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1.6 million Bitcoins Are Now Held by Companies, Accounting for Nearly 8 Percent of The Total Supply
According to statistics from Bitcoin Treasuries, businesses that have bitcoin on their balance sheets currently have a total of up to 1,660,473 BTC under management. This equates to almost 8% of the total amount of bitcoins in circulation. The information in question pertains to a portfolio of publicly listed businesses, private enterprises, governments, and ETF-like products. However, since it does not account for bitcoin that has been lost or is no longer available, the proportion of usable bitcoins may be greater. MicroStrategy, developed by Michael Saylor, is the leader of the pack. The data analysis company has 108,991 bitcoins (about 0.5 percent of the total supply). Surprisingly, the firm’s Bitcoin holdings have risen to account for 75% of its entire market capitalization and before we get ahead, register yourself on bitcoin-champion.com, and learn all there is about the safest ways to earn bitcoin currency.
As a percentage of its total market capitalization, Michael Saylor’s MicroStrategy is the publicly listed business with the largest bitcoin allocation in both absolute and relative terms. With the simplest but most successful combination of DCA and HODL, the software intelligence business has set a new standard in the corporate sector. A total of 108,991 bitcoins were purchased for over $3 billion at the time of acquisition. The bitcoins are now worth well over $5 billion and account for approximately 75% of the company’s entire market capitalization, which stands at $7.12 billion at the time of writing. The value of MicroStrategy’s bitcoin holdings has risen by almost 180 percent in dollar terms, and the company now has roughly 0.52 percent of the entire quantity of 21 million bitcoins, according to CoinMarketCap.
According to Bitcoin Treasuries statistics, publicly traded corporations, private enterprises, governments, and ETF-like offers together own 1,660,473 bitcoins, accounting for roughly 7.91 percent of the entire supply of bitcoin. This percentage does not consider bitcoin that has been lost or is no longer available; as a result, the proportion of bitcoin that is truly usable is likely to be higher.
As more businesses become aware of what Bitcoin is and the unique opportunities in the next few years, the competition is expected to heat up considerably, further depleting the available supply in the market. And while they are unaware of this, the Bitcoin plebs may benefit by regularly accumulating sets at cheaper rates.
Is There a Shortage of Bitcoin Available?
Even though bitcoin’s price has fluctuated sideways or downward in the past, the trend has always been upward. This tendency has been reversing during the current bull run, and the bitcoin balance on exchanges has been decreasing since March 2020, when the bull run began. If the fundamental dynamics have not altered, as shown by the decrease in exchange balances in 2016 and the subsequent rise in exchange balances in 2017, the protracted fall in exchange balances this time around may be a precursor to a big bull run.
This is not the subject of this post, but it should be noted that this trend is being driven mostly by outflows from Coinbase, which indicates that institutional and big investors are playing a role. Current suggests that bitcoins are unlikely to flow back to exchanges in large quantities any time soon before reaching the apex of this cycle. As a result, the trends from 2016/2017 may not recur, and bitcoin may reach a new all-time high, even though the bitcoin balance on exchanges is decreasing.
The overall decrease in bitcoin supply on exchanges has prompted many communities (including myself) to speculate about a supply shortage or even a supply squeeze of bitcoin, which would surely result in a spike in bitcoin’s price at some time in the future when supply runs out. While it is true that bitcoin’s supply is decreasing, when the quantity stored on exchanges is expressed in US dollars, the picture becomes a little more complicated. When looking at the graph, it seems that there is no genuine supply deficit in the United States Dollar (USD), much alone a supply crunch on the currency markets. With the rise in bitcoin price in 2020, the quantity of bitcoin on exchanges in the United States has also increased. Although the rise in supply in USD terms during this halving cycle seems significant, especially when compared to the previous year, it is equally fascinating to examine the changes in relative terms.