Publicly traded companies have achieved a significant milestone in Bitcoin adoption by collectively amassing over 1 million BTC.
The Influence of Institutional Bitcoin Holders
The presence of public companies in the Bitcoin market has notably increased. Among the leading Bitcoin holders, Strategy, co-founded by Michael Saylor, has been accumulating Bitcoin since August 2020 and controls 636,505 BTC. It stands out as the leader among institutional treasuries.
The gap with the second-largest holder, MARA Holdings, is significant, as they own 52,477 BTC, having added only 705 BTC in August. New players, like Jack Mallers' XXI, command 43,514 BTC, while the Bitcoin Standard Treasury Company holds 30,021 BTC.
Other notable names include Bullish with 24,000 BTC and Metaplanet, holding 20,000 BTC. Publicly listed entities such as Riot Platforms and Trump Media & Technology Group are becoming increasingly important participants in this growing trend of institutional accumulation.
The Hidden Crisis in the Bitcoin Network
The rising popularity of Bitcoin on Wall Street ironically puts pressure on miners, who are the foundational elements of the network. While institutional entries push BTC prices up, on-chain activities have not kept pace, leading to historically low transaction fees.
This imbalance is particularly detrimental in a post-halving environment, where block rewards have already been halved, and fees account for less than 1% of miner revenue. As profitability increasingly relies on price hikes, miners face growing financial pressure, often liquidating their holdings or ceasing operations altogether.
The risk transcends economics, as declining miner participation also threatens decentralization, potentially concentrating network security in dominant pools like Foundry and Antpool, which currently control nearly half of total hash power.
Conclusions and Forecasts
The upcoming halving in 2028, dropping rewards to just 1.5625 BTC per block, is expected to pose even greater challenges. Without new uses to increase block space demand, Bitcoin's security might weaken, and the narrative of 'digital gold' may shift away from the incentives keeping the network secure.
Hence, the increase in Bitcoin accumulation by publicly traded companies illustrates growing trust in the cryptocurrency, yet it raises concerns regarding the future of mining and network security.
