Bitcoin Surge Boosts Institutional Holdings by 28 Billion

Bitcoin’s recent surge to an all-time high exceeding $118,000 has resulted in substantial gains for institutional asset holders. Major corporations and some nations with significant Bitcoin holdings have seen notable increases in their asset valuations. Despite the surge, these holders show reluctance to liquidate their assets, viewing Bitcoin as a long-term store of value.

Strategy, a company that transitioned from a tech firm to a cryptocurrency giant, owns nearly 600,000 Bitcoins, resulting in an unrealized gain of around $28 billion. Strategy invested over $42 billion and ranks as the third-largest Bitcoin holder. The company maintains its Bitcoin holdings directly on its balance sheet, while BlackRock secures them on behalf of investors. BlackRock’s iShares Bitcoin Trust started operations in January last year. Michael Saylor, Strategy’s co-founder and chairman, frequently emphasizes that selling is not part of their strategy, stating, “The laments of sellers echo through eternity.”

Japanese firm Metaplanet has been aggressively accumulating Bitcoin since 2024 and currently holds about 15,555 Bitcoins, with assets valued at approximately $1.83 billion. Metaplanet reports an unrealized profit of $284 million. El Salvador, which adopted cryptocurrency as legal tender, owns 6,234 Bitcoins. The total value of these assets has risen to approximately $733 million, with the nation’s paper gains reaching $232 million. This marks a significant recovery from the devaluation experienced in 2022.

Smaller companies have also benefited from the leap in Bitcoin prices. Semler Scientific adopted Strategy’s path last year and currently holds 4,636 Bitcoins, resulting in unrealized profits close to $160 million. Meanwhile, France-based Blockchain Group amassed 900 Bitcoins, earning approximately $30.5 million. Despite significant gains, there is little indication of major sales. Investors, often termed “maximalists,” continue to view Bitcoin as a long-term store of value. The harsh reality might unfold by July 12; the next bull market could be triggered if a key corporation initiates sales, prompting others to follow. Time will tell.

The recent Bitcoin price surge highlights the potential impact of institutional investments on cryptocurrency markets. The reluctance to sell and long-term perspectives of major investors may bolster market confidence and price stability. Institutional investors’ portfolio diversification and profit margins increasingly affirm cryptocurrency’s position in the financial system.