Cryptocurrencies represent innovative financial assets that exist exclusively in the virtual space and employ different mechanisms than fiat for issuance, storage, and transfer. As such, it’s often difficult for the average individual to gain a proper understanding of how the market functions and the dynamics that dominate this ecosystem. We know that the crypto sector has grown tremendously in recent years – a fact highlighted by the appreciation in the BTC price – attracting a mounting influx of traders and investors looking to get in on the action and grab a piece of this promising asset class. As the first and most prominent of all digital currencies, Bitcoin represents the primary target for most market participants.
But since Bitcoin and cryptocurrencies are enabled by decentralized structures based on blockchain technology and don’t rely on the control of conventional central entities – i.e., governments, banks, and other financial institutions – like fiat money, many naturally wonder about the wealth distribution landscape. What happens to the coins after they are mined? 19.8 million BTC out of the total 21 million supply have already been mined, so where did they all go?
As it turns out, Bitcoin ownership is concentrated in the hands of several large holders like Binance and BlackRock. With Bitcoin becoming increasingly popular and accessible and getting closer to mainstream acceptance, one might believe that most of its circulating supply is spread among members of the general public. That might have been the case at one point, but eventually, exchanges, brokerages, and businesses stepped in and started dominating the sector, tilting the balance from retail investors to institutional investors. That’s how a large part of the existing Bitcoins ended up lining the virtual pockets of a handful of entities, also known as whales.
So, if you’re curious about who’s leading the Bitcoin charge, here’s a closer look at the largest BTC holders at the moment.
Satoshi Nakamoto
At the top of the hierarchy, we have a very distinct figure in the crypto space, in the sense that no one really knows who Satoshi Nakamoto is apart from the fact that whoever is behind this pseudonym has been credited with the invention of Bitcoin in 2008. As the founding father of the crypto industry, Satoshi deserves a separate category, since he’s neither an investor nor a company.
But regardless of how one chooses to describe Satoshi, the fact remains that the mysterious Bitcoin inventor holds a massive BTC stash. Although the exact number of coins that Satoshi amassed during the years he was active is not known since his entire existence is wrapped in a mystery, researchers have put in the effort to track down addresses associated with him. According to their calculations, Nakamoto is said to own between 750,000 and 1,100,000 coins, which would place this enigmatic figure in the lead of crypto holders.
Binance
Next up we have Binance, a resounding name in the crypto investing landscape considering it’s the largest cryptocurrency exchange in the world in terms of daily trading volume. So, it should come as no surprise that Binance is also the company with the largest Bitcoin holding.
Official data shared by the company on its Proof-of-Reserves page reveals that Binance owns no less than 650.074 BTC as of November 25, 2024. It’s assumed that the supply held on exchanges belongs to retail investors in large part, which paints a more nuanced picture of Bitcoin ownership and wealth distribution. This means that BTC ownership might not be as concentrated as some believe since an exchange address should not be confused with an individual account, and one address can hold the funds of many users.
BlackRock iShares
BlackRock’s iShares Bitcoin Trust (IBIT) was among the first batch of spot Bitcoin ETFs approved by the U.S. Securities and Exchange Commission. As the world’s largest asset manager, BlackRock’s foray into crypto attracted a lot of attention from investment circles from all over the globe.
In the months following the approval, BlackRock established a substantial Bitcoin holding, amassing over 359,278 by the latest data. In October 2024, the iShares Bitcoin Trust registered over $23 billion in total net inflows, making it the most successful Bitcoin ETF product to date.
Grayscale
Grayscale is known as a trailblazer in crypto investing, being one of the first companies to provide investors with direct access to Bitcoin-related products via their Grayscale Bitcoin Trust ETF (GBTC). As of October 2024, Grayscale’s Bitcoin exchange-traded fund held 220,713.5 BTC, offering interested investors’ exposure to Bitcoin’s price movements while saving them the trouble of handling administrative procedures like storage and management.
The product started out as a Bitcoin trust, which was converted into an ETF in January 2024, when the SEC gave the green light for 11 spot BTC ETF applications from Grayscale and other asset managers. Although the company experienced substantial outflows immediately after the transition, it managed to preserve its position as one of the top Bitcoin holders among asset managers.
MicroStrategy
MicroStrategy is a business intelligence firm whose co-founder and CEO is Michael Saylor, an American entrepreneur and business executive known for being an outspoken supporter and advocate for Bitcoin.
Saylor’s unconventional views on crypto, often expressed via social media platforms or at industry conferences, have made a lot of waves in the finance world, as have his decisions to turn MicroStrategy into a leading corporate Bitcoin holder through subsequent purchases of the asset. As of September 2024, MicroStrategy owned 252,220 BTC, as a result of its years-long accumulation strategy.
Final Thoughts
Despite its turbulent history, Bitcoin remains a sought-after asset, the most coveted of all digital currencies, which makes its distribution a much-discussed topic that often attracts conflicting opinions. Although the current data indicates a concentration of Bitcoin supply in the hands of a few powerful players, with Bitcoin being a highly volatile instrument, like all other cryptocurrencies, this dynamic might suffer notable changes in the future.