What impact will Bitcoin price fluctuations have on listed companies? Longlian Technology - Blockchain software development company. a team of 100 people develops more than 500 per year. with a large number of cases and mature models. blockchain incubation. welcome to consult V: lishun6093
What impact will Bitcoin price fluctuations have on listed companies? The impact of Bitcoin price fluctuations on listed companies is mainly reflected in the following aspects: 1. Financial status: The balance sheet of listed companies holding Bitcoin will be directly affected. When the price of Bitcoin rises, the value of Bitcoin held by the company increases, which will increase the asset value and net profit; falling prices will lead to asset impairment and lead to losses. For example, when Boya Interactive fell to US$83,000 in March 2025, the company's digital assets did not achieve a fair value loss of approximately HK$315.6 million, directly resulting in a net loss attributable to shareholders of HK$224 million in the current period. MicroStrategy suffered an unrealized loss of US$5.91 billion in the first quarter of 2025 due to the decline in Bitcoin prices, and the company is expected to record a net loss. 2. Stock price performance: Bitcoin price fluctuations will affect investors' confidence and expectations for listed companies, and will be reflected in the stock price. Typically, rising Bitcoin prices will cause the stock price of companies holding Bitcoin to rise, and vice versa. For example, after MicroStrategy disclosed that its digital assets had a floating loss, its stock price fell by more than 12% at the beginning of the session. Boya Interactive's stock price rose against the trend in 2025 due to the floating profit expectations brought about by the upward trend in Bitcoin price. 3. Business strategy: Bitcoin price fluctuations may prompt listed companies to adjust their business strategies. When prices rise, companies may consider increasing their holdings of Bitcoin or increasing their investment in the cryptocurrency field; when prices fall, companies may choose to reduce their holdings of Bitcoin to reduce losses or adjust their business layout. For example, when the Bitcoin price rose sharply in 2024, Meitu cleared all Bitcoin, making a profit of about 570 million yuan, and said that it will focus more on core image and design product business in the future. 4. Mining business: For Bitcoin mining companies, such as Marathon Digital Holdings Inc and Riot Platforms, Inc, rising Bitcoin prices will increase mining income, increase company profits, and may also prompt companies to expand their mining scale; falling prices will compress profit margins, and may even cause some insufficiently competitive miners to stop mining, and companies need to adjust their mining strategies or reduce costs. Welcome to consult V:lishun6093 TG:@shkayle
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