In the evolving cryptocurrency landscape, corporate Bitcoin adoption is creating new market vulnerabilities. This trend, while boosting Bitcoin's price, introduces potential risks, according to recent analysis.
As of May's end, 110 publicly listed companies globally hold Bitcoin, a significant institutional commitment. Standard Chartered's analysis of 61 companies, excluding miners and exchanges, reveals they owned nearly 674,000 bitcoins, or 3.2% of Bitcoin's total supply. These "Bitcoin treasuries" have doubled holdings in two months, adding almost 100,000 bitcoins.
However, many newer corporate entrants bought at higher average prices, unlike MicroStrategy. Approximately half the monitored corporate treasuries would be underwater if Bitcoin fell below $90,000. This could lead to forced selling during market downturns.