Recently, market data shows that many companies and funds have an astonishing rise in demand for Bitcoin, far exceeding the supply capacity of miners. If this trend continues, the circulating Bitcoin in the market may quickly decrease and become concentrated in the hands of a few large buyers.

It seems that now is a good time for institutions to invest money in coins! According to reports, publicly traded Bitcoin treasury companies and some private enterprises are purchasing an average of about 1,755 Bitcoins daily by 2025. Moreover, various exchange-traded funds and other investment tools are also absorbing about 1,430 Bitcoins each day.

This situation has led to a potential supply shock. Although miners' output remains relatively stable, the market dynamics change when demand exceeds supply by multiples. If exchange reserves continue to decrease while institutions continue to hold long-term, the market situation may become even tighter. Analysts predict that such an imbalance could create some degree of upward pressure on prices. However, some also warn that once the flow of funds reverses, the low liquidity of exchanges could lead to price volatility.

It cannot be ignored that some companies are absorbing Bitcoin at an astonishing rate. Data shows that in the second quarter of 2025, Bitcoin warehouse companies acquired 159,100 Bitcoins. This means that these companies now hold a total of over 1 million Bitcoins.

The strategy company is a buyer that cannot be underestimated. From publicly available information, we know that the strategy company holds 632,457 Bitcoins, making it one of the largest single holders in the market. Adam Livingston mentions in his work, "Through rapid accumulation, the strategy company has almost achieved a 'synthetic halving' of Bitcoin, and the impact on long-term capital costs could be profound."

The purchasing method of the strategy company is also worth noting. Company CFO Shirish Jajodia stated that to avoid short-term price fluctuations, the company adopts an over-the-counter trading method for procurement, rather than purchasing directly on the exchange order book.

In summary, the supply of Bitcoin in the market is rapidly decreasing, while demand far exceeds the daily supply from miners. Companies and funds are purchasing over 3,000 Bitcoins daily, while miners are only producing 450 per day. Data from River shows that even if over-the-counter trading reduces short-term price impacts, rapid accumulation may still trigger supply tightening, and with exchange reserves becoming thin, future prices may face more severe volatility.

Image source: Unsplash, chart from TradingView.
Disclaimer: For reference only, past performance does not guarantee future results.