Bitcoin Treasury Supply Reaches New High with 4M BTC Locked Away

• Bitcoin treasuries have crossed 4 million BTC, and institutions continue to expand their holdings.
• Treasury companies face rising pressure as leverage unwinds, according to Galaxy Research.

The global Bitcoin treasury has increased to over 4 million BTC, reinforcing a larger trend of structured and regulated exposure. ETFs and investment vehicles have become the largest form of institutional demand, representing 1.49 million BTC, according to CryptoRank.

Their growth reinforces the position of fund-based access, which continues to attract mainstream participation despite high volatility remaining. Corporations have amassed 1.06 million BTC, and more companies are now considering the asset as a strategic component.

Governments have increased their holdings to 655,000 BTC, adding another layer to the continuous reduction in supply. Their reserves are a result of enforcement seizures and opportunistic accumulation. Meanwhile, on-chain demand remains stable, as DeFi protocols and smart contracts manage 376,000 BTC. Additionally, private companies and custodial platforms maintain smaller but relevant positions, according to Cryptorank. 

Bitcoin Treasury Companies Enter A Pressure Phase

Treasury-focused Bitcoin businesses are facing a structural reckoning. Galaxy Research said digital asset treasury businesses have entered a “Darwinian phase” as equity valuations fell below Bitcoin’s net asset value. That disconnect caused a reversal in the expansion that the issuance had fueled with rapid growth.

The downturn intensified after Bitcoin fell from its October high above $126,000 to lows near $80,000, eroding risk appetite and accelerating market-wide deleveraging. Open interest collapsed, spot liquidity thinned, and leveraged trading unwound at a rapid pace. The October 10 washout broke the feedback loop that allowed treasury firms to raise capital at premiums and accumulate more Bitcoin.

Equities that used to represent a leveraged exposure to BTC are now magnifying the losses. Galaxy said while financial engineering amplified the impact of volatility on both sides of the cycle, the downside impact is far more visible now as liquidity tightens. Treasury companies are now under pressure to make their business models work without the valuation gap, which, in the past, supported expansion.

Bitcoin Treasury Firm Advances Toward Public Listing

Momentum within the treasury segment has been accelerated following the shareholder approval of Twenty One Capital, Inc.’s business combination with Cantor Equity Partners. CEP’s vote in favor of the merger clears the way for final regulatory steps, with closing around December 8. 

Upon completion, this combined entity will trade under the Twenty One Capital name. Its Class A common stock is expected to start trading on the New York Stock Exchange on December 9 under the ticker XXI. The firm is positioning itself as the first Bitcoin native company to come to public markets and is looking to enter capital markets to channel credibility and access to capital in traditional financial channels.

Despite these pressures, Bitcoin has experienced a minor resurgence. It is up about 2.5% on the week, trading above $93,000 after a sharp intraday recovery early Monday. Nevertheless, its price is still 26% lower than its all-time high price in October.