Will a large purchase of BTC by enterprises cause it to deflate?

Author: Martin Young, CoinTelegraph; Translated by: Tao Zhu, Jinse Finance

Recent research shows that, so far this year, companies are the largest net buyers of Bitcoin, surpassing exchange-traded funds (ETF) and retail investors.

According to Bitcoin investment firm River, companies like Michael Saylor's Strategy have purchased more Bitcoin this year than any other category of investors. Strategy's data shows that the total amount of Bitcoin held by enterprises has increased by 157,000 Bitcoins, valued at approximately $16 billion at current prices.

The company reported on May 12 that Strategy contributed 77% of the group's growth on X, adding that this is not just about large companies.

"We see companies from all walks of life signing contracts with River. They are optimistic about Bitcoin and how it will change their future," the company pointed out.

River reported that the second largest category after corporations is ETFs, with a net holding of 49,000 bitcoins valued at $5 billion. It was reported that governments followed closely, with bitcoin holdings increasing by about 19,000, while retail or individual bitcoin holdings decreased by 247,000 this year.

Changes in BTC ownership in 2025. Source: River

The company stated that since 2024, overall business ownership has increased by 154%, and it has been broken down by the categories of its clients' businesses.

The company revealed that financial and investment firms are the largest buyers of the asset, accounting for 35.7% of total buyers, followed by technology companies at 16.8%, professional and consulting firms at 16.5%, and the remaining buyers are in real estate, non-profit organizations, consumer and industrial sectors, healthcare, as well as energy, agriculture, and transportation companies.

Recently, companies have made several large acquisitions, such as Strategy purchasing 13,390 bitcoins for $1.34 billion, and Metaplanet increasing its holdings by 1,241 bitcoins in its treasury, surpassing El Salvador in holdings on May 12.

New forces entering the Bitcoin market in 2025 include the video streaming platform Rumble, which purchased Bitcoin for the first time in March, the Hong Kong construction company Ming Shing, and the Hong Kong investment firm Hong Kong Asia Holdings Limited.

Bitwise reported in April that at least 12 publicly traded companies made their first purchases of Bitcoin in the first quarter of 2025. The company added that during this period, the number of Bitcoins held on the books of public companies increased by 16%, with more than 95,000 Bitcoins added to corporate portfolios.

Is Bitcoin Heading Towards Deflation?

Analysts say that the purchases of Bitcoin by these large enterprises will put pressure on supply and demand, as the supply is limited and miners can only produce 450 Bitcoins a day.

CryptoQuant CEO and market analyst Ki Young Ju stated that the Strategy for increasing Bitcoin holdings is faster than the total output of miners, resulting in an annual deflation rate of -2.3%.

Meanwhile, writer Adam Livingston recently stated that Strategy is synthetically halving Bitcoin by having high demand exceeding the supply from miners.