As more companies buy Bitcoin: what happens in case of a pullback?

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Last Updated on 9 August 2025 by CryptoTips.eu

Just like in 2008, when it emerged that a very large number of banks worldwide had bought CDOs (collateral debt bonds), most of which turned out to be worthless, and in 1998, when several companies had decided to invest in the “internet,” traditional analysts are now suspicious of the great number of companies using part of their cash reserves to buy Bitcoin. And this despite the fact that these companies have nothing to do with crypto.

According to the latest data, approximately 154 publicly traded companies worldwide bought Bitcoin this year. Currently, most of them are looking at a profit, but what happens if we see a 20 or 30% pullback?

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Dotcom

Between 2020 and the end of 2024, Bitcoin was purchased by some 10 public companies. These all had something to do with crypto and digital currencies or were outspoken fans of it. These were companies like Microstrategy (currently called Strategy, Michael Saylor’s company that solely purchases Bitcoin as part of its business strategy) or Tesla (where Elon Musk was a big fan of Bitcoin and had previously instructed his CFO to use several billion dollars in reserves to purchase crypto). But that’s about where it ended.

After Trump won the US presidential election last year and embraced Bitcoin, this group grew much larger. Since the beginning of this year, around 154 companies listed on worldwide exchange have purchased Bitcoin. However, most of them did so because it’s currently trending, not because they have any real interest in crypto. Small companies in the United Kingdom, France, and even Japan have recently purchased Bitcoin to boost their own stock prices.

Lehman

The problem with this trend is that it’s too reminiscent of both the 1998 dot-com bubble (which burst in 2001, the so-called dotcom crisis) and the financial crisis that began in 2005 (and collapsed in 2008, with the demise of Lehman Brothers). Back then, too, companies jumped on the bandwagon of a “trend.” In 1998, everyone wanted to do something with “the internet,” which was all the rage at the time. In 2005, every bank worldwide wanted to own a CDO to emulate their larger American counterparts.

Note that in the long term, I still think Bitcoin’s price will rise, but as many of these smaller companies have never experienced Bitcoin pullbacks like those in 2019 (after the 2017-2018 Bitcoin bull run) nor in 2022 (after the 2020-2021 bull run), I’m worried about what would happen if we were to see another pullback in the fall. Could panic ensue?

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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