The data shows that 24 companies have raised more than 460,500 BTC, which at the current bitcoin price is worth $22 billion.
According to Mikhail Novogratz, this figure excludes 3 million. BTC has lost for good, so it is estimated that there could be a supply shortage in the near future if institutions continue their current purchases.
The current stock includes MtGox K, which holds approximately 141,690 BTC ($6.6 billion). The next block is Block 1, which is estimated to be worth 140,000 BTC ($6.5 billion). MicroStrategy also owns about 71,000 BTC ($3.3 billion), and Tesla bought 38,500 BTC (about $1.8 billion) this week.
Analysts now expect that holding bitcoin in cash will soon become the norm for companies, as there are many technical reasons to consider bitcoin as a hedge against inflation.
First, BTC has a limited supply in circulation that mimics gold reserves and can be used at cost. Moreover, there is no way to speed up the supply of bitcoins through additional mining.
Large holders further limit the supply in circulation by buying large quantities on the market and storing them in cold stores. This longstanding holding culture among most cryptocurrency participants reduces even small holdings, creating a vicious cycle.
For savvy CFOs, a bitcoin treasury offers some protection from regulation and arbitrage, since governments cannot freeze funds.
What is surprising about Tesla’s decision to buy bitcoin is the timing, as the decision came after the price of BTC had risen 250% in four months.
Rankingof companies, cryptographers and metals. Source : 8marketcap.com
This week, BTC’s market capitalization surpassed that of Tesla to reach the ninth position among all traded assets.
Buying bitcoin may have been considered a very bold move in the past, but for institutional investors it is increasingly becoming common sense.
With a rough estimate of $10 trillion in corporate treasuries worldwide, even a 3% allocation to BTC is $300 billion, or about a third of bitcoin’s total value in liquid assets.
When you consider that over 60% of bitcoin stock has not moved for over a year, an inflow of $300 billion is almost unthinkable for an asset with a float of $355 billion.
On top of that, BTC miners produce 341,640 per year, which amounts to only $16.3 billion. So it is safe to assume that a stable distribution of BTC among companies could more than double the current price of bitcoin.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and every stage of trading involves risk. You should do your own research before making a decision.
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