Corporate Bitcoin Treasuries: A Growing Trend
for years, Strategy (formerly MicroStrategy) was the only public company buying Bitcoin with borrowed money. Now, othre firms are following suit. This shift raises concerns about crypto centralization.
currently, 216 entities, including 101 public companies, hold nearly 31% of the circulating BTC. Corporate treasuries alone own about 765,300 bitcoins, or 3.7% of the total supply. This trend is accelerating as more companies invest in Bitcoin.
High-profile figures like Jack Mallers and David Bailey are leading the charge. Anthony Pompliano’s ProCapBTC is reportedly raising $750 million to accumulate Bitcoin. Each new proclamation excites Crypto Twitter, but the actual impact on BTC’s price is unclear. Despite bullish news, Bitcoin’s price continues to fall.
According to Gemini research, adoption by sovereign and regulated institutions has decreased Bitcoin’s volatility. The launch of Bitcoin ETFs in 2024 further stabilized the market. Though, Bitcoin’s price remains stuck between $100,000 and $110,000. retail interest is low, and treasuries not only buy but also sell BTC for cash. Announcements often overstate the full deal amount, which can take months to complete. This accumulation pulls coins out of circulation,making them dormant. Some critics argue this contradicts Bitcoin’s original vision as an choice electronic cash.
Many Bitcoin enthusiasts prefer owning their coins. They believe in the “not your keys, not your coins” mantra. Some criticize corporate treasuries for not representing Bitcoin’s spirit. As an example, MicroStrategy faced SEC accusations during the dot-com bubble.
Bitcoin’s price is now steady,without frequent fluctuations. The mass accumulation by corporates and ETFs is getting close to Satoshi’s vision of a rarely used network. Critics question if corporate treasuries truly benefit the crypto community.
- 216 entities hold 31% of circulating BTC.
- Corporate treasuries buy and sell BTC, affecting its role as electronic cash.
- Bitcoin’s price is steady, but it may take time to exceed $130,000.
Bitcoin’s price is stuck between $100,000 and $110,000. The “not your keys, not your coins” attitude persists. Maximalists remind us that Bitcoin is free to purchase without corporate involvement.
Bitcoin treasuries need to attract investors, driving coins away from circulation.
Bitcoin’s price is steady but slow-moving.
Corporate treasuries face criticism for not representing Bitcoin’s spirit.
Bitcoin Treasuries: A Bridge to mainstream adoption
Bitcoin treasuries are gaining traction as a way for traditional finance to tap into the cryptocurrency’s potential. These treasuries allow companies to invest in bitcoin without directly holding it. This setup appeals to institutional investors who prefer the familiarity of stocks and ETFs.
Adam Back, CEO of Blockstream, sees these treasuries as a way to accelerate Bitcoin adoption. he explains, “They are an arbitrage between the current fiat system and a future hyper-bitcoinized economy.” Companies can buy Bitcoin now and pay for it later,making it accessible to those who might not have the means otherwise.
However,not everyone is convinced. Some Bitcoin enthusiasts worry that investors might sell their coins to buy these assets rather. back advises against this, saying, “HODL. You won’t be able to buy them back before long.”
There are concerns about the credibility of those promoting Bitcoin treasuries. As an example, Mike Novogratz, CEO of Galaxy Digital, has faced criticism for his past involvement with the collapsed crypto exchange FTX. This has led some to question his suitability for leading a Bitcoin treasury.
Despite these concerns, Bitcoin treasuries offer a way for traditional investors to participate in the cryptocurrency market. They provide a bridge between the old and new financial systems, making Bitcoin more accessible to a broader audience.
