Bitcoin Treasury Buying Outpaces Supply: A 3-to-1 Advantage

Over the last six months, corporate digital asset treasuries (DATs) have been a major buyer of Bitcoin, adding a net total of 260,000 BTC to their coffers. This figure dwarfs the estimated 82,000 coins mined within the timeframe, suggesting a sharp rise in the use of Bitcoin as a corporate treasury asset.

Corporate Bitcoin Holdings Soar

Glassnode has reported that public and private companies’ Bitcoin crypto treasuries have jumped from roughly 854,000 BTC to 1.11 million BTC, or a 30% increase in just six months.

https://twitter.com/glassnode/status/2011162019441893480

The gain is equivalent to some $25 billion at today’s prices, and Strategy, under the leadership of Michael Saylor, controls most of the BTCs with 687,410 BTC, which is approximately $65.5 billion.

Also Read: Strategy Rallies 6% as MSCI Confirms Inclusion Path for Crypto Treasury Firms

Supply, Demand Dynamics

The increase in corporate BTC holdings is greater than the production of BTC, as miners have only been able to produce about 82,000 coins during the period. The excess of demand over supply could create a positive demand-supply situation, which might result in an increase in the price of BTC. With 53,250 BTC or around $5 billion, MARA Holdings is ranked as the second-largest corporate BTC holder.

Source: Serrari Group

Also Read: Malaysia’s Crown Prince Launches New Stablecoin and Major Crypto Treasury Plan

Conclusion

Spot BTC exchange-traded funds (ETFs) have the potential to significantly boost this trend. Bitwise’s chief investment officer, Matt Hougan, has even gone as far as to say that the price of BTC could rise sharply in a “parabolic” fashion if demand from ETFs is sustained over time.

https://twitter.com/Matt_Hougan/status/2011083320466231619

The continuous accumulation of BTC by companies will likely result in supply, demand dynamics that are favorable for price increase.

Also Read: Hong Kong SFC Raises Alarm on Crypto Treasury Firms Amid Rising Investor Risk