According to Clark Moody’s dashboard and Bitcointreasuries.org data, as of November 20, the companies own approximately 842,229 BTC, or 4.54% of the total bitcoin supply. This is $ 15.3 billion at the current price of $ 18,200.

Public companies and institutional investors are constantly accumulating bitcoins. The spark that started with MicroStrategy Corporation in an ambitious $ 425 million Bitcoin (BTC) acquisition has led to widespread institutional frenzy over the dominant cryptocurrency.

Why are companies getting bitcoins now?
The demand for bitcoin from companies and organizations is likely to be driven by their growing reputation as a digital store with value.

Bitcoin is unique in its ability to hedge inflation, just like gold, but it has the potential to grow exponentially.

Hedging funds are usually stagnant and have low volatility over a long period of time. It is intended to serve as insurance for a diversified portfolio so that the portfolio is protected in a low market.

Bitcoin when both; It can act as a hedge and also expose investors to significant long-term up-potential.

As such, Michael Saylor, CEO of MicroStrategy, said that Bitcoin should not be seen as a payment network or currency.

BTC is very convincing as a stockpile, which also does not put it in the eyes of regulators. Sailor, referring to an interview with Jay Clayton, chairman of the US Securities and Exchange Commission (SEC), said that BTC is not a guarantee:

This is why #Bitcoin does not have to be a currency or a payment network. The principles of humility and harmony dictate that we must allow technology partners to pay and trust governments for currency issues. BTC is a purely developed store with value.
As long as institutions and companies perceive Bitcoin as a sustainable store of value, the demand for Bitcoin is likely to remain strong.

An orange pill-saving technique for businesses.
Today, companies own about 4.5% of the Bitcoin supply, which is about 18.5 million BTC. This percentage is relatively high considering that the total fixed supply of BTC is 21 million.

If you look at the lost or unused coins, the sum is estimated at around 17 million.

Companies that buy Bitcoin as equity, such as MicroStrategy, are particularly bullish, as they show that they do not expect a return in the short term.

Consequently, when companies have BTC with a low time setting, it can also reduce the sales pressure over time by reducing available offers.

For example, on August 11, when MicroStrategy announced its first $ 250 million purchase of Bitcoin, Sailor said:

“MicroStrategy has recognized Bitcoin as a legitimate cash-strapped investment vehicle, making Bitcoin the dominant asset in the Treasury strategy.”
The outlook for inflation and consistent liquidity injections from central banks strengthen the outlook for Bitcoin in the medium and long term, which some analysts see as the ideal environment for Bitcoin to recover over time.

Meanwhile, to compensate for the negative effect of the financial market pandemic, regulators continue to create comfortable economic conditions. For storing value such as gold and bitcoin, this trend will be favorable in early 2021.

Source: CoinTelegraph

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