Corporate Bitcoin Buying Slows as Total Holdings Reach Record High
Corporate interest in Bitcoin slowed in October, as businesses, governments, and ETFs added a total of 14,447 BTC, marking the smallest monthly increase this year despite total holdings reaching a record 4.05 million BTC, valued at $444 billion. Public firms held over 1.05 million BTC, governments owned 644,329 BTC, and ETFs/exchanges accounted for 1.54 million BTC. The slowdown follows aggressive buying in September, with companies focusing on defensive strategies like share buybacks rather than large purchases due to tighter funding conditions. Analysts note this trend reflects a shift in market sentiment, with corporate Bitcoin holdings contributing to supply constraints and suggesting firms wait for renewed investor interest.
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Record High Bitcoin Holdings Despite Slowdown in Acquisition
Corporate appetite for Bitcoin cooled in October, even as total holdings across companies, governments, and ETFs reached their highest level on record. This indicates a shift from rapid accumulation to a more defensive stance across balance sheets.
Sharp Drop in Monthly Bitcoin Additions
Public and private firms added 14,447 BTC during the month—a smallest increase this year, according to an October report from online tracker BitcoinTreasuries.net. This represents a sharp pullback from September, when corporate treasuries purchased more than 38,000 coins amid rising prices and stronger market sentiment.
Breakdown of Bitcoin Holdings Across Entities
Despite the slower acquisition rate, overall ownership continued to rise. According to the report:
- Total tracked holdings: 4.05 million BTC (valued at roughly $444 billion).
- Public companies: Just over 1.05 million BTC.
- Governments: 644,329 BTC.
- ETFs and Exchanges: 1.54 million BTC.
Selling activity was minimal, with companies offloading only 39 coins during the month.
Rising Financing Costs Impact Corporate Strategies
Funding challenges have intensified as share valuations compress and risk premiums rise. This has forced companies to use costly preferred-share offerings or credit lines instead of cheap equity issuance. The shift includes a focus on capital-efficiency tools, such as share buybacks, rather than large, recurring Bitcoin purchases.
Protecting Asset Metrics Amid Market Challenges
Corporate executives noted that these measures are aimed at protecting bitcoin-per-share metrics and countering declining market-to-NAV valuations that have burdened stock prices throughout the year.
Structural Tightness and Long-Term Investment Trends
The buildup in corporate holdings has contributed to Bitcoin’s structural tightness and rangebound price action, particularly as short-term holders exit the market. Analysts told Decrypt that public companies now represent 5% of Bitcoin’s illiquid supply, a figure expected to grow to 42% of the circulating supply by 2032.
Divergence Between Slow Inflows and Record Holdings
With treasuries, long-term investors, and low-spending entities forming the core of Bitcoin's holders, the current divergence between slower inflows and record holdings suggests a cautious waiting period. The corporate Bitcoin sector appears to be anticipating renewed investor appetite before making further significant moves.