The accumulation of over one million Bitcoins by public companies highlights the growing institutional interest in cryptocurrency.
How Institutional Giants Impact the Bitcoin Sector
Institutional players, such as corporate treasuries, mining companies, and ETF issuers, are increasingly entering the Bitcoin market. Notably, MicroStrategy, co-founded by Michael Saylor, has accumulated 636,505 BTC since August 2020, putting it at the top of the list of institutional Bitcoin holders. Following closely are MARA Holdings with 52,477 BTC and XXI, founded by Jack Mallers, which has quickly acquired 43,514 BTC.
Why Bitcoin Miners Face a Crisis
The influx of institutional investments has inadvertently pressured Bitcoin miners, who are a critical component of the network. While institutional activities have buoyed Bitcoin’s price, CoinMetrics reports a lag in on-chain operations, leading to low transaction fees that account for less than 1% of miners' income post-halving. "The rising price of Bitcoin doesn’t necessarily translate to increased miner revenue if on-chain fees remain minimal," a spokesperson said, echoing concerns about long-term miner sustainability.
Key Conclusions from the Current Scenario
From the current situation, several key conclusions can be drawn: * 5% of Bitcoin’s supply is now held by public companies. * MicroStrategy holds a significant portion of institutional Bitcoin shares. * Miners struggle with low revenues due to insufficient transaction fees. * Long-term network security concerns loom with the upcoming 2028 halving.
These trends could usher in challenges and opportunities for both institutional investors and core network participants, especially as the next halving event approaches, potentially reshaping the Bitcoin landscape and its perceived role as 'digital gold.'
