Corporate Giants and Governments Amass Massive Bitcoin Holdings

As of February 2024, corporate giants Microstrategy, Tesla, and Galaxy Digital Holdings lead the way in corporate Bitcoin ownership, with Microstrategy alone holding a staggering 193,000 BTC. Governments are also getting in on the action, with China and El Salvador collectively owning approximately 244,779 BTC, accounting for 1.17% of the total circulating supply.

Why this matters: The increasing adoption of Bitcoin by corporate giants and governments could lead to a significant shift in the global financial landscape, potentially paving the way for wider mainstream acceptance of digital assets. As more institutions invest in Bitcoin, it could also lead to increased financial inclusion and economic empowerment for individuals and communities worldwide.

El Salvador, the first country to adopt Bitcoin as legal tender in 2021, now holds over 5,700 BTC worth approximately $360 million. The country's online Bitcoin treasury website, million, reserves provides real-time data on its holdings, revealing that it has bought seven BTC worth over $438,000 in the past week and 31 BTC worth $1.94 million in the past 30 days.

President Nayib Bukele aims to add 1 Bitcoin to El Salvador's treasury website daily, promoting financial inclusion, facilitating efficient remittance payments, and attracting financial innovation. The country has been dollar-cost-averaging into Bitcoin since 2021, with an average buying price of $43,097 per BTC. With BTC trading above $62,000, El Salvador has an unrealized profit of over $57.4 million on its Bitcoin holdings.

Venture capitalist Tim Draper believes that if the Bitcoin price reaches $100,000, El Salvador could become financially independent and pay off its loans to the International Monetary Fund. Many crypto analysts predict that BTC will surpass the $100,000 mark during the 2024 to 2025 bull cycle. Following the 2024 halving, Bitcoin could see a cycle top of above $150,000, according to a research report by Bitfinex analysts.

Early-stage investment firm Metaplanet has also adopted Bitcoin as its "strategic treasury reserve asset" in response to Japan's economic pressures. The company plans to prioritize a "Bitcoin-first, Bitcoin-only approach" and leverage long-dated yen liabilities and periodic share issuances to continually accumulate more BTC. Metaplanet has reportedly acquired 117.7 BTC, worth $7.19 million, since April.

In a separate development, two of the largest banks in the United States, JP Morgan and Wells Fargo, have announced their investment in Spot Bitcoin Exchange Traded Funds (ETFs). Wells Fargo holds 2,245 shares of Grayscale Bitcoin Trust (GBTC), valued at $121,207, and 37 shares of the ProShares Bitcoin Strategy ETF (BITO), valued at $1,195. JP Morgan, with $2.9 trillion in assets under management, has purchased shares of various Bitcoin ETFs worth approximately $760,000.

As corporate giants, governments, and traditional financial institutions continue to increase their Bitcoin holdings, the growing demand for cryptocurrencies, particularly Bitcoin, is evident. With Bitcoin's price predicted to reach new heights in the coming years, these strategic investments could yield significant returns and pave the way for greater mainstream adoption of digital assets.

Key Takeaways

• Microstrategy, Tesla, and Galaxy Digital lead corporate Bitcoin ownership with 193,000 BTC.
• China and El Salvador collectively own 244,779 BTC, 1.17% of total circulating supply.
• El Salvador's Bitcoin treasury holds 5,700 BTC, worth $360 million, with a daily buying plan.
• Metaplanet adopts Bitcoin as strategic treasury reserve asset, acquiring 117.7 BTC since April.
• JP Morgan and Wells Fargo invest in Spot Bitcoin ETFs, signaling growing institutional demand.