nickthomas2@benzinga.com
4 min read
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The cryptocurrency landscape has witnessed a significant shift as corporations increasingly adopt bitcoin as a treasury asset. While this trend has contributed to bitcoin’s recent price surge, it may also be creating new vulnerabilities in the market that warrant careful consideration.
Corporate adoption of bitcoin has accelerated notably, with companies following the playbook pioneered by MicroStrategy (NASDAQ:MSTR). According to Bitcoin Treasuries data, 110 publicly listed companies globally now hold bitcoin, representing a substantial institutional commitment to the digital asset.
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Standard Chartered’s analysis focuses on a refined sample of 61 companies that purchase bitcoin purely as a treasury holding, excluding industry participants like miners, exchanges, and service providers. This subset collectively owned nearly 674,000 bitcoins as of May’s end—representing 3.2% of bitcoin’s total 21 million coin supply.
The numbers tell a compelling story: these “bitcoin treasuries” have doubled their holdings over just two months, accumulating close to 100,000 additional bitcoins during this period. This buying pressure has been a key factor driving bitcoin to recent all-time highs.
However, Standard Chartered’s analysis reveals a concerning dynamic that could eventually reverse this supportive trend. Unlike Strategy, which accumulated bitcoin over time at various price points, many newer corporate entrants have purchased at significantly higher average prices.
The bank’s research suggests that approximately half of the monitored corporate treasuries would find themselves underwater if bitcoin fell below $90,000. This creates a potential domino effect where companies that entered the bitcoin treasury strategy during price peaks could become forced sellers during market downturns.
The risk stems from several interconnected factors:
Purchase Price Disparities: Most corporate treasuries in Standard Chartered’s sample have average purchase prices well above Strategy’s cost basis, making them more vulnerable to market volatility.
