3 Stocks Using Bitcoin to Grow Their Treasury Reserves

Key Points

• Bitcoin is growing as part of a treasury strategy for many companies inspired by MicroStrategy.
• The mention of a Bitcoin investment has been able to pump up stock prices initially.
• A major coal mining company was able to use its spare prepaid electricity to mine over $30 million in Bitcoin.

Bitcoin has gained legitimacy as it has achieved mainstream status these days. Even the United States Securities and Exchange Commission (SEC) has acknowledged its legitimacy with the advent of spot Bitcoin exchanged traded funds (ETFs) like iShares Bitcoin Trust NASDAQ: IBIT issued by the world’s largest asset manager BlackRock Inc. NYSE: BLK. What was once viewed as a gimmick when MicroStrategy Inc. NASDAQ: MSTR went all-in on Bitcoin in 2020, aggressively replacing cash reserves with it and watching its stock soar 20x since then, is now viewed as an ingenious way to increase shareholder value and hedge against inflation.

From Meme Stock to Bitcoin

The meme stock mania of 2021 made the world's largest cinema operator, AMC Entertainment Holdings Inc. NYSE: AMC, a household name, right behind GameStop Co. NYSE: GME, of course. In fact, GameStop was initially reported by CNBC to be exploring investing in Bitcoin to enhance their balance sheet first, and then AMC became the next speculation.

Many more companies outside of the computer and technology sector are embracing the idea of replacing cash reserves with Bitcoin or just investing in it. Here are three companies holding Bitcoin to increase their treasury and shareholder value.

Alliance Resources: From Mining Coal to Bitcoin

Coal mining has gotten a bad rap from environmentalists to clean energy proponents. Yet, coal still makes up 9% of the nation’s total energy production. The writing has been on the wall for coal mining, which is why one major coal miner is diversifying by mining and investing in Bitcoin. Alliance Resource Partners L.P. NASDAQ: ARLP is the largest coal producer in the Eastern United States, operating seven underground coal mining complexes.

Alliance sells coal to utilities, steelmakers, and industrial companies to generate power and make steel. Alliance is diversified as it also collects royalties from oil and gas mineral interests in the Permian and Anadarko basins. They collect royalties from leasing these interests.

Spilling the Beans on Dabbling in Bitcoin

In their Q1 2024 conference call, Alliance disclosed that they had been dabbling in bitcoin mining as early as 2H 2020, finding a way to use their excess electricity at the River View mine in Kentucky. This is the power they already paid for but weren't actually tapping. By April 2024, the company had mined over $30 million worth of Bitcoin.

How Is Their Other Business Doing?

On February 3, 2025, Alliance reported EPS of 12 cents per share, missing consensus analyst estimates by 58 cents. Revenues fell 5.65% year-over-year (YoY) to $590.09 million, missing estimates by $45.51 million. For the full year 2024, Alliance reported revenue of $2.4 billion, net income of $360.9 million and adjusted EBITDA of $714.2 million. Oil and gas royalties volumes hit a record of 3.4 million barrels of oil equivalents (BOE), up 9.6% YoY. The company also completed $9.6 million in oil and gas interest acquisitions in Q4. Alliance held 482 Bitcoins on the balance sheet, valued at $45 million, at the end of 2024.

Alliance Issues 2025 Outlook

The company issued guidance for 2025. Alliance expects overall coal sales volumes between 32.25 million to 34.25 million tons, with more than 78% already committed and priced.

Sales pricing is projected to be between $50 to $53 per ton in the Illinois Basin and $76 to $82 per ton in Appalachia. 

However, the company expected costs per ton to deflate sequentially through the year.

Material improvements in production costs will offset lower realized pricing as capex is expected to fall significantly down $429 million from 2024. 

CEO Craft sees potential for higher domestic sales in 2025.

This LLP Pays a 10.5% Dividend Yield

The company declared a quarter cash distribution of 70 cents per unit and $2.80 per unit annualized. As a master limited partnership, they must distribute at least 90% of their cash flow to unit holders (shareholders). Alliance distributes cash quarterly under a payment schedule, which has an annual yield of 10.5% as of February 21, 2025.

Alliance disclosed its Bitcoin mining and investment activities four years after beginning operations, proving it wasn’t just following the trend. Meanwhile, some companies are only now investing in Bitcoin to boost their visibility and balance sheets.

Semler Scientific: From In-Office Blood Flow Tests to Bitcoin

Medtech company Semler Scientific Inc. NASDAQ: SMLR makes QuantaFlo PAD for peripheral artery disease patients to detect and monitor PAD.

Its QuantaFlo device uses sensors to quickly and accurately measure and analyze arterial blood flow using volume plethysmography.

Its on-screen instructions guide users through the testing process and analysis, producing results and actionable insights in three minutes.

Adopting a Bitcoin Treasury Strategy

In May 2024, Semler embraced Bitcoin as its primary treasury reserve asset. Semler believes that Bitcoin “is a reliable store of value and a compelling investment.” The company’s stock proceeded to soar from the $26 range in May of 2024 to a peak of $81.56 in December of 2024. CEO Eric Semler was inspired to undertake this Bitcoin strategy by MicroStrategy. Semler is also a big proponent of Bitcoin.

Bitcoin Update: Holding 3,192 Bitcoins at an Average Price of $87,854 Each

Semler provided an update on February 4, 2025, regarding its Bitcoin holdings. The company priced an $85 million offering of 4.25% convertible senior notes due 2030 for the purposes of investing in more Bitcoins.

Proceeds were used to purchase another 871 Bitcoins between January 11, 2025, to February 3, 2025, at an average purchase price of $101,616 per bitcoin inclusive of fees and expenses.

Semler points out the 107% Bitcoin yield produced since July 1, 2024, as the company holds 3,192 Bitcoins. The 3,192 Bitcoins were acquired for an aggregate of $280.4 million at an average purchase price of $87,854 per Bitcoin.

CEO Semler commented during its earnings call, “In addition, we have generated a positive bitcoin yield of 152% since the quarter after adopting our Bitcoin treasury strategy. According to bitcointreasuries.net, Semler Scientific is the tenth-largest corporate holder of Bitcoin. The company's market capitalization has grown by more than 200% since adopting Bitcoin nine months ago.”

MOGO: Canadian Fintech Mobile Trading and Payments App Authorizes Bitcoin

Digital fintech Mogo Inc. NASDAQ: MOGO develops and operates its mobile wealth platforms for a monthly membership fee.

Mogo is a self-directed investing app, and Moka is a private wealth manager app. 

Mogo Money provides online personal loans, serving mostly Canadians. It also has a digital payments solutions business, Carta Worldwide.

The illiquid penny stock company’s Board of Directors approved an initial investment of up to $5 million in Bitcoin and Bitcoin ETFs on March 7, 2024, that initially caused a surge to a $2.25 peak but has since lost its momentum, melting to $1.15 by February 21, 2025.

Q3 2024 Earnings Release, But No Specific Amount of Bitcoin Revealed

The company last reported a Q3 2024 EPS loss of 7 cents as revenues rose 8.28% YoY to $12.69 million. Mogo members increased to 2.17 million members by quarter end, up 4% YoY.

Its Carta Worldwide payment solutions business processed just under $3 billion in payment volume, up 23% YoY.

The company has $409 million in assets under management in its Wealth businesses, up 22% YoY. The company didn’t specify how much Bitcoin they have.

CFO Greg Feller commented, “Another major pillar to our business is our crypto-related investments, which include stakes in Crypto Exchange's WonderFi as well as U.S.-based Gemini, along with investments in Bitcoin and a number of other crypto-related companies. Collectively, our crypto-related investments at the end of the third quarter represented $0.58 per Mogo share. Or said another way, about 42% of our share value today represents crypto exposure for our shareholders.”