The accumulation of Bitcoin (BTC) by public corporations has reached an all-time high of 592,112 BTC in 2024, according to data from Bitcoin Treasuries. This staggering amount represents a significant milestone in the adoption of Bitcoin by traditional institutions.
Ryan Rasmussen, the head of research at Bitwise, highlighted that this number is double the amount of Bitcoin that institutions had accumulated in the previous five years combined. This demonstrates a growing interest and confidence in Bitcoin as a store of value and investment asset.
Looking back at the history of accumulation, on Jan. 1, 2024, publicly listed companies held 272,777 BTC. Two notable leaps in accumulation were observed in 2020 and 2021, with institutions approaching a 100,000 BTC stash during the first year of the COVID pandemic. The following year, the amount surpassed 200,000 BTC.
However, there was a temporary interruption in momentum as companies realized part of their Bitcoin stash, almost dropping below the 200,000 BTC threshold. The accumulation trend resumed in 2023 and surged significantly in the following year.
It is worth noting that Strategy, led by Michael Saylor, holds a substantial amount of Bitcoin, with over 499,000 BTC in its treasury as of March. This company added 257,095 BTC last year through 16 purchases, significantly impacting the overall amount held by public corporations.
Rasmussen pointed out that public companies collectively hold $52 billion worth of Bitcoin as of March 6, equivalent to 3% of the total Bitcoin supply. This demonstrates the growing influence and presence of institutional investors in the cryptocurrency market.
In addition to public corporations, various institutional investors also saw a significant increase in their Bitcoin holdings in 2024. According to Bitcoin Treasuries data, private companies, exchange-traded product (ETP) managers, governments, and publicly listed firms held a total of 2,802,135 BTC by the end of the year, compared to 1,622,439 BTC at the beginning of 2024.
The growth in Bitcoin holdings was particularly notable among governments and ETP managers. Governments saw their Bitcoin reserves grow from 90,379 BTC to 513,791 BTC, while ETP managers increased their holdings from 771,013 BTC to 1,289,031 BTC over the same period. Private companies, on the other hand, decreased their holdings from 488,270 BTC to 407,201 BTC by the end of 2024.
Overall, the increasing accumulation of Bitcoin by institutional investors signifies a growing acceptance and adoption of cryptocurrencies as a legitimate asset class. This trend is likely to continue as more traditional financial institutions recognize the value and potential of digital assets in the global economy.