Financially Struggling Companies Turn to Bitcoin to Boost Share Value
Companies facing certain financial problems are showing interest in Bitcoin and buying this asset to raise their share prices. However, experts warn about the risks of a new bubble forming against the backdrop of these actions, as stated in a Financial Times article.
Three months ago, Georges Karam, CEO of French semiconductor company Sequans Communications, wasn’t even considering buying Bitcoin. But after learning about a healthcare company that had purchased the first cryptocurrency and watched its shares skyrocket, he became “interested.”
Following a failed contract that worried investors, Karam sought a way to “unlock the value of the company” and decided to implement a bitcoin strategy, reporters noted.
Sequans raised $384 million through debt and equity capital markets and used it to buy Bitcoin. The company's shares surged 160%.
Recall that Sequans Communications’ Bitcoin portfolio reached 2,317 BTC, acquired for roughly $270 million.
“Today I am 100% convinced that Bitcoin is here to stay,” Karam said.
He was inspired by Bitcoin evangelist Michael Saylor, whose company Strategy has been regularly buying billions of dollars’ worth of Bitcoin since 2020.
Just last week, Strategy bought $2.5 billion worth of Bitcoin, marking the third-largest purchase in the company’s history. Strategy’s shares have risen more than 3,000% over five years.
According to Architect Partners, 154 public companies worldwide have raised or committed to raising $98.4 billion to buy crypto assets by August 5, 2025 — compared to only 10 companies that had raised similar amounts previously. These companies include biotech firms, hoteliers, electric car makers, vape producers, and even gold mining companies.
Notably, US President Donald Trump’s family media company raised $2 billion in July to invest in Bitcoin and related assets.
The demand for such crypto treasury strategies is driven by record prices for Bitcoin and stock indices, as well as restrictions on direct cryptocurrency investments in some countries, the publication emphasized.
Bubble Risks and Analyst Warnings
According to the Financial Times, crypto ETFs are banned in the UK and Japan, so investors use treasury shares as a proxy for owning crypto assets.
But analysts warn that overindulgence could lead to disaster.
Brian Estes, CEO of Off The Chain Capital, compared the current situation to the “dot-com bubble of 1998,” saying:
“You can compare it to the Internet bubble of 1998… Just as fast as they went up, they can go down too.”
Additionally, Natixis CIB expert Eric Benoit warned:
“The risk is that Bitcoin will fall… It could become systemic for the entire ecosystem.”
Examples show that investors are willing to pay significantly more for company shares than the value of their cryptocurrency reserves.
For instance, according to Yahoo Finance, US-based KULR Technology has a market cap of $198 million, with an operating loss of $9.4 million for Q1 2025, but owns 1,021 BTC, which at the time of writing exceeds $120 million.
Emerging Financial Practices and Market Dynamics
Some companies are already planning to use Bitcoin as collateral for new financial services, including lending, though this practice has led to high-profile failures—such as during the 2022 market crash and bankruptcy of the FTX exchange.
In May, Cantor Fitzgerald issued loans secured by Bitcoin to the FalconX and Maple Finance projects.
Later in July, Block Earner began issuing Bitcoin-backed mortgages in Australia.
Despite warnings, investors are rushing to capitalize on the boom. Market participants themselves admit the scenario could be dramatic, the Financial Times noted.
Estes concluded: “It’s going to end badly, it’s going to end in a bubble. As fast as they went up, they can go down.”
