- Dozens of firms have followed Michael Saylor's Strategy and added Bitcoin to their balance sheets.
- Recent copycats haven't been so lucky.
- DL News looks at the top five firms underwater on their Bitcoin buys.
For Michael Saylor, piling into Bitcoin worked.
The chair and co-founder of Strategy got in early, buying up the asset since 2020 and sitting on about $9 billion in gains.
Others that piled into Bitcoin years ago, such as Tesla, Jack Dorsey’s Block and Japan’s Nexon, are also sitting on healthy returns.
But newcomers trying to mimic Saylor’s tactic — which he says helps protect from currency debasement and acts as a hedge against inflation — haven’t been so lucky.
Bitcoin has seen wild price swings this month as investors fret about US President Donald Trump’s flip-flopping policies and the broader US economy.
The price is down about 25% from its all-time high.
Strategy employs a somewhat complex debt and equity toggling mechanism to protect against price fluctuations — something some other firms holding Bitcoin aren’t replicating.
Here are five companies that are losing money on their Bitcoin investments.
Rumble
Video-sharing platform Rumble is the most recent firm to snag some Bitcoin, announcing the acquisition of more than $17 million worth of the asset on March 12.
Yet the firm’s purchase price of $91,000 per Bitcoin means that its investment is already down around 9%.
Rumble’s Bitcoin holdings are relatively minor, at just 0.6% of its $2.3 billion market capitalisation.
The firm says it is diversifying its treasury with Bitcoin to protect against “dilution through endless money-printing.”
And Rumble’s Bitcoin buying may not be over. The firm’s board of directors approved purchases up to $20 million in November.
Rumble did not immediately respond to a request for comment.
Ming Shing Group
Hong Kong-based Ming Shing Group is an unlikely firm to be buying up Bitcoin.
It’s a small investment holding company engaged in the provision of trades services like plastering, tile laying, and brick laying.
Yet in recent months the firm has scooped up $69 million worth of Bitcoin through a subsidiary — that’s almost as much as the firm’s $74 million market capitalisation.
Director Wenjin Li said the firm bought Bitcoin to boost its asset growth and create additional value for shareholders.
However, the firm’s Bitcoin buys came at an average cost of $89,250, meaning its position is currently around 7% underwater.
Ming Shing Group did not immediately respond to a request for comment.
Semler Scientific
Semler Scientific started off as a firm engaged in the early detection and treatment of chronic diseases.
In May 2024, it started funnelling its cash reserves into Bitcoin.
Like Saylor’s Strategy, the firm has issued more shares in order to buy up more Bitcoin, a move it says is “highly accretive” to stockholders.
However, recent large purchases have pushed up costs.
Semler Scientific’s average purchase price now sits at $87,850, about 5% higher than Bitcoin’s current price.
The $265 million worth of Bitcoin on the firm’s books comes in at a whopping 82% of its market capitalisation.
Semler Scientific did not immediately respond to a request for comment.
Nano Labs
Chinese chip designer Nano Labs is another firm going all in on crypto.
It has acquired $30 million worth of Bitcoin through a subsidiary, and in February sold $5.9 million worth of shares satisfied in Bitcoin and Tether stablecoin USDT, per a press release.
It’s not just Bitcoin Nano Labs has been buying. On January 21, the firm announced that it had bought 47 of President Donald Trump’s memecoin.
Nano Labs said the symbolic purchase, which cost it a little over $1,100, celebrates Trump’s election and reflects the firm’s appreciation for his supportive stance toward the cryptocurrency industry.
Nano Labs’ Bitcoin buys aren’t doing so well, however. Its average purchase price of $99,700 puts its holdings 16% above current prices, the widest negative return on the list.
The firm’s Bitcoin holdings come in at 35% of its market capitalisation.
Nano Labs did not immediately respond to a request for comment.
Genius Group
Singapore-based Genius Group calls itself a Bitcoin Treasury Company, with the goal of accumulating 1,000 Bitcoin by the end of the year.
Genius Group says it wants to replicate the success of firms like Strategy and Metaplanet by buying Bitcoin and potentially issuing debt and shares to buy even more.
So far, the firm holds 440 Bitcoin, worth a little more than $36 million.
However, the firm’s average purchase price of $95,455 puts its holdings 13% underwater.
Still, Genius Group boasts that the value of its held Bitcoin is higher than its market capitalisation on a per-share basis.
The firm Bitcoin holdings are worth 158% of its $23 million market capitalisation.
Genius Group did not immediately respond to a request for comment.
Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.