Investors Betting On Bitcoin: How Many?

Bitcoin is a cryptocurrency that was introduced to the public in 2009 by an anonymous developer or group of developers using the name Satoshi Nakamoto. It is a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity. This removes the need for trusted third-party involvement (e.g. a mint or bank) in financial transactions. As of May 2024, the total number of bitcoins in existence was about 19.7 million, with a finite supply of 21 million worldwide.

Bitcoin has become increasingly popular among investors and speculators due to its growing value and volatility. Its popularity has also inspired the development of many other cryptocurrencies. As of March 2024, there were just over 46 million Bitcoin wallets holding at least $1 in value, with around 50 million people owning Bitcoin.

Some of the top investors in Bitcoin include businesses such as Binance, Grayscale, MicroStrategy, Marathon Digital Holdings, and Tesla.

Who are the top investors in Bitcoin?

While the top Bitcoin investors are no longer individuals, here are some of the top investors in Bitcoin:

Businesses

• Binance and Grayscale are believed to hold the most bitcoin, after the accounts believed to belong to Satoshi Nakamoto.
• MicroStrategy is a prominent business analytics platform that has adopted Bitcoin as its primary reserve asset. As of May 2025, it holds 214,400 BTC in reserve, equivalent to $14.8 billion.
• Marathon Digital Holdings Inc. is a Bitcoin mining company that holds 17,631 BTC in its corporate treasury (worth around $1.23 billion as of May 2024).
• Tesla joined the ranks of companies holding Bitcoin in December 2020, with an SEC filing revealing that the company invested "$1.50 billion" in Bitcoin. As of May 2024, the company holds 9,720 BTC in its portfolio (worth around $677 million).
• Hut 8 Mining Corp is a Bitcoin mining firm that holds 9,109 BTC, worth around $644 million.
• Riot Platforms, Inc., a crypto mining outfit, holds 9,084 BTC, worth $643 million.
• Coinbase Global, Inc., a crypto exchange, held $230 million in Bitcoin on its balance sheet ahead of its public listing in April 2021. By June 2024, it held 9,000 BTC in its treasury, worth just under $642 million.
• Galaxy Digital Holdings is a crypto-focused merchant bank that holds 8,100 BTC, worth just under $578 million as of June 2024.
• Block (formerly Square) lit the fuse for institutional investment in Bitcoin with its October 2020 investment of $50 million. By June 2024, the firm held 8,027 BTC, worth around $573 million.
• CleanSpark is a U.S. Bitcoin mining firm that holds 6,154 BTC, worth around $439 million as of June 2024.
• Bitcoin Group SE is a Germany-based venture capital firm that holds relatively modest holdings of 3,830 BTC, worth $275 million.

Individuals

• Satoshi Nakamoto, the anonymous creator of Bitcoin, is rumoured to be the person who holds the most bitcoin, with around 1.1 million bitcoins (more than $68 billion at May 2024 market prices).
• Michael Saylor, CEO of MicroStrategy, holds 17,732 BTC personally, worth over $1.2 billion.
• Chamath Palihapitiya, venture capitalist, engineer, and founder and CEO of Social Capital, was an early investor in Bitcoin and, at one point, personally held roughly 5% of the circulating supply.
• Tyler and Cameron Winklevoss, founders and CEOs of Gemini, a cryptocurrency exchange and custodian.
• Tim Draper, founder of Draper Associates, a Silicon Valley venture fund, and Draper University, a not-for-profit entrepreneurship school. He received attention after buying 30,000 Bitcoins seized from the Silk Road website.

How many people own Bitcoin?

It is impossible to know the exact number of people who own Bitcoin due to its decentralised nature. However, estimates suggest that there are around 50 million Bitcoin owners worldwide. This figure is based on the number of unique addresses, with just over 46 million Bitcoin wallets holding at least $1 in value as of March 2024.

However, it is important to note that one person can have multiple addresses and wallets, so the number of owners could be lower than this estimate. Additionally, most of the wallets are inactive or hold minimal value. Less than half of the 46 million wallets (21.5 million) with any value are worth more than $100, and around a quarter (22.2%) hold over $1,000.

A Crypto.com study from late 2022 estimated that there were 219 million Bitcoin holders globally, while a 2023 estimate put the number at 106 million. Coinbase claims to have more than 68 million accounts, while Blockchain.com states it has 76 million wallets.

The number of people who own Bitcoin has likely increased over time, with just 14 active Bitcoin wallet addresses in 2009, increasing to over 54,000 by 2012, and surpassing 1.2 million at its peak in April 2021.

How do beginners invest in Bitcoin?

Investing in Bitcoin can be daunting for beginners, especially given its high-risk and volatile nature. However, if you are interested in investing in Bitcoin, here is a step-by-step guide to get you started:

Step 1: Understand the Basics

Before investing in Bitcoin, it is important to understand what it is and how it works. Bitcoin is a type of cryptocurrency or virtual currency that uses virtual "coins" or "tokens" instead of physical cash. It is decentralised, meaning it is not issued, backed, or regulated by a central authority like a government, and its value is highly dependent on market demand.

Step 2: Assess the Risks

Bitcoin is a very high-risk and volatile investment. Its value can rise or fall dramatically in a short period, and it has no intrinsic value as it is not backed by any physical asset. Therefore, it is crucial to carefully assess your risk tolerance and ensure that you only invest what you can afford to lose.

Step 3: Choose an Exchange

To purchase Bitcoin, you will need to use a cryptocurrency exchange such as Coinbase, Binance, Kraken, Gemini, or Bitfinex. These exchanges act as middlemen, facilitating Bitcoin transactions. Compare the features of each exchange, including security, fees, trading volume, and the types of cryptocurrencies available, before deciding which one best suits your needs.

Step 4: Get a Bitcoin Wallet

Once you have chosen an exchange, you will need to get a Bitcoin wallet to store your coins. There are two types of wallets: hot wallets and cold wallets. Hot wallets are operated by your exchange or a provider and are convenient for accessing your coins online. However, they are less secure. Cold wallets, on the other hand, are physical hardware devices that store your coins offline and are considered safer.

Step 5: Connect Your Wallet to a Bank Account

To purchase Bitcoin, you will need to link your wallet to your bank account. This will enable you to buy and sell coins. Alternatively, you can link your bank account directly to your cryptocurrency exchange account.

Step 6: Place Your Bitcoin Order

When you are ready, you can place your Bitcoin order through your chosen exchange. You don't have to buy a whole coin, as exchanges often allow you to buy fractions of a coin. Remember to consider your budget, risk tolerance, and investment strategy when deciding how much Bitcoin to purchase.

Step 7: Manage Your Bitcoin Investments

After purchasing Bitcoin, you can use your coins for online transactions, hold them for the long term, or perform day trading. Remember that Bitcoin is a volatile asset, so carefully monitor your investments and be prepared for potential losses as well as gains.

Tips for Beginners:

• Start small: If you are unsure, start with a small investment and gradually increase it as you become more comfortable.
• Diversify your portfolio: Invest in a variety of assets, not just Bitcoin, to minimise risk.
• Do your research: Thoroughly research Bitcoin and the chosen exchange before investing.
• Be cautious of scams: Bitcoin and cryptocurrency, in general, are prone to scams and "pump-and-dump" schemes, so always be vigilant.

In conclusion, investing in Bitcoin can be a complex and risky endeavour, especially for beginners. It is important to thoroughly understand the risks and potential pitfalls before investing and to only invest what you can afford to lose.

How do public companies buy Bitcoin?

Public companies have been buying Bitcoin since 2020, with cloud software company MicroStrategy being the first to do so. As of June 2024, public companies holding Bitcoin account for just under 1.5% of the total supply of 21 million BTC.

Public companies can buy Bitcoin directly from cryptocurrency exchanges such as Coinbase, which is also a publicly traded company that holds Bitcoin. They can also use Bitcoin exchanges, which allow users to swap other cryptocurrencies for Bitcoin. Additionally, some companies have chosen to invest in Bitcoin technology and develop Bitcoin mining operations, which enable them to earn Bitcoin.

Some public companies have chosen to adopt Bitcoin as their primary reserve asset, while others hold it as part of their corporate treasury. For example, MicroStrategy, a prominent business analytics platform, has aggressively pursued a Bitcoin buying spree, scooping up millions of dollars worth of the cryptocurrency. As of May 2025, the company holds 214,400 BTC in reserve, equivalent to more than 1% of the total number of Bitcoin that will ever be issued.

Other public companies with significant Bitcoin holdings include Marathon Digital Holdings, Hut 8 Mining Corp, Riot Platforms, Inc., and Coinbase Global, Inc. These companies are primarily focused on Bitcoin mining or providing crypto-related services.

The decision to embrace Bitcoin by public companies often stems from the conviction of senior leadership, including founders and CEOs. Their support for Bitcoin, whether driven by industrial or ideological reasons, has led to their companies adopting the cryptocurrency.

What are the risks of investing in Bitcoin?

Investing in Bitcoin and other cryptocurrencies is becoming increasingly popular. However, there are some serious risks to be aware of before investing. Here are the key risks of investing in Bitcoin:

Volatile and Fluctuating Market

The price of Bitcoin is constantly changing and can fluctuate wildly. This makes it difficult for investors to build confidence and secure gains. The price volatility is influenced by sentiment, speculation, and market manipulation. As a result, there is no guarantee of a return on investment, and investors need to be vigilant in monitoring the market to avoid significant losses.

Cyber-Security Risks and Fraud

Bitcoin and other cryptocurrencies are vulnerable to cyberattacks and fraud due to their technology-dependent nature. Hacking is a serious risk, as there may be no way to retrieve lost or stolen Bitcoins. Additionally, fraudulent exchanges and fake online transactions can dupe unsuspecting investors out of their Bitcoins. The lack of security and the prevalence of cyber threats pose significant risks to investors.

Little or No Regulation

The Bitcoin market currently operates with minimal to no major regulations, as it is a relatively new concept for governments and financial authorities. The lack of regulation can lead to uncertainty and potential future restrictions that may impact the value of Bitcoin. The absence of taxation, while enticing for investors, could also lead to problems if Bitcoin is seen as competition for government-issued currency.

Technology Reliance and Digital Security

Bitcoin is entirely reliant on technology, with no physical collateral backing it up. As a result, investors are more vulnerable to cyber threats and online fraud. Additionally, the digital nature of Bitcoin means that lost or misplaced private keys may result in the permanent loss of access to one's Bitcoin holdings.

Block Withholding and Central Authority Concerns

The process of creating new Bitcoins through solving "blocks" of mathematical equations can be manipulated by mining pools, who can withhold blocks from honest miners. This allows a select few to benefit while others miss out. Furthermore, the lack of a central authority backing Bitcoin's value can lead to legal complications and uncertainty for investors.

In summary, while Bitcoin offers an attractive investment opportunity, it is essential to approach it with caution due to the various risks outlined above. These risks include market volatility, cyber threats, regulatory uncertainty, technology reliance, and issues related to central authority. Investors should stay informed, make small investments, and take necessary precautions to secure their funds.

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