Global businesses are actively accumulating Bitcoin, with total holdings reaching 683,332 BTC, up 587% from 2020.
According to River’s latest report , as of August 2024, businesses globally hold a total of 683,332 Bitcoin (BTC), equivalent to 3.3% of the total Bitcoin supply. This represents a 587% increase from 2020 and a 30% increase in the past year alone. The report also shows that US-based companies account for the largest share, holding 49.3% of this, equivalent to $19.7 billion.
Microstrategy and Tether emerged as the two largest corporate Bitcoin whales, accounting for 85% of Bitcoin purchases in the first half of 2024. The corporate Bitcoin accumulation trend is accelerating sharply, with the number of publicly listed companies holding Bitcoin increasing by 40% from September 2023 to August 2024.
River predicts this trend will continue, estimating that corporate Bitcoin holdings will increase by 204 to 519 BTC per day through 2026. Notably, corporates tend to prefer holding physical Bitcoin rather than through Exchange Traded Fund (ETFs). The main reason is that owning an ETF can classify a company as an investment firm, leading to complicated regulatory hurdles.
“Legally, physical Bitcoin is classified as a commodity, while ETFs of any kind are classified as securities,” River’s report explains. “Under the Investment Company Act of 1940, companies that hold securities that represent more than 40% of their balance sheet assets are regulated as investment companies. For most companies, being designated as an investment company entails significant costs and reporting requirements.”
As a result, most businesses that have access to Bitcoin choose to hold it directly rather than through an ETF. According to River’s own data, 70% of their corporate clients have never sold any Bitcoin after purchasing it, considering it a long-term asset. Despite initial concerns about accounting and tax issues, 95% of the clients surveyed said they plan to expand their Bitcoin holdings in the future.
The report also highlights some notable examples of successful integration of Bitcoin into business. Construction company Summerplace Homes uses Bitcoin as a hedge against economic downturns, while soccer club Real Bedford FC has leveraged Bitcoin as both a treasury asset and a core element of its branding strategy, boosting revenue and fan base.
River concludes that, although Bitcoin adoption as a treasury asset has not yet become widespread, the potential for strategic advantage and financial security is driving more and more businesses to explore and choose this path.
