the quality of the stories told and their potential for dissemination.

Chapter Four: Underlying Support Structure

An important catalyst for the wave of corporate cryptocurrency purchases in 2025 is the new regulation ASU 2023-08 released by the Financial Accounting Standards Board (FASB) in the United States. This standard requires companies to measure digital assets at fair value, with value fluctuations recorded directly in the income statement each quarter, clearing the way for businesses to adopt cryptocurrency strategies.

The core mechanism of these crypto proxy stocks is the "net asset value premium" flywheel. The company's stock price is usually higher than the net value of the crypto assets it holds, allowing them to issue more shares at high prices to purchase more crypto assets, creating a positive feedback loop.

The approval of the Bitcoin spot ETF in 2024 has also had complex effects. On one hand, the ETF poses a competitive threat that could erode the premium of proxy stocks; on the other hand, it brings more institutional funds and legitimacy to Bitcoin, making it less aggressive for companies to include it on their balance sheets.

Summary

The corporate crypto reserve strategy has evolved from a niche hedge against inflation to a new paradigm of capital allocation that reshapes corporate value. It blurs the lines between operating companies and investment funds, turning the public equity market into a super leverage for accumulating digital assets.

This strategy demonstrates an astonishing duality. Some pioneers have created a massive wealth effect, but their success is closely related to the volatility of digital assets and market speculation sentiment, with inherent risks also being significant.

With the implementation of new accounting standards and the success of new strategies, more companies may adopt diversified digital asset strategies in the future. This grand experiment taking place on corporate balance sheets will continue to reshape the intersection of corporate finance and the digital economy.