Bitcoin treasuries now hold over 3% of all BTC, showing how more companies are investing in crypto for the long term as adoption continues to grow.
Over 60 Bitcoin strategy adopters increased their holdings in the past two months, surpassing Michael Saylor’s strategy’s buying speed.
Standard Chartered claims that due to the trend of Bitcoin reserve strategies, at least 61 corporate treasuries currently own 3.2% of all Bitcoin that will ever exist.
Standard Chartered’s global head of digital asset analysis, Geoff Kendrick, stated in a June 3 report that publicly traded firms globally currently control 673,897 Bitcoin (BTC $105,941).
In the paper, Kendrick emphasized the ramifications of Bitcoin’s increasing appeal as a treasury asset while cautioning about the dangers arising from its quick corporate uptake.
According to the analyst, “For the time being, Bitcoin treasuries are increasing the pressure to buy Bitcoin, but we see a risk that this may reverse over time.”
Bitcoin treasuries as a downward price force
The study found that 58 of the 61 corporate bitcoin treasuries it examined had net asset value (NAV) multiples above 1, indicating that their market value exceeded the value of their net assets.
Kendrick said, “At this time, we believe that market inefficiencies, such as regulatory barriers to investor access and cautious investment committee procedures, justify this.”
“But as these inefficiencies are eventually removed, we think Bitcoin treasuries could become a source of downside price pressure and volatility.”
Additionally, given that 50% of the enterprises have average acquisition costs above $90,000, the volatility of Bitcoin itself may push the price of BTC below the average purchase prices of many discoveries. The amount is substantially larger compared to Strategy’s average cost of purchasing 580,955 Bitcoin holdings for $70,023 per BTC.
Bitcoin holdings are doubled in two months by strategy “imitators.”
Additionally, Kendrick noted that a considerable number of Strategy “imitators” had begun to accumulate Bitcoin recently, with holdings increasing dramatically over the last few months.
In particular, according to the analysis, the quantity of Bitcoin owned by those 60 businesses has doubled over the last two months, rising from less than 50,000 BTC to over 100,000 BTC.
According to Kendrick, this buying speed significantly surpasses that of Strategy, which, during the last two months, added 74,000 BTC, as opposed to 47,000 for the others.
SolarBank of Canada is one of the most recent adopters.
Standard Chartered’s research coincided with a fresh wave of businesses, like Canadian renewable energy provider SolarBank, declaring their acceptance of the Bitcoin strategy.
In a formal announcement on June 3, SolarBank stated that it had applied to register an account with Coinbase Prime to offer secure custody, USDC (US$0.9995) services, and a self-custodial wallet for its Bitcoin assets.
The same day, the Paris-based cryptocurrency company Blockchain Group said it will acquire Bitcoin for $68 million. This was in line with the Norwegian cryptocurrency brokerage company K33, which funded $6.2 million to purchase Bitcoin in late May.
Strategy, the primary Bitcoin strategy inspirer, is confident about its Bitcoin stockpile regardless of the price, despite Standard Chartered’s worries about the dangers of growing corporate adoption of the cryptocurrency in the environment of volatility.
Strategy co-founder Michael Saylor claims that even if Bitcoin “stays there for four or five years” and drops 90%, the company’s financing structure is built to be stable.
“The equity investors wouldn’t benefit from it. Since they are leveraged, those at the top of the capital structure would suffer, but everyone else would get paid out,” Saylor stated in a May Financial Times documentary.
