The amount of Bitcoin owned by public companies has gained significant market share relative to spot ETFs since Microstrategy’s “Bitcoin for Corporations” conference in February 2021.
Amount of Bitcoin at private companies increased
The amount of Bitcoin owned by private companies has increased significantly over the course of 2021. It builds for 2020 surges. In a January 3 tweet, on-chain analyst Willy Woo claimed:
“Public companies that own significant Bitcoin have gained market share from spot ETFs as a way to access Bitcoin exposure in public stock markets.”
This has been more noticeable since MicroStrategy’s “Bitcoin for Corporations” conference on February 3 and 4, 2021. The online seminar aimed to explain the legal considerations for companies looking to integrate Bitcoin into their businesses and reserves. Michael Saylor’s MicroStrategy is a leading business intelligence company. It is known for being particularly bullish on Bitcoin. Microstrategy owns nearly $6 billion in crypto assets. On December 30, Saylor’s company bought another 1,914 Bitcoin worth $94 million. The company has made more than $2.1 billion in profits since its first Bitcoin purchase in August 2020.
Woo was referring to a chart of Bitcoin holdings within ETFs and public company treasuries available for public ownership through stock markets. This was based on crowdsourced corporate treasury data.
Spot Exchange Traded Funds (ETFs) hold Bitcoin. Unlike Futures, where companies buy exposure through contracts from the CME futures market.
Largest market share for Grayscale
The data shows that digital currency asset manager Grayscale has taken the largest market share by landslide. Grayscale will have 645,199 Bitcoin by the end of 2021, taking 71% of the wider market. The holdings of all spot ETFs and corporations totaled 903,988 Bitcoin according to the chart.
MicroStrategy is the largest corporate investor with 124,391 Bitcoin worth approximately $5.8 billion according to BitcoinTreasuries. Tesla, in second place, owns about 43,200 coins worth about $2 billion at current prices.