How do publicly traded companies utilize Crypto Assets reserve strategies?

Publicly traded companies are increasingly adopting cryptocurrency reserve strategies, allocating a portion of corporate capital to cryptocurrencies. In the 12 months ending June 2025, these companies injected over $40 billion into digital assets. At least 14 publicly traded companies have publicly adopted this strategy, with a total value of cryptocurrency holdings exceeding $76 billion.

The following is an overview of DWF Ventures' cryptocurrency reserve strategies and well-known companies that adopt these strategies.

##What is a cryptocurrency reserve strategy? The cryptocurrency reserve strategy involves a company (usually one outside the traditional digital asset industry) acquiring and holding cryptocurrencies as part of its corporate reserve funds. These companies no longer keep all idle funds in traditional assets (such as fiat currency or bonds), but instead allocate a portion of their balance sheet to digital assets like Bitcoin. Goals may include asset diversification, hedging against inflation risks, potential gains, or supporting cryptocurrency-centric business models. In several recent cases, after companies announced cryptocurrency reserve plans, their stock prices tended to rise significantly, indicating positive feedback from the stock market.

Overview of cryptocurrency reserve strategies. Source: DWF Ventures

How Companies Fund Their Cryptocurrency Reserves

Launching a cryptocurrency reserve strategy typically requires a significant amount of capital, and publicly traded companies have employed various methods to raise or allocate funds for this purpose. Common sources and mechanisms of funding include:

• Public company private investment (PIPE): Private placement of new shares or other equity instruments of the company to external investors, providing instant funds that can be used to purchase cryptocurrencies. Institutional investors typically arrange PIPE transactions at negotiated prices.
• Market Instant (ATM) Stock Sale: Gradually selling new shares to the public market through the ATM plan. This type of arrangement allows the company to raise funds over time at the current market price, which can then be used for cryptocurrency purchases.
• Credit line or loan: Use debt financing, such as bank credit lines or issuing bonds, to obtain cash for acquiring digital assets. Companies with strong balance sheets may obtain loans specifically for cryptocurrency investments.
• Reverse mergers or SPAC transactions: Merging with or being acquired by an already listed entity can inject capital or create a new publicly traded instrument that holds cryptocurrency. Sometimes the merger itself includes raising new equity for cryptocurrency reserves.
• Existing cash reserves: Simply using the cash or cash equivalents already on the balance sheet to purchase cryptocurrencies. This direct approach is employed by companies that are cash-rich and seeking exposure to cryptocurrencies without external financing.
• Convertible notes and other instruments: Issuing convertible promissory notes or bonds (often zero-coupon), which can later be converted into equity, may be an attractive way to borrow money for the purchase of cryptocurrency. Other innovative instruments or combinations, such as warrants or preferred stock, are also used to tailor financing for reserve strategies.

In recent transactions, a particularly popular method is to combine PIPE investments with convertible notes. This structure provides companies with a significant amount of upfront capital while offering investors the option to convert debt into equity when the company performs well. It is widely used in cryptocurrency reserve financing rounds. In 2025, Trump Media & Technology Group and GameStop Corp. both announced large-scale financing plans using this model to support planned Bitcoin purchases.

Blockchain infrastructure company Nano Labs Ltd. announced a $500 million plan in June to issue zero-coupon convertible notes to fund the Binance Coin (BNB) reserves.

Another case is the fitness equipment manufacturer Interactive Strength listed on Nasdaq (TRNR), which announced a structured financing arrangement of $500 million in June 2025 to acquire Fetch.ai (FET) tokens. The first tranche of $55 million was completed through a PIPE deal co-led by us and ATW Partners, and the overall financing plan includes the issuance of convertible notes, ultimately allowing the company to establish the largest corporate AI token reserve in the world.

Case Study: TRON's Reverse Merger Strategy

A notable example of a non-traditional path to establishing cryptocurrency reserves is the reverse merger of TRON DAO. In mid-2025, the TRON blockchain platform chose to go public in the U.S. through a merger with a Nasdaq-listed company rather than pursuing a traditional IPO. The target was a small company, SRM Entertainment (SRM), which agreed to rebrand as "TRON Inc." and serve as the vehicle for TRON's entry into the public market. As part of the deal, SRM/TRON Inc. secured a $100 million equity investment from private investors associated with TRON founder Justin Sun, specifically to fund TRON (TRX) token reserves. Overall, the deal allowed for up to $210 million to be deployed into TRX tokens through a combination of preferred stock and warrant financing, establishing significant on-chain reserves for the new public entity.

This move effectively transforms SRM into a blockchain holding company with a large reserve of cryptocurrencies. TRON founder Justin Sun joins as an advisor and supports this strategy. TRON blockchain platform founder Justin Sun. Source: Financial Times

##Bitcoin: The Most Preferred Corporate Crypto Asset

Not surprisingly, Bitcoin (BTC) has always been the main choice for most companies entering the cryptocurrency space. MicroStrategy/Strategy (MSTR) is a pioneer in this field, converting nearly all of its idle treasury bonds into Bitcoin since 2020. As mentioned, by mid-2025, it had accumulated over 580,000 BTC, primarily financed through multiple rounds of convertible bonds and stock issuances. The success of this bold bet has set a typical example that many aspire to follow.

In May and June of 2025, several companies announced significant Bitcoin acquisitions or plans. For example, Trump Media Technology Group raised $2.5 billion in new funding in May 2025, with a clear goal of using it to purchase Bitcoin for its reserves. Similarly, GameStop announced that it would allocate part of its reserves to Bitcoin. These companies typically use the financing methods described earlier to raise capital and then convert it into BTC holdings.

Although some companies are raising new funds to purchase cryptocurrency, others are simply redeploying existing capital. Tesla, Inc. purchased $1.5 billion in Bitcoin from its corporate cash at the beginning of 2021, becoming one of the first Fortune 500 companies to do so. Smaller companies have also taken similar actions: Nasdaq-listed healthcare company Semler Scientific purchased about $20 million in BTC for its reserves, and Japanese gaming company Nexon invested $100 million in Bitcoin in 2021. These companies view Bitcoin as a strategic asset at hand, much like investing in securities.

##The Rise of Ethereum and Altcoin Reserves Although Bitcoin remains dominant, recent developments indicate that companies are increasingly interested in holding reserves of other cryptocurrencies. In the past few weeks leading up to June 26, several companies have made headlines by pursuing non-Bitcoin reserve assets, reflecting a broader acceptance of diversified crypto assets in corporate strategies. For example, SOL Strategies Inc. submitted a prospectus to raise up to $1 billion for the acquisition of Solana (SOL) tokens. Another case, as mentioned, is Nano Labs Ltd., which has made Binance Coin (BNB) its primary reserve asset through a $500 million convertible note deal. Similarly, Nasdaq-listed fintech company Lion Group Holding (LGHL) announced plans to establish a $600 million altcoin reserve. Core holdings include Hyperliquid (HYPE), a relatively new Layer-1 token, alongside additional reserves in Solana and Sui.

At the same time, consumer goods company Upexi Inc. launched a reserve specifically for Solana (SOL) at the end of 2024, with executives noting that this is a strategy to attract cryptocurrency investors' attention and participation in Solana's growth.

The common point of altcoins such as SOL, BNB, HYPE, Fetch.ai (FET), TRON (TRX), Sui (SUI), etc., is that they are seen as platforms or networks that have active communities and potential upside beyond the narrative of Bitcoin as digital gold. With the development of the cryptocurrency market, we may see a more diversified range of assets that companies choose to hold, from stablecoins to tokens that align with their operational ecosystems.

##Summary As mentioned earlier, we jointly led the initial $55 million investment in Interactive Strength's Fetch.ai token program, and we will continue to explore new opportunities to build similar trades within the U.S. stock market.

In addition to capital, we also bring technical expertise and strategic guidance to help companies navigate the complexities of cryptocurrency adoption.