Businesses are gobbling up Bitcoin at a rapid rate

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More and more companies are holding Bitcoin on their balance sheets. In fact, companies that do exactly that represent a significant portion of bitcoin mined, and this could be of long-term benefit for exchange-traded funds, including the VanEck Vectors Digital Transformation ETF (DAPP).

DAPP, which is one of this year’s entry-level ETFs, is an equity-based fund, but many of its 25 member companies are more reliant on Bitcoin and Ethereum price action than broader equity benchmarks. . This is relevant in an era of increasing business adoption of crypto.

New data from Bitcoin Treasuries confirms that companies own 1.66 million bitcoins, or nearly 8% of the supply. The hardest cap on the production of the largest digital currency is around 21 million.

MicroStrategy leads the way with 108,991 bitcoins held, or about half of the total supply, which is 75% of the total market capitalization of the software intelligence firm, reports Bitcoin Magazine.

MicroStrategy is such a devoted buyer of bitcoin that the company has repeatedly issued corporate debt to increase its holdings in the digital currency. The title is DAPP’s fourth with a weight of 6.41%, according to data from the issuer.

In terms of corporate Bitcoin ownership, Elon Musk’s Tesla (NASDAQ: TSLA) is number two behind MicroStrategy. The electric vehicle maker is not a member of the DAPP lineup, but several of the next largest Bitcoin-owning companies are.

The electric car maker is followed by Square, Marathon Digital Holdings and Coinbase. The fintech payment solutions company holds just over eight thousand BTC, while bitcoin miner MARA has allocated 5,425 bitcoins to its balance sheet. Coinbase, America’s largest exchange, closes the top five with a shy bag of 4,487 bitcoins, according to Bitcoin Magazine.

Marathon Digital, the crypto exchange operator, Coinbase and Square are DAPP’s three main holdings, accounting for nearly 27% of the fund’s weight.

Hut 8 Mining (NASDAQ: HUT) and Riot Blockchain (NASDAQ: RIOT) are also among the top Bitcoin business owners. These stocks combine for more than 10% of the DAPP list.

What’s remarkable about business adoption of Bitcoin in this form is that it is a new phenomenon. Adding Bitcoin to a balance sheet is a very 2020-2021 idea, indicating that more growth could be achieved on this front, potentially benefiting DAPP in the process.

As more companies realize what Bitcoin really is and its unique possibilities in the years to come, the race is expected to intensify significantly, further drying up supply in the market. And although they may not realize it, the Bitcoin plebs can profit from stacking sats consistently at lower prices, adds Bitcoin Magazine.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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