Institutional Demand for BTC Soars Amid Shrinking Exchange Reserves
Businesses and institutional investors are buying Bitcoin at a pace nearly four times faster than new coins are mined, signaling a potential supply squeeze if this trend continues. According to data from Bitcoin financial services firm River, private companies and publicly traded firms purchased an average of 1,755 BTC per day in 2025, while miners produce only about 450 BTC daily.
The buying spree doesn’t stop there. Exchange-traded funds (ETFs) and investment vehicles added another 1,430 BTC daily, and governments purchased around 39 BTC per day, River’s analysis shows. Collectively, these entities are absorbing thousands of BTC each day, pushing exchange reserves to multi-year lows, according to on-chain data provider CryptoQuant.
Institutional Hoarding Raises Scarcity Concerns
Analysts warn that this accelerated demand could create a major supply shock, especially as institutional players continue to hold their coins long-term. “This level of accumulation effectively mimics Bitcoin’s halving effect, only on a much larger scale,” said Adam Livingston, author of The Bitcoin Age and The Great Harvest. He added that leading corporate buyers like Strategy are ‘synthetically halving’ Bitcoin through aggressive accumulation.
River reports that Bitcoin treasury firms acquired 159,107 BTC in Q2 2025 alone, bringing the total business-held supply to approximately 1.3 million BTC. Strategy, led by Michael Saylor, remains the largest holder, controlling over 632,457 BTC in its reserves, according to BitcoinTreasuries data.
Will Prices Skyrocket? Experts Weigh In
Despite these staggering figures, Strategy’s corporate treasury officer, Shirish Jajodia, dismissed claims that such purchases dramatically move the market. “Bitcoin’s trading volume exceeds $50 billion daily,” he explained. “Buying $1 billion worth over a few days through OTC channels does not significantly affect spot prices.”
Still, the underlying math is clear: institutional demand is outpacing supply by a factor of four, making Bitcoin’s scarcity narrative stronger than ever. If exchange reserves continue to dwindle and demand persists, analysts believe a bullish price surge could be inevitable.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.