One thing most people don't realize is that corporations will aim to acquire as much as 25% of Bitcoin's supply alone!
Institutions, generally, can be expected to capture over 40% of the supply and this is likely to happen very quickly.
Beyond Bitcoin, we have assets like Ethereum and Solana, which have also seen rising interests from corporations and other traditional players.
A 25-40% capture of Bitcoin's supply, at current prices, brings corporate holdings to $572.5B – $916B, approximately.
Acquiring 25% of ETH alone will add $109.47B to corporate holdings and there are simply a lot of altcoins that could also make it into several treasuries. Considering that these assets will not remain stagnant in market value through this period of accumulation, treasury values a decade from now could very much be well above $1Trn.
But how can we be sure that this can happen in 10 years?
Corporate cryptocurrency treasuries are emerging as a new class of public companies bridging traditional finance and digital assets, signaling increasing institutional interest in crypto.
Corporate cryptocurrency treasury firms including Strategy, Metaplanet and SharpLink have collectively amassed about $100 billion worth of digital assets, according to a Galaxy Research report released Thursday.
Bitcoin treasury firms hold the lion’s share, with over 791,662 BTC worth about $93 billion on their books, representing 3.98% of the circulating supply. Ether treasury firms hold 1.3 million ETH tokens, worth more than $4 billion, representing 1.09% of the Ether supply, the report said.
Corporate buyers are becoming a key source of Ether liquidity alongside US spot ETH exchange-traded funds, which recently posted 19 consecutive days of net inflows, a record for the products. – Cointelegraph report
In the last 365 days, Strategy has bought 402,291 BTC worth over $46B at current prices.
This means that what's required is just 22x growth in funding over ten years for corporate Bitcoin holdings alone to hit over $1Trn. We can also interpret it as needing just 22 companies as Strategy to raise (or leverage) as much capital as Strategy has over the last 365 days to purchase Bitcoin.
According to Gemini analysis of Strategy's Bitcoin purchases through this period, the company has spent approximately $31.27B buying Bitcoin and that stash is now about 47.5% in profit.
This means that provided the price appreciates, similarly, it takes only 66.55% of funding value of current added stash of Strategy's Bitcoin, yearly for the next decade — which is really the sum raised by Strategy last 365d, to get corporate holdings to achieve $1Trn in Bitcoin treasury holdings.
When we consider other crypto assets like ETH, also attracting several billions, being that it is actively viewed as a major player for future economies, particularly due to its adoption for the tokenization of real world assets and current capture of the stablecoin market, we can expect corporate crypto exposure to be over a trillion dollars in a decade time.
To many, this may seem like a huge overestimation of the value of these ecosystems, but if we carefully look at things like AI funding, which will have significant blockchain integration and really just the fact that commerce is inevitably moving on-chain, so owning a piece of these networks is like owning a piece countries and their economies globally, the estimates now feel small.
Why would corporations not want to have significant exposure that enables them to maximally capitalize on the new trade layer? It would be a great fumble and is unlikely to happen.