Public firms buying Bitcoin reduce exchange supply, says Fidelity

Fidelity reports that public corporations are behind the recent decline in Bitcoin held on exchange platforms.

As of now, BTC reserves on exchanges have hit a five-year low, last observed in November 2018.

Fidelity Digital Assets attributes the significant decline in Bitcoin reserves on exchanges—now at a six-year low—to increased accumulation by publicly traded firms in the aftermath of the US election.

“We have seen Bitcoin supply on exchanges dropping due to public company purchases — something we anticipate accelerating in the near future,” Fidelity reported on the X social media platform.

Fidelity has observed a reduction in Bitcoin on exchanges, now down to nearly 2.6 million BTC—the smallest amount recorded since November 2018.

Since November, traders have moved over 425,000 BTC off exchanges, a trend that often signals confidence in holding for the long term rather than frequent trading.

In that same time frame, publicly listed companies have acquired nearly 350,000 BTC, Fidelity revealed.

The Boston-based asset management giant Fidelity Investments, which oversees $5.8 trillion, owns Fidelity Digital Assets.

Established in 2018, Fidelity Digital Assets launched years before cryptocurrency became regarded as an institutional asset class.

The Fidelity Wise Origin Bitcoin Fund, issued by Fidelity, is part of the first group of 11 spot Bitcoin ETFs to gain approval in the U.S.

Fidelity pointed out significant corporate Bitcoin buying, but Strategy, a Bitcoin bank co-founded by Michael Saylor after its shift from business intelligence, has fueled much of the accumulation.

Of the approximately 350,000 BTC purchased by publicly traded companies, Strategy acquired 285,980 BTC, accounting for 81% of the total since November.

On April 21, reports indicated that Strategy acquired 6,556 BTC.

Similar to their U.S. counterparts, publicly listed companies in Asia, such as Metaplanet from Japan and HK Asia Holdings from Hong Kong, have expanded their Bitcoin reserves.

Currently holding 5,000 BTC, Metaplanet plans to double its Bitcoin stash this year, as confirmed by CEO Simon Gerovich.

HK Asia Holdings plans to raise nearly $8.35 million with the aim of increasing its Bitcoin assets.