Fathom Holdings Joins the Bitcoin Rush: A New Trend for Public Companies

Fathom Holdings Embraces Bitcoin

Another Nasdaq-listed company is adopting the increasingly fashionable Bitcoin standard. Real estate tech company Fathom Holdings (NASDAQ: FTHM) announced Thursday that it will allocate up to half of its excess cash reserves to the orange coin after the firm’s board approved the move.

Moreover, the company hopes to accept Bitcoin from customers for purchases in the future. They plan to start buying Bitcoin—and potentially via Bitcoin exchange-traded funds (ETFs)—in the next two weeks.

Fathom's CFO Joanne Zach stated: “The integration of Bitcoin into commercial and financial strategies has accelerated across financial markets, positioning it as both a hedge against inflation and a safeguard against economic and currency risks in the global economy.”

Fathom is a real estate firm that also dabbles in cloud computing services. It isn’t the first company to put Bitcoin on its balance sheet; over the past year, many small Nasdaq-listed companies have started following in the footsteps of MicroStrategy.

MicroStrategy first bought Bitcoin in 2020 and now holds over $47 billion worth, making it the largest corporate treasury holder of the asset. The firm has been urging companies to follow in its footsteps as its market cap has grown exponentially.

The Rise of Bitcoin Adoption

The company’s shares have exploded in value, and MicroStrategy last year became a Nasdaq-100 firm, joining the top 100 non-financial companies on the Nasdaq stock market. With Bitcoin hitting new highs and the buying process being simplified via new ETFs, more companies are following suit.

Health care companies like Semler Scientific and Cosmos Health, along with auto firm Worksport, are among the firms that have bought the asset as an inflation hedge.

Fathom's stock rose about 5% from the close of trading Wednesday—ahead of the announcement—to Friday's close, at a price of $1.39.