Historical milestone has just been achieved. Public companies already keep over 1 million BTC, which is more than 5% of the entire supply of the most important cryptocurrency on the market. This is not a random number, but a symbol of the corporate revolution that is just taking place before our eyes. What will happen next?
When the corpo discovered BTC
On Thursday, the data from Bitcointreasuries confirmed what the analysts have been anticipated for months – the collective state of Bitcoin’s possession by public companies exceeded the magical limit of a million coins. It is about USD 111 billion frozen in digital gold by institutions, which just a few years ago looked at cryptocurrencies with a mixture of fear and contempt.
It is worth recalling the claims of Larry Fink (CEO Blackrock), who only publicly claimed that cryptocurrencies with BTC at the forefront, serve only criminals. His opinion has changed by 180 °, while Blackrock is one of the largest players when it comes to ETF funds based on Sathi Nakamoto’s cryptocurrency.
Well, but how did the corporations start looking at Bitcoin with a more favorable eye? It all began with Michael Saylor and his microstrategy (currently Strategy) – a visionary who first understood that keeping cash was slow suicide in the era of printing money.
Saylor has become a pioneer of investing in BTC, inspiring dozens of other companies to adopt a similar strategy. One of the inspired entrepreneurs was Elon Musk, whose Tesla also keeps her capital in Bitcoin.
Domino effect in full bloom
Today, over 100 public companies have BTC in their balances. This is no longer a marginal Society of Krypto-Manags, but a clean, corporate mainstream. In this group we will find:
- Bitcoin minerals like Mara Holdings, who naturally gather what they bring out
- Technology companies like strategy that treat BTC as a reserve of values
- Big playerssuch as Gamestop or Metaplanet, which decided to diversify their assets
- Companies from the medical sector like semler scientific
The latest example is the CIMG company listed on NASDAQ, which on Tuesday announced the acquisition of USD 55 million for the purchase of Bitcoin. This shows that the trend not only persists, but even gains pace.
5% is just the beginning
To understand the scale of this phenomenon, just look at the numbers. One million BTC is over 5% of the entire supply, which is about 19.8 million coins. For comparison, the total bitcoin supply is limited to 21 million – each coin in the hands of corporations is less available BTC on the market. In a statement for TheBlock.co, Pete Rizzo, president of Bitcointreasuries, emphasizes the key observation:
Despite today’s milestone, a number of indicators suggest that Bitcoin’s institutional adoption is still in its infancy
Most of the main companies from Bitcoin Treasury Strategies are just beginning to implement long -term accumulation strategies, which means that a significant part of the acquired capital has not yet been invested.
It sounds like an announcement of another wave of shopping. When we look at the success of Strategy (both in terms of the increase in stock price and the values of the accumulated BTC), it is not surprising that more companies want to repeat this success.
What happens when 50,000 companies discover BTC?
Rizzo has one more provocative vision:
We expect that the number of public buyers and holding Bitcoin companies will grow, and assets will become a larger part of the balance sheets of over 50,000 listed companies in the world
50,000 companies. Today we have just over 100. Even if the fraction of this number decides to Bitcoin Treasury Strategy, we are talking about a potentially huge wave of demand for limited supply.
Time to act, not for consideration
The price of BTC is today above 112,117 USD, and its increase during the year exceeded 99%. This is why corporations no longer look at cryptocurrencies as a speculative experiment, but at a new asset class that has proved its value in practice. A very important factor driving BTC corporate hunger is the fact that more and more countries are considering reserve in cryptocurrencies, the best example of which is the USA.
For companies that are still thinking about the corporate entrance to Bitcoin, time can end. Each day of delay is a potentially higher entry price and less access to limited supply. History shows that those who act early gain the most (greetings to Hodler from 2010 😀).
One million bitcoins in the hands of public companies is not the end, it is just the beginning of the new era of corporate finances.
