Recent reports reveal that companies Strategy and Metaplanet collectively hold about 648,000 BTC, or roughly 3.1% of the total Bitcoin supply. This is resulting in reduced market liquidity and altering pricing dynamics.
Bitcoin Accumulation by Strategy and Metaplanet
Strategy and Metaplanet have significantly increased their Bitcoin reserves. Strategy recently purchased 430 BTC for approximately $51.4 million, bringing its total to 629,376 BTC, nearly 3% of the circulating supply. Meanwhile, Metaplanet added 775 BTC valued at around $93 million, elevating its total to 18,888 BTC, valued between $1.9 billion and $2.2 billion.
Funding Acquisitions
Strategy primarily finances its acquisitions through equity issuance, balancing shareholder dilution with a rising ratio of Bitcoin to issued shares. Metaplanet has similarly leveraged capital markets for funding its purchases. Its Bitcoin yield has increased from 129% in Q2 to over 480% in August.
Impact of Corporate Accumulation on the Market
Large corporate Bitcoin purchases notably reduce the liquid supply available for retail and institutional traders. This is changing the pricing mechanism and demand for the asset. Experts predict corporate demand for Bitcoin could reach $330 billion by 2029, emphasizing the significance of current acquisitions.
The significant Bitcoin purchases by Strategy and Metaplanet are altering the market dynamics and liquidity. New funding and accumulation mechanisms indicate critical shifts in asset valuation and market accessibility.
