- In two months, Strategy increased its holdings of the first cryptocurrency by 74,000 BTC, while “imitators” added 47,000 BTC.
- Since the end of 2023, bitcoin balances on exchanges have decreased by approximately 1 million BTC.
- Over 18 months, the liquid supply of digital gold has decreased by 30%.
The acquisition of the first cryptocurrency as a treasury asset intensifies buyer pressure, but the situation may change over time. This warning was issued by Standard Chartered, reports Cointelegraph.
According to the bank’s calculations, 61 companies collectively hold 673,897 BTC on their balance sheets—3.2% of the total supply. Among them, 58 have a NAV above 1. In other words, the market value of their bitcoin position exceeds the book value.
Half of the corporations in this sample have an average purchase price above $90,000, making them vulnerable in the event of a correction. This figure significantly exceeds Strategy’s ($70,023).
“At present, this is justified by market inefficiencies, including regulatory barriers to participant access and conservative investment committee processes. However, as these are resolved, the coins could become a source of downward pressure on prices and volatility,” the review states.
Experts also noted a doubling in the number of bitcoins acquired by these 61 companies over two months—from less than 50,000 BTC to approximately 100,000 BTC.
In this regard, the pace of purchases was faster than that of Strategy. The latter added 74,000 BTC, while “imitators” added 47,000 BTC, analysts calculated.
Previously, Strategy co-founder Michael Saylor assured that the company’s capital structure is designed to remain stable even if bitcoin falls by 90% and “stays at that level for four or five years.”
The entrepreneur expressed confidence that in the future, the corporation’s capitalization will grow to $10 trillion.
According to Bernstein experts, the bitcoin strategy is not applicable to every project. The most suitable candidates are companies with low growth rates and high cash volumes.
Analysts suggest that by 2029, organizations will increase the volume of digital gold on their balance sheets to $330 billion, with Strategy remaining the leader in purchases.
Bullish Scenario from Sygnum
According to Sygnum, the accumulation of coins by institutional investors and corporations has led to a 30% reduction in liquid supply over the past 18 months. This creates conditions for a “demand shock and price volatility towards growth.”
According to specialists’ calculations, since the end of 2023, bitcoin balances on exchanges have decreased by approximately 1 million BTC. This trend is accelerating as more funds issue shares or bonds to purchase the first cryptocurrency, further absorbing the available supply, experts emphasized.
A favorable backdrop is created by geopolitical and financial uncertainty, especially in connection with the weakening USD and the growth of US government debt.
Sygnum also mentioned the adoption of laws to create a SBR by three US states, as well as similar signals abroad, particularly in Pakistan and the United Kingdom.
To date, the initiative has been approved in Texas, New Hampshire, and Arizona. In Oklahoma, Montana, Pennsylvania, North and South Dakota, and Wyoming, attempts to create an SBR failed.
Although coin purchases for a strategic bitcoin reserve have not occurred at the federal level, experts believe their initiation will become a major growth catalyst, including “due to the signaling effect.”
Interest in the first cryptocurrency is also fueled by instability in TradFi—in May, a wave of sales swept through the US debt market, which increased interest in gold and its digital counterpart.
Specialists also noted an improvement in bitcoin’s volatility profile. Over the past three years, the indicator for upward movement has exceeded its downward counterpart, which is a sign of the asset’s maturity and growing institutional investor participation, they explained.
By 2045, companies with bitcoin reserves will hold 50% of the total volume of the first cryptocurrency at 21 million coins, according to Jess Myers of Moon Inc.
Earlier, Bernstein predicted an increase in the valuation of digital gold on corporate balance sheets to $330 billion by 2029.