Public Companies Hold More Than $3.6 Billion Worth of BTC, a 400% Increase In 12 Months

A technology researcher known as Kevin Rooke has been tracing the amount of Bitcoin held by public companies in the past two years. According to his data, these companies now hold more than $3.6 billion worth of BTC.

Rooke shared a tweet with this data saying that public companies held fewer than 20,000 BTC last year, but this value has changed today, with 19 public companies holding 105,837 BTC. 

 

The biggest holder is MicroStrategy with 70,784 BTC followed by Galaxy Digital with 16,402 BTC. On the bottom of the list is BTCS Inc. with 63.65 BTC and Neptune Digital Assets with 57 BTC. The largest company by market cap among these is Square Inc. by roughly 4,700 BTC.

Reason for The Surge in Demand by Public Companies

Public companies alone have accumulated around 85,000 BTC in just one year, an equivalent of $2.67 billion. The trend indicates the rapidly growing institutional demand for BTC, as shown by increased trading activity on Grayscale and CME.

Grayscale’s products and CME Bitcoin futures market both mostly cater to institutions. They have recorded a massive uptick in volume since mid-2020.

Investors and corporations have been affected by the rising inflation and liquidity injections from central banks, hence the need to hedge their holdings and portfolios. According to Winklevoss, inflation robs people of their life’s work. In the past three years, the Argentine peso has lost 50% of its value against USD, which can explain the skyrocketing search interest in Bitcoin.

The Biden administration can create a more favorable environment for Bitcoin and gold to rally by putting in efforts to ease financial conditions and aggressively introducing more stimulus.

The Future of Bitcoin According to Analysts

Analysts are slightly cautious in the foreseeable future despite the compelling macro environment. Macro analysts claim to be leaning towards a bullish scenario for Bitcoin. According to Alex Kruger, an economist and Bitcoin trader, Bitcoin is stuck between the $29k-$35K range, and it can break either way.

In addition, there are expectations that more institutions will accumulate BTC in the coming weeks because the futures premium held through the last three dips and top traders buying the dip. Further, the derivatives market has reset with futures market becoming less crowded.

Kruger added more signs of a healthy cool down such as flat or negative funding and perpetuals trading below spot.

Image courtesy of pixabay

Edwin Kinoti

Edwin Kinoti

Edwin is a naturally curious person with a deep interest in blockchain, finance and new tech, fields which he dedicates his time to researching and documenting.

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