Bitcoin Scarcity Trade Shifts as Institutional Adoption Expands

Capital B is building a Bitcoin treasury by converting traditional capital-market funding into direct Bitcoin purchases. The company has acquired over $309 million in BTC at an average cost of €87,854 per coin and plans to continue buying more.

The U.S. government has also established a Strategic Bitcoin Reserve, which is governed by a no-sale policy. This reserve primarily consists of Bitcoin obtained through government forfeitures rather than market purchases, making it a source of potential scarcity in the market.

However, experts caution that simply assuming every institutional Bitcoin holding is permanently removed from circulation overlooks the complexities of corporate financing structures. Companies like Capital B can raise capital and enter the market to acquire BTC, creating active demand.