Institutional Bitcoin Adoption in May 2021

Institutional Bitcoin adoption continued to rise in May, albeit at a slower rate than in prior months.

MicroStrategy and many public Bitcoin mining companies continue to add to their Bitcoin holdings, but these additions have been offset in part by sales from companies like Tesla and Ruffer.

Declining prices have clearly put a damper on new institutional demand for Bitcoin, but the long-term holders remain undeterred.

A perfect example of this is MicroStrategy's latest debt offering (I'm working on an article that explains this move in detail right now). MicroStrategy is issuing another $500 million of debt to buy Bitcoin, which will mark their largest Bitcoin purchase since February.

This announcement came just days after El Salvador made Bitcoin legal tender, marking the beginning of Bitcoin's nation-state era.

So far, El Salvador has not announced any Bitcoin purchases for their treasury holdings, but they do plan to hold Bitcoin moving forward.

Another interesting institutional trend that emerged this month was the cannibalization of Bitcoin funds by Bitcoin ETFs in Canada. Investors are showing they clearly prefer the ETF structure, and the volatility protection it provides. However, it is still unclear how much Bitcoin ETF adoption can be attributed to organic demand vs. existing Bitcoin fund transfers.

All together, the 53 entities below hold 1,629,750 BTC valued at roughly $60 billion at Bitcoin prices of $37,000.

Since each entity reports changes to their Bitcoin holdings on different schedules, I decided to show the latest available data alongside their Bitcoin purchase history. When new Bitcoin purchases are announced, they will be retroactively added to the month on the chart in which they occurred.

Below is the full breakdown of changes in institutional purchasing behavior for paying subscribers.