What happened?
A recent report reveals that over the past 20 months, businesses across major industries have bought an average of 1,755 Bitcoin daily, adding over $1.3 trillion to Bitcoin’s market cap. These purchases are significantly influenced by Bitcoin Treasury Companies, which make up 76% of all business purchases since January 2024. The acquisition of Bitcoin has largely grown because it provides shareholders who can’t purchase Bitcoin directly with equity-based exposure to its price movements.
Who does this affect?
This development impacts a wide range of stakeholders. Businesses in industries such as real estate, software development, consulting services, healthcare, logistics, consumer goods, media companies, and automotive sectors have started to see the value in Bitcoin. Stock-listed entities amassing Bitcoin reserves and shareholders looking for exposure to Bitcoin price movements also play a significant role. Notably, 63.6% of these companies treat Bitcoin as a permanent investment vehicle, continuously accumulating positions without immediate selling or portfolio rebalancing intentions.
Why does this matter?
This matters because the steady inflow of investment into Bitcoin could potentially drive its price above $125K. The widespread adoption of Bitcoin by businesses across varied sectors indicates its increasing value and integration into the mainstream financial system. Furthermore, the fact that companies are allocating an average of 22% of net income towards Bitcoin investments demonstrates conviction in the cryptocurrency’s long-term potential. This trend is likely to continue influencing Bitcoin’s market impact, liquidity, and price volatility.