Bitcoin: the institutional rush is in full swing

Despite the recent Bitcoin correction, the Bitcoin institutional rush continues to strengthen.

Bitcoin, the treasury of the future

The top 100 of listed companies now holds 990,695 BTC, or 108 billion dollars. At this rate, it is difficult to see why Bitcoin would not reach the million dollars by 2035.

Here are the top 5 main purchases of the past week:

• Strategy: 3,081 BTC (USA);
• Metaplanet: 1 009 BTC (Japan);
• Boyaa Interactive: 290 BTC (Hong Kong);
• Convuno: 155 BTC (Japan);
• Smarterwebuk: 45 BTC (England);

Purchases of the only Top 5 are greater than the natural offer of Bitcoin which is 3,150 bitcoins per week!

That's not all. There are also unlisted companies on the stock market. This is the case with Tether, Block, SpaceX and dozens of others. Add the States and we reach 3.68 million Bitcoins worth more than $ 400 billion belonging to more than 310 entities.

We are witnessing a real institutional rush on Bitcoin since the launch of ETFs, a little over a year ago. There is almost no longer a day without a new company throwing itself into the water.

In addition, strategies have evolved far beyond simple occasional allowances, as was the case for Tesla. We are witnessing the emergence of ingenious capital structures that allow companies to increase their exhibition to Bitcoin.

From convertible bonds to preferential actions, methods are refined as Bitcoin is obvious for cash managers. What was initially a media shine turned into a sophisticated financial architecture game.

Strategy paved the way by creating a multitude of financial products that allowed him to accumulate more than 600,000 bitcoins. Other companies follow suit. Companies like XXI, Metaplanet or the French Capital B and the Sequan semiconductor manufacturer adopts the same strategy:

What is the “BTC strategy”?

How do the most daring companies finance their bitcoin acquisitions exactly? This goes more and more well beyond a simple cash allowance. Here is an overview of the main methods used:

• Ordinary action issuance

Companies like Strategy, Empèry Digital, Semler Scientific and Semantix issues new actions to raise funds quickly. Strategy, for example, has raised several billion in this way since 2020. This method however dilutes existing shareholders and can weigh on the course of action so poorly calibrated.

• Emission of convertible and preferential bonds

StratumRiot Platforms and Iris Energy also issue convertible obligations, a hybrid between debt and capital. These loans, convertible into term actions, limit immediate dilution while supporting the accumulation of bitcoin.

Strategy widely used this lever to structure its initial cash. Some of its preferential shares offer a fixed dividend of 10 % per year, without voting rights.

• Treasury mobilization

Companies like Sequans or Volcon draw from their excess liquidity. Simple, but limited, this choice avoids dilution and debt, but misses a small lever effect and faster accumulation.

Let’s finish by recalling that Trump Media & Technology Group has raised around $ 2.5 billion to invest in Bitcoin thanks to the sale of $ 1.5 billion in ordinary shares and $ 1 billion in convertible bonds from around fifty institutional investors.

The funds were used to create Bitcoin cash. The company revealed in July that it had acquired approximately 2.5 billion dollars in Bitcoin and other titles. The exact amount allocated to Bitcoin was not explicitly detailed.

This rush is probably not unrelated to the fact that Donald Trump promised to make the United States the “world superpower of bitcoin”.