Companies Rush to Buy Bitcoin, But Some May Be Using Crypto as Desperate Marketing Ploy

The number of public companies holding Bitcoin doubled in the first half of 2025, jumping from 70 firms in December 2024 to 134 companies by June.

These businesses now hold a combined 244,991 Bitcoin worth over $29 billion.

But experts warn that some struggling companies might be using crypto purchases as a last-ditch effort to boost their stock prices rather than making smart business moves.

“The temptation exists for firms under pressure,” said Mike Foy, chief financial officer at AMINA Bank, in a recent interview with Cointelegraph.

The Windtree Warning

The biggest warning sign came from biotech company Windtree Therapeutics. In July, the struggling firm announced it would buy $60 million worth of BNB tokens, followed by plans for a massive $500 million investment.

The stock price jumped 32% over two days after the announcement. But the celebration didn’t last long.

By August, Windtree’s stock had crashed more than 90% from its peak. The company was kicked off the Nasdaq exchange for failing to keep its stock price above $1. Shares now trade for just 11 cents.

“This is possibly a sign that this isn’t a long term plan but rather a short term share price play,” Foy explained about companies like Windtree.

Red Flags to Watch

Banking experts have identified several warning signs that suggest companies might be using crypto purchases for publicity instead of genuine business reasons:

Management Experience: Does the company’s leadership actually understand cryptocurrency risks? Many firms jumping into crypto lack basic knowledge about digital assets.

Debt Problems: Companies with high debt levels or financial troubles often announce crypto purchases when they’re running out of options.

Ignoring Core Business: When companies spend more time talking about their crypto holdings than fixing their main business problems, it’s usually a bad sign.

Insider Selling: If executives are selling their own stock while promoting the company’s crypto strategy, investors should be very careful.

Mixed Results Across Industries

Not all companies buying crypto are desperate. Some have seen genuine success with their digital asset strategies.

MicroStrategy, now called Strategy, leads all companies with over 607,000 Bitcoin worth about $72 billion. The software company’s stock has performed well because it committed to Bitcoin early and stuck with its plan.

Source: @Strategy

Japanese firm Metaplanet saw its stock price jump 1,900% after adopting a Bitcoin strategy. But unlike Windtree, Metaplanet had a clear long-term plan and management with crypto experience.

Other companies haven’t been so lucky. SharpLink Gaming announced plans to raise $425 million for Ethereum purchases. Its stock rocketed from under $4 to nearly $40, then crashed back to $9 within weeks.

The PIPE Problem

Many of these crypto announcements involve something called PIPE deals – private investments in public equity. These deals let companies raise money quickly by selling shares to big investors at discounted prices.

The problem comes later. When those big investors are allowed to sell their cheap shares on the open market, it often crashes the stock price. Retail investors who bought shares after the crypto announcement can lose most of their money.

BitMine Immersion Technologies raised $250 million through a PIPE deal and announced an Ethereum strategy. The stock jumped over 1,300%, but analysts warn that massive selling pressure is coming when the PIPE investors can trade their shares.

Government Support Changes the Game

The crypto treasury trend got a boost from political changes. President Trump has spoken about creating a national Bitcoin reserve, and his administration ended special banking restrictions on crypto companies.

This government support has made crypto seem more legitimate to corporate executives. But it has also created opportunities for struggling companies to use crypto announcements as marketing stunts.

VivoPower, a renewable energy company in deep financial trouble, was bailed out by a Saudi prince who invested $100 million in XRP. The company transformed from a failing energy firm into a crypto-focused business almost overnight.

What Investors Should Know

The corporate crypto boom includes both smart business moves and desperate publicity stunts. Telling the difference requires looking beyond the headlines.

VanEck, a major investment firm, recently warned that many companies aren’t properly managing the risks that come with holding volatile digital assets.

The rapid growth in corporate crypto adoption shows this trend will continue. But investors need to be smart about which companies are making genuine strategic moves versus those just trying to create buzz around their struggling stocks.