Corporate Bitcoin Holdings Estimated at 3.68 Million BTC Worth $428 Billion
Corporate adoption of cryptocurrencies is expanding beyond payments, with businesses integrating them into treasury reserves. A report from Morningstar DBRS indicates this could increase credit risk profiles.
- Approximately 3.68 million BTC (valued at around $428 billion) are held by companies, ETFs, governments, DeFi protocols, and custodians, constituting about 18% of bitcoin’s circulating supply.
- Funds hold 40% of these assets; public companies account for 27%. Strategy (MSTR) alone holds over 629,000 BTC, making up 64% of public-company treasury holdings.
- The report identifies vulnerabilities in corporate crypto strategies: regulatory uncertainty, liquidity challenges during volatility, and exposure to exchange counterparties.
- Heavy reliance on bitcoin could impact liquidity management due to its price volatility.
- Technological and governance issues vary among different tokens, and custody remains a significant security concern.
- Growth in corporate crypto treasury strategies is anticipated, particularly from firms like Strategy and MARA Holdings (MARA).
- Morningstar DBRS warns that concentration, volatility, and regulatory complexities may significantly alter credit market assessments of corporate risk.