Bitcoin News Today: DATCOs Own 3.98 of Bitcoin Supply Amid Growing Stock-BTC Link Risks

DATCOs, or Digital Asset Treasury Companies, have rapidly accumulated over $100 billion in digital assets, with publicly traded entities forming the core of this movement. These firms, including Michael Saylor’s Strategy, Japan’s Metaplanet, and US-based SharpLink Gaming, collectively control 791,662 BTC—approximately 3.98% of Bitcoin’s total supply—and 1,313,318 ETH, or 1.09% of Ethereum’s supply [1]. Strategy, the largest of these, holds $71.8 billion in Bitcoin with more than $28 billion in unrealized gains, highlighting the potential for substantial returns from early and aggressive accumulation [1].

Beyond Bitcoin and Ethereum, many DATCOs are diversifying into at least ten additional digital assets, including Solana (SOL), Ripple (XRP), Binance Coin (BNB), and Hyperliquid (HYPE). Ethereum-focused entities are also leveraging staking and DeFi mechanisms to generate non-dilutive income, an advantage not available to Bitcoin-only firms [1].

The United States remains the dominant region for DATCO activity, but international players are increasingly entering the space, driven by regional capital market dynamics. Compared to ETFs, DATCOs have more flexibility to raise and deploy capital, potentially attracting narrative-driven investor inflows [1].

Looking ahead, DATCOs are expected to play a growing role in the crypto market. However, their expansion is not without risk. A key concern is the "reflexive" relationship forming between the stock prices of these firms and Bitcoin’s price. When investors buy into DATCOs, the companies can raise capital more easily and use it to purchase more BTC, creating a feedback loop [1]. This dynamic acts as a stimulant in bull markets, pushing prices higher. But in a risk-off environment, the same mechanism could amplify downward pressure, turning a growth engine into a liability.

Galaxy Digital notes that Bitcoin’s price is now increasingly aligned with risk-on behavior in traditional stock markets, a shift that challenges its original identity as a non-correlated asset. While DATCOs have made Bitcoin more accessible to institutional investors, they may also be creating a system where Bitcoin’s value is too closely tied to equity market performance [1].

The evolution of DATCOs underscores both the opportunities and vulnerabilities in the crypto market. As these companies continue to accumulate assets and influence price movements, investors must carefully weigh the benefits of capital flexibility against the risks of creating a more interconnected and potentially fragile system.

Source: [1] These 3 Public Companies Now Own Nearly 4% of All Bitcoin and Why That’s Risky (https://coinmarketcap.com/community/articles/688b97a682b52607e11b4c96/)