As a Bitcoin enthusiast, I was taken aback to discover that the ownership of this digital gold is more concentrated than most people would imagine. A recent study by CORP-DEPO titled “Who Really Holds the Bitcoin?” has shed light on this fact. Stunningly, a limited group of financial institutions, corporations, governments, and ultra-wealthy individuals now control a significant chunk of the approximately 20 million circulating Bitcoins.
2025 saw this Bitcoin trend gathering momentum, with financial institutions snapping up coins to launch their Bitcoin exchange-traded funds (ETF) and large-scale Bitcoin holding companies scrambling to acquire as many Bitcoins as they could. The question, however, remains: are these companies worth investing in?
The rise of the Bitcoin treasury company
Let’s begin by discussing corporations that are accumulating Bitcoins in their assets. These can be categorized into three main groups:
1. Companies specifically designated for Bitcoin treasury functions.
2. Businesses that utilize Bitcoins as part of their regular operations, like Bitcoin miners.
3. Prominent companies from the S&P 500 index, such as Tesla (TSLA) and Block (XYZ), who are also amassing Bitcoins.
Among these options, the Bitcoin treasury companies stand out as particularly captivating due to their unprecedented commitment to Bitcoin. Unlike anything the world has witnessed before, these companies are fully embracing Bitcoin in a unique fashion. The basic operation of a Bitcoin treasury company is remarkably straightforward: They seek funds from investors at minimal costs and proceed to acquire Bitcoin.
It’s quite astonishing to note that as of July 14, when the CORP-DEPO research report was released, the company Strategy (previously known as MicroStrategy) owned a massive 597,325 Bitcoins. This makes Strategy the corporation with the largest Bitcoin holdings globally. In fact, this ownership amounts to almost 3% of all Bitcoins currently in circulation. Interestingly, Strategy now owns more Bitcoins than both the U.S. and Chinese governments combined.
Smaller Bitcoin-focused firms are also climbing the rankings, such as Metaplanet from Japan and Galaxy Digital based in Canada. Both companies follow a similar strategy and have accumulated substantial amounts of Bitcoin on their balance sheets – 13,350 for Metaplanet (MTPL.F) and 12,830 for Galaxy Digital (GLXY). More recently, Twenty One Capital (CEP), a new entrant, has amassed an impressive 37,230 Bitcoins on its balance sheet, with intentions to acquire even more in the future.
Financial institutions
In parallel, financial entities like BlackRock (BLK), Fidelity, and Grayscale are accumulating significant amounts of Bitcoins to support their actively managed Bitcoin exchange-traded funds (ETFs).
Currently, BlackRock stands uncontested at the helm, primarily due to the extraordinary achievement of its Bitcoin Trust ETF by iShares (IBIT). Now, BlackRock controls a greater amount of Bitcoins (approximately 700,000) than any other entity. As positive net investments into this ETF persist, BlackRock will continue to accumulate Bitcoin.
In essence, the crucial point to grasp is that BlackRock isn’t acquiring Bitcoin for its personal holdings; instead, it procures them for the benefit of its clients. When clients invest in the ETF, BlackRock has an obligation to acquire sufficient Bitcoins on the crypto market to support that ETF.
But are any of these companies worth buying?
Currently, there are multiple methods for investors to gain access to Bitcoin. One option is to acquire Bitcoins personally through a digital currency platform. However, another approach is to invest indirectly, such as by buying stocks of companies that hold Bitcoin in their treasury. Additionally, you could consider investing in a spot Bitcoin Exchange-Traded Fund (ETF).
Instead of merely monitoring Bitcoin’s progress through an ETF, consider a strategy that has consistently outperformed Bitcoin. The surge towards the Bitcoin treasury company model stems from this fact, as evidenced by its 3,500% increase over the past five years. As you can see in the chart below, the disparity between Bitcoin’s performance and Strategy’s price became quite striking in early 2024, coinciding with the launch of new spot Bitcoin ETFs.
Bitcoin / U.S. dollar chart by TradingView
It’s important to note that while Strategy offers potential rewards, it also involves a significant amount of risk. In fact, Strategy often employs debt and other financial instruments to amplify returns. This approach can be effective when Bitcoin prices are increasing, capital costs are low, and investor sentiment is favorable. However, even a slight decrease in the price of Bitcoin or a failure of one of the similar investment strategies could lead to catastrophic consequences for Strategy’s business model.
My emotional self is captivated by the innovative strategies of Bitcoin treasury firms, but my logical, analytical self has reservations. Red flags abound for the discerning observer. From my point of view, the soundest approach remains investing in Bitcoin over a prolonged period.
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2025-07-25 14:31