Corporate Bitcoin Treasury Adoption Milestone

Corporate Bitcoin treasury adoption has hit a significant milestone, reaching 1 million Bitcoin as more companies emphasize Bitcoin’s potential to strengthen their balance sheets.

BitcoinTreasuries.NET confirmed this achievement on Thursday, with additional purchases bringing the total to 1,000,698 Bitcoin, valued at over $111 billion.

While Bitcoin miners like MARA Holdings were the original Bitcoin accumulators, Michael Saylor’s Strategy was the first public company to adopt a Bitcoin (BTC) strategy in August 2020, paving the way for many of the 184 listed companies holding Bitcoin today.

Saylor’s company holds the most Bitcoin at 636,505 BTC, while MARA Holdings maintains the second position with 52,477 BTC, having mined 705 BTC in August.

New Bitcoin treasury companies are emerging, including Jack Mallers-led XXI and Bitcoin Standard Treasury Company, which now hold 43,514 BTC and 30,021 BTC, respectively.

Other notable holders include crypto exchange Bullish at 24,000 BTC and Japanese investment firm Metaplanet at 20,000 BTC, with Riot Platforms, Trump Media & Technology Group Corp, CleanSpark, and Coinbase rounding out the top 10.

The rapid Bitcoin accumulation by public companies and exchange-traded funds has created a demand shock this cycle, which many view as a primary catalyst behind Bitcoin’s recent price rally to an all-time high of $124,450 last month.

More publicly listed companies announce Bitcoin accumulation strategies weekly. With just 5.2% of Bitcoin’s fixed supply left to enter circulation, further adoption could spark a supply-side shock in the coming years.

For instance, Metaplanet and Semler Scientific aim to accumulate 210,000 BTC and 105,000 BTC by the end of 2027, respectively—over ten and twenty times their current holdings.

Bitcoin Treasury Strategies Criticized in Bear Market

Strategy was one of the few Bitcoin-accumulating companies that stood firm during the 2022 bear market, which saw Bitcoin miners offload 58,770 BTC—up from 3,500 BTC the previous year—while the collapse of FTX pushed Bitcoin down to a low of $15,740.

Saylor stated he was willing to endure Bitcoin’s drop to $0, facing skepticism about the sustainability of his company’s “wild experiment.” However, Strategy’s resilience likely inspired a new wave of Bitcoin adoption, including from Metaplanet and Semler Scientific, whose CEOs admitted they were “zombie companies” before deciding to invest in Bitcoin.

Wall Street Tools Support Corporate Bitcoin Adoption

Like Strategy, many of these companies have adopted various financial instruments, such as equity offerings and debt financing (through senior convertible notes), to boost their Bitcoin holdings and enhance shareholder value on a Bitcoin-per-share basis.

XXI and the Bitcoin Standard Treasury Company were established as Special Purpose Acquisition Companies (SPACs) to build Bitcoin treasuries and provide investors with a quicker, more flexible route to Bitcoin exposure than through traditional initial public offerings (IPOs).

Corporate Bitcoin adoption is global, with 64 companies based in the US, 34 in Canada, 11 in the UK and Hong Kong, along with others in Mexico, South Africa, and Bahrain.

Public Companies vs. Other Bitcoin Holders

Public companies are not the largest holders of Bitcoin; crypto exchanges and exchange-traded fund issuers control more, totaling 1.62 million BTC. Meanwhile, governments and private companies hold 526,363 BTC and 295,015 BTC, respectively. An additional 242,866 BTC is locked in crypto protocols, leaving 16.2 million BTC in the hands of individuals—assuming they still have access to their private keys.

Source: BitcoinTreasuries.NET