Bitcoin reserves on exchanges have dropped to a six-year low, as public companies, including Strategy, ramp up their purchases, indicating a trend towards long-term investment. Fidelity Digital Assets reports a decline in supply and predicts further accumulation among firms. Meanwhile, companies in Asia, like Metaplanet and HK Asia Holdings, are also increasing their Bitcoin holdings.
Bitcoin reserves on cryptocurrency exchanges have seen a significant decline, dropping to their lowest level in over six years, thanks largely to increased purchases by public companies. Following the US presidential election, Fidelity Digital Assets reported that Bitcoin (BTC) supply on exchanges fell to approximately 2.6 million BTC, the lowest figure since November 2018. Notably, around 425,000 BTC have been transferred off exchanges since November, a shift interpreted as a move toward long-term investment rather than short-term speculation.
Fidelity’s analysis indicates that roughly 350,000 BTC has been accumulated by publicly traded companies during the same period. This trend, according to Fidelity, is expected to continue to accelerate as more firms look to add Bitcoin to their assets. Fidelity Digital Assets is a subsidiary of Fidelity Investments, a major $5.8 trillion asset manager based in Boston. Established in 2018, this arm of Fidelity was created before cryptocurrencies were more widely recognised as institutional investment vehicles.
Among the firms driving this trend, Strategy, co-founded by Michael Saylor, stands out significantly. Since November, Strategy has reportedly acquired a staggering 285,980 BTC, making up 81% of the total Bitcoin purchased by public companies. Their most recent transaction revealed earlier this week disclosed an acquisition of 6,556 BTC.
Globally, other companies outside the US have followed suit, implementing similar Bitcoin treasury strategies. In Japan, Metaplanet has amassed 5,000 BTC, with ambitious plans from CEO Simon Gerovich to double that amount this year. Meanwhile, HK Asia Holdings in Hong Kong is aiming to raise approximately $8.35 million, ostensibly to bolster its Bitcoin reserves. This trend seems to indicate a broader institutional shift toward embracing Bitcoin as a valuable asset.
Corporate interest in Bitcoin continues to grow, as firms adapt their strategies around this emerging digital currency. As more publicly traded companies join the ranks of BTC holders, the landscape of cryptocurrency investment is likely to change shape even further, suggesting a healthy uptick in Bitcoin’s long-term stability amongst institutional investors. The quarterly outlook for the cryptocurrency market presents intriguing possibilities for ongoing investment trends, especially leading into the second quarter of the year.
There’s talk in some circles about an impending Altcoin season and how some projects are positioning themselves — but that’s a saga for another time.
