Why Public Companies Are Stockpiling BTC?

Public companies are rapidly building up Bitcoin reserves, with their purchases of Bitcoin surpassing those of U.S. exchange-traded funds (ETFs) for the third consecutive quarter.

According to data from Bitcoin Treasures, in the three months ending June 30, the Bitcoin holdings of U.S. corporations increased by approximately 18%, adding around 131,000 Bitcoins. In contrast, Bitcoin ETF holdings grew by 8%, with an increase of about 111,000 Bitcoins.

The last time Bitcoin ETF purchases exceeded those of publicly traded companies was in the third quarter of 2024, before former U.S. President Donald Trump won the presidential election.

This trend suggests a shift in corporate Bitcoin allocation strategies. Nick Marie, Head of Research at Ecoinmetrics, believes that, unlike institutional buyers gaining Bitcoin exposure through ETFs, publicly traded companies are primarily purchasing Bitcoin to accumulate reserves and enhance shareholder value.

In April of this year, despite market volatility triggered by Trump's tariff announcements, publicly traded companies expanded their Bitcoin holdings by 4%, outpacing the 2% growth in Bitcoin ETF holdings.

Marie added, "They don't really care if the price is high or low; they care about growing their bitcoin treasury, so they look more attractive to the proxy buyers. It's not so much driven by the macro trend or the sentiment; it's for different reasons. So it becomes a different kind of mechanism that can push bitcoin forward."

However, Bitcoin ETFs still hold the largest Bitcoin reserves among single entities. Launched collectively in the U.S. in January 2024, Bitcoin ETFs have become one of the most successful ETFs in history, currently holding over 1.4 million Bitcoins—about 6.8% of Bitcoin's total capped supply of 21 million. In comparison, publicly traded companies hold approximately 855,000 coins, accounting for roughly 4%.

This trend reflects the broader crypto industry's benefits from relaxed regulations under the Trump administration. In March of this year, Trump signed an executive order on U.S. Bitcoin reserves, sending a strong signal.

Currently, MicroStrategy remains the dominant player in the Bitcoin treasury game, holding about 597,000 Bitcoins and pioneering a strategy now being emulated by over 140 publicly traded companies worldwide. It is followed by Bitcoin miner Marathon Digital Holdings, which owns nearly 50,000 Bitcoins.

Several new entrants have joined the space recently. In the second quarter of this year, GameStop began purchasing Bitcoin after its board approved it as a reserve asset in March; healthcare company KindlyMD announced a merger with Bitcoin investment firm Nakamoto & Co.; and investor Anthony Pompliano's ProCap launched its own Bitcoin acquisition plan and plans to go public via a special purpose acquisition company (SPAC).