Companies Rush to Buy Bitcoin, But Some May Be Using Crypto as Desperate Marketing Ploy
The post Companies Rush to Buy Bitcoin, But Some May Be Using Crypto as Desperate Marketing Ploy appeared on BitcoinEthereumNews.com.
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…
Filed under: News - @ August 24, 2025 6:25 pm