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Bitcoin’s decentralization is increasingly challenged as centralized entities, including institutions and governments, now control over 30% of its circulating supply.
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Mercurity Fintech’s ambitious plan to raise $800 million for a Bitcoin treasury highlights growing institutional integration and confidence in BTC as a strategic asset.
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According to a recent Gemini and Glassnode report, more than 75% of Bitcoin’s transfer volume flows through centralized platforms, marking a significant shift from its peer-to-peer origins.
Bitcoin’s growing centralization with institutions holding over 30% supply and Mercurity Fintech’s $800M treasury plan signal a new era in BTC’s financial integration.
Mercurity Fintech and Evertz Pharma Lead Institutional Bitcoin Treasury Initiatives
Mercurity Fintech Holding Inc., a US-listed company, recently unveiled plans to raise $800 million to establish a long-term Bitcoin treasury reserve. This move aims to transition a portion of its corporate treasury into Bitcoin, integrating it within a blockchain-native digital reserve system designed for yield generation and balance sheet resilience.
The company’s strategy includes deploying institutional-grade custody solutions, liquidity protocols, and staking-enabled capital efficiency tools, reflecting a sophisticated approach to managing Bitcoin as a strategic asset. CEO Shi Qiu emphasized, “We’re building this Bitcoin treasury reserve based on our belief that Bitcoin will become an essential component of the future financial infrastructure.”
This announcement coincides with Mercurity’s preliminary inclusion in the Russell 2000 Index, potentially increasing institutional investor exposure and confidence. Following the news, Mercurity’s stock experienced a notable surge, underscoring market enthusiasm for firms embracing Bitcoin integration.
In Europe, Evertz Pharma, a German cosmetics company, has also made headlines by becoming the first German firm to hold strategic Bitcoin reserves. Having started Bitcoin accumulation in December 2020, Evertz Pharma recently purchased an additional 100 BTC, valued at approximately €10 million ($11.5 million). The company cites Bitcoin’s scarcity, storage-free nature, and inflation-hedging properties as superior to traditional reserve assets like gold.
“Bitcoin is a strategic component of our stable business vision,” the company stated, highlighting the growing recognition of Bitcoin as a corporate treasury asset across diverse industries.
Centralized Entities Now Control Over One-Third of Bitcoin Supply
A comprehensive report by Gemini and Glassnode reveals that centralized treasuries—including governments, ETFs, and publicly traded companies—now hold 30.9% of Bitcoin’s circulating supply. This milestone underscores the increasing institutionalization of Bitcoin, transitioning it from a primarily retail-driven asset to one embedded within traditional financial frameworks.
Moreover, the report highlights that over 75% of Bitcoin’s adjusted transfer volume occurs via centralized exchanges, US spot ETFs, and regulated derivatives platforms. This trend marks a significant departure from Bitcoin’s original peer-to-peer (P2P) transactional model, reflecting a maturation and integration into regulated financial markets.
Institutional dominance has contributed to a decline in Bitcoin’s annualized realized volatility since 2018, fostering more stable price dynamics. Analyst IncomeSharks commented, “We replaced exciting volatility with boring stability, just what the suits and institutions wanted,” illustrating the trade-off between speculative appeal and institutional adoption.
President Donald Trump’s executive order in March to explore a US Strategic Bitcoin Reserve further cements Bitcoin’s evolving role within sovereign finance, signaling governmental recognition of BTC’s macroeconomic potential.
Gemini’s analysis suggests that each dollar invested by institutional entities could generate up to $25 in short-term market capitalization expansion and approximately $1.70 in long-term structural value, emphasizing the significant market impact of institutional Bitcoin accumulation.
Implications of Increasing Centralization on Bitcoin’s Decentralized Ethos
The growing concentration of Bitcoin holdings among centralized institutions presents a paradox for the cryptocurrency’s foundational principles. While institutional adoption legitimizes Bitcoin as a strategic macro asset, it simultaneously places pressure on the network’s original ethos of decentralization.
Market participants express mixed sentiments; some view this institutional wave as a necessary evolution for Bitcoin’s mainstream acceptance, while others lament the potential erosion of its peer-to-peer, censorship-resistant nature. One user on X remarked, “There once was a dream that was Bitcoin… this is not it,” reflecting concerns about the centralization trend.
As TradFi players deepen their involvement, the risk of centralized control intensifies, potentially undermining Bitcoin’s design to empower individuals over institutions. This tension between growth and decentralization remains a critical narrative as Bitcoin continues its integration into the global financial system.
Conclusion
Bitcoin’s trajectory toward institutional adoption is unmistakable, with centralized entities now controlling a significant portion of its supply and transfer volume. Initiatives like Mercurity Fintech’s $800 million Bitcoin treasury and Evertz Pharma’s strategic reserves exemplify this shift, signaling Bitcoin’s transition from a retail-centric asset to a mainstream financial instrument.
While this evolution enhances Bitcoin’s legitimacy and stability, it also challenges its decentralized foundations, raising important considerations for the future governance and ethos of the network. Stakeholders must balance the benefits of institutional integration with the imperative to preserve Bitcoin’s core principles, ensuring its continued role as a resilient and accessible digital asset.
