The value of MicroStrategy's massive Bitcoin (BTC) holdings has surpassed what most S&P 500 companies hold in their greenbacks treasuries.

The Nasdaq-listed enterprise software firm purchased an additional 5,050 Bitcoin for almost $242.ix 1000000, raising the value of its 114,042 BTC holdings to nearly $5.three billion. That comes out to exist higher than what 80% of non-fiscal S&P 500 companies hold in their greenbacks coffers, equally per information compiled by Bloomberg.

Cash spending upwardly among corporations

MicroStrategy made buying Bitcoin its official corporate strategy in 2022, with its celebrated CEO, Michael Saylor, calling the move a defence force against the U.S. dollar's potential devaluation. Companies like Tesla and Square later copied the strategy to supersede a portion of cash reserves with Bitcoin.

On the other hand, firms with lower risk appetites connected to increment their cash holdings. For case, in the second quarter, non-financial companies on the Southward&P 500 boosted their treasuries by 12% from a year ago due to escalating dubiousness caused past the COVID-19 pandemic.

Cash holdings by non-financial South&P 500 companies in recent quarters. Source: Bloomberg

Some of those firms — including General Electric, Ford and Boeing — started spending the cash during the ongoing third quarter. For instance, in July, non-financial S&P 500 companies slashed their dollar reserves by $30 billion, or 2%, from a year ago.

At the aforementioned time, companies like Amazon and Alphabet (Google's parent company) were still amassing cash but did fiddling to alter overall dollar spending. The total cash stockpiles held by United States corporations roughshod to $1.52 trillion from $1.55 trillion as they acquired new businesses, bought back shares and increased dividends, Bloomberg data reveals.

Overall, the declining cash holding trend shows that publicly traded companies take get more comfy with spending their coin, led by expectations that the COVID-19 pandemic is about over.

MSTR gives de facto Bitcoin exposure

Shares of MicroStrategy accept surged by almost 359% in the past 12 months, in lockstep with Bitcoin, whose value has surged by 314% in the same catamenia.

Since MSTR appreciation has outpaced Bitcoin's price growth, some analysts believe that owning shares gives investors easier exposure to the criterion cryptocurrency marketplace through traditional infrastructure.

MicroStrategy vs. Bitcoin vs. Nasdaq. Source: Ecoinometrics

"It'due south no secret that MSTR is being valued above the NAV [net asset value] of coins currently owned, and I don't think investors are buying information technology for the legacy business concern upside," said annotator Kingdom Capital.

"The [clearest] reason I can see is it is one of the few companies with a large marketplace capitalization in the BTC space."

For case, the Amplify Transformational Data Sharing ETF, which manages $1.2 billion worth of investments, has gained 6.5% exposure in MSTR after snubbing Grayscale Bitcoin Trust, the leading Bitcoin investment vehicle in the U.S. that trades over-the-counter, which restricts it from receiving capital from certain funds and substitution-traded funds.

Similarly, the Siren Nasdaq NexGen Economy ETF has exposure to MSTR but holds no GBTC.

Related: MicroStrategy stock flips bullish with MSTR a Bitcoin 'proxy' for institutional investors

As a outcome, MicroStrategy stock and Bitcoin prices are expected to trend in sync, unless more crypto stocks get available. Kingdom Capital weighed in:

"In that location announced to exist better vehicles available to investors for BTC equities, and equally they become more widely accessible I look some ETFs will reduce their MSTR exposure."

The views and opinions expressed here are solely those of the author and do non necessarily reflect the views of Cointelegraph. Every investment and trading motility involves risk, and you should conduct your own inquiry when making a decision.