As Bitcoin’s value continues to rise, companies across various sectors are eager to follow MicroStrategy’s lead and add the cryptocurrency to their balance sheets. But will these firms enjoy the same success, or is this just another market fad?

In the past month, Bitcoin has seen a meteoric rise, prompting more than a dozen companies to announce plans to add Bitcoin to their reserves. This growing trend comes after MicroStrategy, under CEO Michael Saylor, made headlines by converting a significant portion of its treasury into Bitcoin, starting in 2020. Since then, MicroStrategy has grown its Bitcoin holdings to an eye-watering $38 billion, helping its stock price soar by more than 30 times.

This success has sparked copycat behavior among other firms. For example, biotech company Anixa Biosciences announced it would add Bitcoin to its treasury reserves, which led to a 19% spike in its stock. Similarly, fitness company Interactive Strength revealed plans to purchase $5 million in Bitcoin, resulting in a brief surge in stock prices. Other companies, such as Hoth Therapeutics and Cosmos Health, have followed suit, seeing their stock prices jump momentarily following similar announcements.

However, not all of these companies are seeing long-term success. Many of these stocks have faded from their highs shortly after the initial announcement, raising questions about whether this trend is sustainable. Analysts, like Youwei Yang, Chief Economist at BIT Mining, suggest that this trend could follow a similar pattern to past market fads—initial hype followed by a sharp correction. While some companies have followed through with Bitcoin purchases, such as Genius Group, most are still in the announcement phase, leaving investors to wonder whether these plans will materialize into real assets.

In some ways, the rush to buy Bitcoin echoes the “blockchain” trend of the late 2010s, where companies quickly rebranded themselves to capitalize on the crypto craze. This led to a temporary surge in stock prices, but many of those gains were short-lived. Similarly, during the 2021 bull market, many companies attempted to tie themselves to the crypto space through Web3, NFTs, and the metaverse—again, often to no lasting effect.

While MicroStrategy has been successful in raising capital through stock and debt offerings to fund its Bitcoin purchases, the approach may not be as effective for smaller companies. Some analysts have cautioned that, for microcap companies, the Bitcoin buying trend could be viewed as a short-term gimmick, which could deter serious investors. David Siemer, CEO of Wave Digital Assets, also pointed out the risks involved, noting that leverage in Bitcoin investments could amplify losses if the market turns against them.

The push by companies to invest in Bitcoin is continuing, with some hoping that the rise of the cryptocurrency is indicative of broader mainstream adoption. If Bitcoin’s value continues to climb and governments, including the U.S. under President-elect Trump, warm to the idea of adding Bitcoin to their reserves, we could see even more companies jumping on the bandwagon.

But for now, it remains to be seen whether these “Bitcoin copycats” will sustain their momentum or if this trend will fizzle out like previous crypto-driven market fads. Only time will tell.