Institutional investors are rapidly buying bitcoins, and at the time of writing, nearly 3% of bitcoins (BTC) in circulation are held by these investors for a long time.

The data shows that 24 entities have hoarded more than 460,500 BTC, which is equivalent to 22 billion U.S. dollars based on the current price of Bitcoin.

According to Michael Novogratz, this figure does not include the 3 million permanently lost BTC. He estimated that if the institution maintains the current crazy buying, a supply shortage may soon appear.

Current Bitcoin holding institutions include: MtGox KK, which holds nearly 141690 BTC (6.6 billion US dollars); Block.one, which is estimated to hold 140,000 BTC (6.5 billion US dollars); MicroStrategy, which holds approximately 71,000 BTC (3.3 billion US dollars) ); Tesla bought 38,500 BTC (about 1.8 billion US dollars) this week.

Analysts now expect that the allocation of some assets to Bitcoin will soon become the standard for companies, because there are multiple technical reasons to consider Bitcoin as an inflation hedging tool.

First of all, the supply of Bitcoin in circulation is limited, which is similar to the value storage function of gold. In addition, there is no way to accelerate the new supply of Bitcoin through additional mining.

Large-value holders further reduce the circulation supply of Bitcoin by buying large amounts of Bitcoin from the market and storing it in cold storage. This long-term holding culture of most cryptocurrency participants reduces the already small supply and forms a vicious circle.

For savvy CFOs, the allocation of some assets to Bitcoin can provide some regulatory hedging and arbitrage, because the government cannot freeze funds.

Regarding Tesla’s decision to buy Bitcoin, what is surprising is the timing of the purchase, because this decision occurred after the BTC price increased by 250% in four months.

随着机构持有3%的BTC流通供应,比特币继续迈向主流

Market value ranking of companies, cryptocurrencies and metals Source: 8marketcap.com

Tesla’s move this week has caused Bitcoin to surpass Tesla in market value, and Bitcoin ranks ninth among all tradable assets.

In the past, buying Bitcoin may have been considered an incredibly bold move, but now it has become common sense among institutional investors.

According to a rough estimate, the assets of global companies are about 10 trillion U.S. dollars, and 3% of the funds (equivalent to 300 billion U.S. dollars) are allocated to Bitcoin, accounting for about one-third of the total value of Bitcoin’s cash flow.

Considering that more than 60% of the Bitcoin supply has not changed for more than a year, for an asset with a freely circulating supply of $355 billion, an inflow of $300 billion is almost unimaginable.

In addition, there are 341,640 newly born bitcoins each year, which is only $16.3 billion. Therefore, we can safely draw the conclusion that the stable allocation of Bitcoin to corporate assets may more than double the current price of Bitcoin.

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