Public Companies Outpace ETFs in Bitcoin Acquisitions by 18%

Public companies have outpaced exchange-traded funds (ETFs) in Bitcoin (BTC) acquisitions for three consecutive quarters, indicating a growing trend among corporations to adopt Bitcoin as a treasury reserve asset. This shift is particularly notable in a regulatory environment that has become more favorable under the current administration.

Data from Bitcoin Treasuries reveals that public companies acquired approximately 131,000 Bitcoin in the second quarter of the year, representing an 18% increase in their holdings. In contrast, ETFs secured about 111,000 Bitcoin, marking an 8% growth during the same period. This disparity highlights the increasing interest of public companies in Bitcoin as a strategic asset.

Nick Marie, head of research at Ecoinometrics, noted that the motivations behind these purchases differ significantly. While institutional buyers using ETFs seek exposure to BTC for various reasons, public companies are primarily focused on accumulating Bitcoin to enhance shareholder value. This strategy is evident in the market dynamics, where public company BTC holdings increased by 4% in April, a month marked by significant volatility following the announcement of initial tariffs. During the same period, ETF holdings rose by only 2%.

Marie emphasized that public companies are less concerned with Bitcoin’s current market price, prioritizing the growth of their Bitcoin reserves to appear more attractive to potential investors. This approach reflects a long-term strategy aimed at maximizing shareholder value through Bitcoin accumulation.

Despite the increasing activity from public companies, Bitcoin ETFs remain the largest holders of the cryptocurrency, collectively holding over 1.4 million BTC, or about 6.8% of the total capped supply of 21 million coins. Public companies, on the other hand, hold around 855,000 Bitcoin, approximately 4% of the total supply. The recent surge in corporate BTC accumulation is also a reflection of significant regulatory changes favoring the crypto industry. The last time ETFs outperformed public companies in Bitcoin purchases was during the third quarter of 2024, prior to the re-election of the current administration.

Several notable companies have entered the Bitcoin market recently. GameStop began acquiring Bitcoin after its board approved it as a treasury reserve asset earlier this year. Similarly, health-care firm KindlyMD merged with Nakamoto, a Bitcoin investment company, while investor Anthony Pompliano’s ProCap launched its own BTC purchasing initiative and plans to go public via a special purpose acquisition company (SPAC).

Strategy, formerly MicroStrategy, continues to lead the charge in the Bitcoin treasury space with approximately 597,000 Bitcoin in its possession. Following closely is Bitcoin miner Mara Holdings, which holds nearly 50,000 coins. Ben Werkman, chief investment officer at Swan BTC, remarked on the challenges smaller firms face in trying to match Strategy’s scale. He predicted that institutional capital will continue to gravitate toward Strategy due to its deep liquidity and established presence.

Looking ahead, Marie suggested that the number of companies adhering to a BTC treasury strategy may dwindle over the next decade as the market matures. He noted that as more firms enter the space, the individual impact of each company will likely diminish. Additionally, as Bitcoin becomes more normalized, investor constraints regarding direct exposure may fade.