The Rise of Bitcoin as a Reserve Asset in 2025

In 2025, companies increasingly utilize Bitcoin as a reserve asset, influencing the surge in Bitcoin-related stocks and bonds. Fund manager Lyn Alden identifies two primary reasons for this trend.

Reason 1: A Substitute for Investment-Restricted Funds

One significant reason is the restrictions faced by many investment funds, which limit them to stocks and bonds, prohibiting direct purchases of Bitcoin or crypto ETFs. To navigate this limitation, Bitcoin-holding companies like MicroStrategy (MSTR) offer a viable alternative for funds seeking Bitcoin exposure.

Alden presents a comparison of performances:
– MSTR: +2,850% (2021 to mid-2025)
– Bitcoin (BTC/USD): +816.3%
– SPY: +99.03%

This data suggests that MSTR outperformed traditional equities, providing indirect Bitcoin access for funds.

> “Many funds, due to mandates, can only own stocks or bonds with Bitcoin exposure; not ETFs or similar securities,” Lyn Alden explains.

Reason 2: The Advantage of Long-Term Bonds and Safer Leverage

The second reason is the flexibility for companies to issue long-term bonds, mitigating the margin call risks faced by hedge funds, especially during price drops in Bitcoin. Companies like MicroStrategy can utilize multi-year bonds, allowing them to maintain their Bitcoin holdings in volatile markets.

Alden emphasizes that long-term bonds are more resilient against volatility compared to leveraged ETFs, which face daily resets leading to adverse conditions during downturns.

Growing Interest in Digital Asset Treasury Stocks (DATs)

Alden notes an increased interest in companies adopting strategic crypto reserves. Pantera Capital reports that Digital Asset Treasury stocks (DATs) connect traditional finance with digital assets, offering familiar investment tools for greater returns than the underlying assets.

> “The game has changed after Coinbase got included in S&P 500. Every traditional finance portfolio manager is eager to add digital assets,” investor Nachi states.

Recent trends show crypto-focused companies like Coinbase outperforming major tokens, though this shift could threaten the crypto industry’s growth momentum.