Bitcoin Treasury Companies Hold 4% of Supply Yet Impact Only 0.59% of Daily Price Movements

A recent study by a crypto investment firm, Keyrock, has revealed that Bitcoin treasury companies have a minimal impact on the daily price movements of Bitcoin. The Brussels-based firm published its market report on July 10, highlighting that despite holding a combined 847,000 BTC, which is approximately 4% of the total Bitcoin supply, these companies account for only 0.59% of daily BTC price movements. The report relied on data from both public and private companies that disclose their Bitcoin holdings in financial reports or regulatory filings.

The largest corporate holder, Strategy, controls over 1% of the total BTC supply. In the second quarter of 2024, corporate holdings grew by over 159,000 BTC, marking the highest quarterly increase so far. However, this significant increase in holdings had little to no effect on Bitcoin’s short-term market movements. The report noted that most companies behave as long-term holders and do not frequently move their coins, resulting in no strong correlation between treasury buying and BTC price trends.

Bitcoin held in corporate treasuries does not influence trading behavior or market momentum. Price action remains dominated by spot markets, exchange-traded products, derivatives, and retail activity. Treasury growth, while symbolic, has not translated into volatility or upward price pressure. This indicates that the market dynamics of Bitcoin are influenced by a broader range of factors beyond corporate holdings.

The report also revealed that public companies holding large Bitcoin reserves often trade at a premium to their actual BTC value. MicroStrategy currently leads with a 91.3% premium over the market value of its holdings, meaning investors pay $191 for every $100 of Bitcoin exposure through its stock. Other treasury firms show similar premiums, ranging from 20% to 60%, depending on market cycles and investor demand. These premiums reflect how equities with Bitcoin exposure are priced above the value of the coins they hold.

The report tracked multiple companies with disclosed BTC holdings and found consistent overvaluation in share price compared to underlying assets. This trend was present even when Bitcoin was flat or declining. The firm noted that these premiums move independently of Bitcoin’s price, often responding faster to market sentiment, news, or speculation. Premiums narrowed sharply during drawdowns but widened again during price surges. This gap between share price and BTC value highlights a cost difference for investors using public equities to gain Bitcoin exposure.

Most of the Bitcoin held by treasury companies remains inactive, stored offline and not used as collateral or in financial products. Companies holding BTC rarely use their reserves for lending, yield generation strategies, or derivatives. Their internal rules and custody structures limit their operational use of the assets, which means that while treasury firms hold large volumes, they are not used for leverage or liquidity. Keyrock notes that only a small percentage of treasury assets are moved or deployed after acquisition, with most remaining static, even during market volatility. This approach keeps holdings secure but also limits strategic flexibility. Treasury companies do not benefit from yield or lending returns, even as other platforms generate revenue from active BTC use.

However, the report noted that unless these firms adapt, they may lose ground to institutions with more dynamic strategies, as treasury growth without use cases is not the best way to maximize resources. This suggests that while corporate holdings of Bitcoin are significant, their impact on the market is limited due to their passive nature and lack of active use in financial strategies.