Bitcoin Reserves on Exchanges Hit 6-Year Low as Public Companies Accumulate 350,000 BTC

Bitcoin reserves on cryptocurrency exchanges have reached their lowest level in over six years, driven by a surge in acquisitions by publicly traded companies following the US presidential election. According to Fidelity Digital Assets, this trend is expected to continue in the near future. The supply of Bitcoin on exchanges has decreased to approximately 2.6 million BTC, the lowest level since November 2018. This decline is attributed to the movement of over 425,000 BTC off exchanges since November, a trend that is often interpreted as a sign of long-term investment rather than short-term trading.

Fidelity Digital Assets, a subsidiary of Fidelity Investments, noted that publicly traded companies have acquired nearly 350,000 BTC during the same period. This significant accumulation has been largely driven by Strategy, a business intelligence firm that has transformed into a Bitcoin bank. Strategy, co-founded by Michael Saylor, has acquired 285,980 BTC since November, accounting for 81% of the total BTC purchased by publicly traded companies. Strategy's latest purchase of 6,556 BTC was disclosed on April 21.

Beyond the United States, publicly traded companies in Asia have also adopted similar Bitcoin treasury strategies. For instance, Japan’s Metaplanet currently holds 5,000 BTC, with CEO Simon Gerovich aiming to double that amount this year. Additionally, HK Asia Holdings has announced plans to raise approximately $8.35 million to potentially increase its Bitcoin reserves.

This trend of public companies accumulating Bitcoin suggests a growing institutional interest in the digital asset as a long-term investment. The decrease in Bitcoin supply on exchanges indicates that more Bitcoin is being held for investment purposes rather than for short-term trading. This shift in behavior among public companies could have implications for the overall market dynamics of Bitcoin, potentially leading to increased demand and reduced supply on exchanges.