In the rapidly evolving landscape of corporate finance, a curious trend has emerged: struggling firms are increasingly turning to crypto reserves, specifically Bitcoin (BTC) and Binance Coin (BNB), as part of their treasury strategies. While some analysts view this as a legitimate move towards diversification and accessing new investor pools, others are skeptical, suggesting that these firms might be using crypto as a short-term public relations boost or a "reputational lifeline".
The first half of 2025 witnessed a significant surge in corporate adoption of crypto, with the number of listed firms holding Bitcoin nearly doubling. According to a report by K33 Research, the number of companies with Bitcoin on their balance sheets climbed from 70 in December 2024 to 134 by June 2025, amassing a total of 244,991 BTC. This trend has drawn parallels to earlier waves of corporate gold adoption, with companies seeking to provide investors with access to an underlying asset.
However, this enthusiasm is tempered by concerns that some firms, particularly those facing financial difficulties, may be leveraging crypto to create buzz and attract investors rather than implementing a sound financial strategy. Mike Foy, CFO at AMINA Bank, acknowledged the temptation for struggling firms to use digital assets as a reputational tool. He emphasized that the sustainability of this trend hinges on market specifics and regulatory environments.
The case of Windtree Therapeutics, a biotech firm, serves as a cautionary tale. In July 2025, the company announced a $60 million purchase agreement to begin its BNB treasury plan, followed by a $500 million equity line of credit and a $20 million stock-purchase pact to expand its holdings. While the announcement initially boosted the company's stock, shares have since plummeted by over 90% from their peak, leading to Nasdaq delisting. Windtree's failure stemmed from a mix of operational abandonment and speculative overreach, halting a core R&D project to fund BNB purchases. This contrasts sharply with MicroStrategy (now Strategy Inc), which has seen its stock surge by 3,900% since adopting a Bitcoin treasury strategy in August 2020, while maintaining a profitable software business.
To distinguish between genuine strategic moves and mere PR stunts, Foy suggests scrutinizing management's behavior and expertise in handling crypto assets. Red flags include high leverage, lack of crypto custody experience, and unusual insider stock activity. It's also important to examine whether the company is diverting resources from core operations to fund crypto purchases.
For example, BitMine Immersion Technologies, a company focused on ETH, announced crypto holdings exceeding $6.612 billion as of August 17, 2025, comprised primarily of 1,523,373 ETH. The company's chairman, Thomas Lee, highlighted the support from institutional investors and the company's goal of acquiring 5% of ETH. While BitMine's strategy appears to be well-supported, it underscores the importance of assessing each company's individual circumstances and long-term vision.
The use of crypto as a PR lifeline also raises concerns about potential risks to investors. Companies that continually buy more crypto to maintain a premium on their stock may face significant losses if cryptocurrency prices crash. Regulatory scrutiny is also increasing, with the IRS set to begin tracking cryptocurrency transactions and the Financial Accounting Standards Board (FASB) requiring companies to report the fair value of cryptocurrencies on their balance sheets.
Ultimately, while corporate adoption of crypto treasuries can be a legitimate strategy for diversification and attracting investors, it's crucial to distinguish between companies with a clear long-term vision and those simply seeking a short-term PR boost. Investors should prioritize operational fundamentals, transparent disclosures, and sustainable capital structures over speculative crypto pivots. A crypto pivot is not a lifeline if it replaces a heartbeat.
