Publicly Traded Companies Are Tripling Their Bitcoin Holdings!

In an uncertain economic context, publicly traded companies are massively turning to Bitcoin as a safe haven. In just one year, their crypto holdings have tripled, rising from $7.2 billion to $20 billion. This trend reveals a growing confidence of institutional investors in the long-term potential of BTC.

Public companies are betting big on Bitcoin: $20 billion in assets in one year

Bitcoin is gaining ground in the portfolios of publicly traded companies. In just one year, their crypto holdings have exploded, rising from $7.2 billion to $20 billion, a nearly 200% increase.

The enthusiasm of companies for Bitcoin began in August 2020 with MicroStrategy’s bold bet. The business intelligence company then acquired more than 21,000 BTC, making crypto its primary reserve asset.

Since then, MicroStrategy has continued to increase its position, now holding 226,500 BTC. This forward-thinking strategy has paved the way for other major market players.

The growing interest of companies in Bitcoin prompted Nickel Digital to conduct an in-depth survey of 200 institutional investors and wealth managers worldwide.

The results are striking: 75% of organizations already invested in crypto believe that public companies should integrate Bitcoin into their balance sheets. Even more striking, 26% of respondents firmly support the use of Bitcoin as a reserve asset.

Promising prospects for the future

Nickel Digital’s study reveals optimistic projections for the future adoption of Bitcoin by publicly traded companies. Among the participants, who collectively manage $1.7 trillion in assets, 58% predict that more than 10% of public companies will hold Bitcoin in their reserves within five years.

Some go even further, with 8% of respondents anticipating adoption by more than 25% of publicly traded companies over the same period.

Anatoly Crachilov, CEO and co-founder of Nickel Digital, highlights the significance of these results: “Institutional investors and wealth managers clearly see the long-term benefit of exposing publicly traded companies to digital assets as part of their reserve allocation, thereby helping to mitigate the risk of monetary depreciation.”

Although the increase in Bitcoin holdings by publicly traded companies is spectacular, it still represents only the tip of the iceberg. With only 1.6% of the total Bitcoin supply held by these companies, the potential for expansion remains colossal. This current low penetration suggests a promising horizon for institutional adoption of crypto.