Bitcoin Supply Squeeze? Corporate Buying Quadruples Mining Output

Data indicates companies and funds are aggressively accumulating Bitcoin, far outpacing the rate at which miners are adding new coins to the market. This trend could rapidly deplete available Bitcoin, concentrating it in the hands of a few large holders and potentially impacting liquidity.

Institutions vs. Miners: A Growing Imbalance

Reports show a significant disparity between institutional buying and mining output:

• Publicly traded Bitcoin treasury firms and private businesses purchased an average of 1,755 BTC per day in 2025.
• Exchange-Traded Funds (ETFs) and other investment vehicles added roughly 1,430 BTC per day.

Potential Bitcoin Supply Shock

While Bitcoin mining output remains relatively stable, the surge in demand from corporate entities is creating a noticeable imbalance. Analysts suggest that if exchange reserves continue to decline while institutions maintain their buying pace, the market could face significantly tighter conditions. This scenario raises the possibility of a supply shock, where demand far exceeds available supply.

The implications of such an imbalance are twofold. Some market observers believe it could trigger a bullish price surge due to increased scarcity. Conversely, others caution that diminished liquidity on exchanges could lead to heightened price volatility if buying trends were to reverse.

Key Players and Bitcoin Holdings

In Q2 2025 alone, Bitcoin treasury companies acquired 159,100 BTC. Collectively, businesses now hold over 1 million BTC.

Strategy, under the leadership of Michael Saylor, is a prominent example. Publicly available data reveals that Strategy holds 632,457 BTC in its corporate reserve, solidifying its position as a major Bitcoin holder.

'Synthetically' Halving Bitcoin

Adam Livingston, author of “The Bitcoin Age and The Great Harvest,” argues that Strategy’s aggressive Bitcoin accumulation is effectively “synthetically” halving the cryptocurrency. By removing a substantial amount of Bitcoin from circulation and holding it long-term, Strategy is reducing the available supply for traders and investors.

This activity creates a similar supply-side effect to a traditional protocol halving event, albeit through a different mechanism. The reduced availability of Bitcoin can influence market dynamics and potentially drive price appreciation.

Purchase Strategies Matter

Shirish Jajodia, Strategy’s corporate treasury officer, has stated that the company mitigates the impact of its purchases on short-term prices by executing them over-the-counter (OTC). This approach helps to avoid sudden price fluctuations on exchanges.

Demand Dwarfs Mining Output

Currently, companies and funds are acquiring over 3,000 BTC daily, while miners are only producing approximately 450 BTC. This significant difference underscores the growing demand for Bitcoin among institutional investors and corporations.

Even with OTC purchases aimed at reducing immediate price impact, data suggests that this rapid accumulation could trigger a supply squeeze. As exchange reserves dwindle, the potential for sharper price swings in the Bitcoin market remains a distinct possibility.