Bitwise CEO Hunter Horsley has raised concerns about a looming Bitcoin supply shortage as institutional demand grows at an unprecedented rate. 

According to Horsley, in 2025, 165,000 new BTC tokens are expected to be mined, but public companies alone purchased over 95,000 Bitcoins in the first quarter of the year.

~165,000 new bitcoin will be mined this year

In Q1 alone, public companies alone, bought 95,000 bitcoin

There's simply not going to be enough bitcoin

— Hunter Horsley (@HHorsley) April 30, 2025

This growing gap suggests that the mining rate may not be enough to satisfy the appetite for Bitcoin from institutional investors, potentially leading to a supply shortage. Notably, this shortage could contribute to a massive spike in price, benefiting those who hold the first-born crypto.

Surge in Institutional Bitcoin Purchases

Specifically, the first quarter of 2025 saw an extraordinary surge in Bitcoin acquisitions by public companies. According to an April 14 report by Bitwise, institutional investors’ combined Bitcoin holdings grew by 2.2%, reaching a total value of $56.7 billion. 

Companies are buying bitcoin, Q1 2025 edition. pic.twitter.com/qZc62N8vu5

— Bitwise (@BitwiseInvest) April 14, 2025

Notably, 12 companies purchased Bitcoin for the first time, with some of the largest acquisitions coming from Hong Kong construction firm Ming Shing and the YouTube alternative platform, Rumble. Ming Shing’s subsidiary, Lead Benefit, bought 833 BTC, while Rumble added 188 BTC to its balance sheet in mid-March.

Meanwhile, Tether, the issuer of the USDT stablecoin, made a significant move by purchasing 8,888 BTC on March 31, 2025, for approximately $735 million. This purchase catapulted Tether’s reserve wallet into the sixth spot among the top 100 richest Bitcoin addresses. 

As of April 14, 2025, public companies held a combined 688,000 BTC, which accounts for 3.28% of Bitcoin’s total 21 million supply.

Ongoing Bitcoin Acquisitions

Despite the massive purchases in Q1, some companies show no signs of slowing down in Q2. Strategy (formerly MicroStrategy) has continued to dominate Bitcoin acquisition efforts. 

On April 21, Strategy added 6,556 BTC to its balance sheet, spending $555.8 million on the purchase. This acquisition was funded by proceeds from two at-the-market (ATM) stock offerings. 

Just a week later, on April 28, Strategy made another major purchase, acquiring 15,355 BTC for $1.42 billion. With these acquisitions, Strategy’s total Bitcoin holdings reached 553,555 BTC, cementing its position as one of the largest corporate holders of the crypto.

Federal governments, as well as U.S. states, are also finalizing approvals for strategic Bitcoin reserves. This move further intensifies the competition for Bitcoin, compounding the supply-demand imbalance.