Institutions Now Hold 5% of Bitcoin Supply—Why Scarcity Is Fueling a Financial Revolution

In a significant development within the institutional investment landscape, Bitcoin treasury holdings have surpassed 1 million BTC, representing nearly 5% of the total Bitcoin supply. This accumulation, driven by a surge in institutional buying activity, is reshaping the dynamics of digital asset management and contributing to Bitcoin’s growing scarcity. Over the past week, corporate treasuries added approximately 9,800 BTC to their portfolios, with companies like Strategy, MARA Holdings, and Japan’s Metaplanet making substantial contributions. Strategy, the leading corporate buyer, increased its holdings to 636,505 BTC through a single 4,048 BTC purchase—surpassing its total August activity combined.

The shift toward institutional Bitcoin accumulation has been accelerating since the introduction of more favorable regulatory frameworks, particularly in the U.S. and parts of Asia. Companies are increasingly viewing Bitcoin as a strategic reserve asset, with some positioning themselves as pure-play institutional vehicles for exposure to the cryptocurrency. For instance, 114 institutions now hold 1.49 million BTC, valued at $165 billion, representing a 34.2% increase in holdings since early 2024. This trend has been further accelerated by companies like Fundamental Global Inc., which has increased its Ethereum treasury to 48,545 ETH, and CleanCore Solutions, which has established the first official Dogecoin treasury supported by the Dogecoin Foundation.

The growing institutional participation has also led to the emergence of specialized digital asset treasury platforms. CEA Industries, Inc. has adopted a concentrated strategy by acquiring BNB tokens, aiming to control 1% of BNB’s total circulating supply by early 2026. The company recently secured $500 million through a private placement and has committed to a strategic accumulation program that could see its holdings exceed $1.25 billion if fully executed. This move underscores the increasing preference for utility-driven tokens that offer both transactional value and deflationary mechanisms, unlike speculative assets with limited use cases.

The broader crypto market has also experienced a transformative shift, with the global cryptocurrency market reaching a record $4.11 trillion in capitalization in August 2025. Institutional adoption and regulatory clarity have played a critical role in this expansion. The U.S. GENIUS Act and the European MiCAR framework have provided a clearer legal environment for corporate treasuries to operate within, reducing uncertainties that previously hindered large-scale investment. As a result, public companies now collectively hold $109.49 billion in Bitcoin and over $17.6 billion in Ethereum, signaling a structural change in how traditional finance approaches digital assets.

However, analysts have also highlighted potential risks associated with the growing trend. Peter Chung of Presto Research has identified two key red flags for investors: the need for underlying assets to have long-term monetary value and the importance of management’s ability to execute complex capital market strategies. While Bitcoin remains the dominant asset for institutional treasuries, companies holding less established tokens are exposed to higher volatility and uncertainty. This cautionary perspective emphasizes the importance of due diligence and regulatory compliance when assessing corporate Bitcoin strategies.

As the institutional Bitcoin treasury movement continues to gain momentum, it is likely to influence the broader market by increasing demand for related projects that build on Bitcoin’s infrastructure. Platforms such as Bitcoin Hyper ($HYPER), which aims to create a Bitcoin Layer 2 solution, and Best Wallet Token ($BEST), which powers a multi-chain wallet, have already attracted significant investor interest through their presales. These projects are positioned to benefit from the growing demand for scalable and secure blockchain solutions, aligning with the broader trend of institutional digital asset adoption.