Fathom Holdings, a NASDAQ-listed real estate technology firm under the ticker FTHM, announced on January 25, 2025, that it will institute a Bitcoin reserve strategy where it will invest up to 50% of its excess cash reserves in Bitcoin. The board-approved move speaks for itself as a clear testimony to a trend wherein public companies embrace cryptocurrency as part of their financial strategy.
Bitcoin Reserve Strategy
Fathom Holdings will start buying Bitcoin in the next few weeks. It is also likely to take into account the purchase of Bitcoin via exchange-traded funds (ETFs). Joanne Zach, CFO, said adding Bitcoin to commercial and financial planning was a priority, adding that the digital currency works as a hedge against inflation, apart from protection against the global economic exposure of the firm’s currency.
The move brings Fathom into line with other companies that have recently taken a stake in Bitcoin. Most notably, software firm MicroStrategy blazed the trail in 2020 when it bought Bitcoin, accumulating more than $47 billion worth. Many smaller Nasdaq-listed companies have followed suit, including healthcare firms like Semler Scientific and Cosmos Health.
Market Reaction
Immediately following the news, shares of Fathom were up about 5% to close at $1.39. The rising interest in Bitcoin from all walks of the industry is taking hold little by little as more and more companies begin to realize the potential benefits. The current price of Bitcoin is $104,696, down 0.91%.
This is not a trend limited to Fathom. Other companies have started holding Bitcoin as a reserve asset, and the ease of buying Bitcoin via ETFs has made it more accessible for companies wanting diversification in their financial strategy.
Broader Implications
Fathom’s investment in Bitcoin reflects a big change in how companies view cryptocurrency. As Bitcoin makes new highs and adoption goes mainstream, more firms are likely to follow the lead of Fathom. The integration of Bitcoin into corporate treasury management could change financial practices across a wide array of industries.
If this trend catches on with other firms, it could have broad implications for financial markets. Increased investment in Bitcoin means that it is only going to see more stability and liquidity, further cementing its place as an asset class.
