Recent on-chain data indicates a significant surge in Bitcoin outflows in different crypto exchanges. According to a tweet on the X platform, almost 100,000 BTC has left exchanges in the last 60 days.

Aggregate data from leading cryptocurrency exchanges showed that investors had withdrawn approximately 98,832 BTC within the past two months. Coinbase led the pack with 32,489 Bitcoin outflows, followed closely by Binance with 46,114, while Bitfinex and Gemini recorded 3,701 and 3,688 outflows, respectively.

The massive Bitcoin outflows from exchanges indicate that investors are likely moving their assets to their wallets or cold storage solutions, adopting the HODL strategy. They could also be putting funds into other investment vehicles like Bitcoin ETFs.

Several factors, including growing investor confidence, increased adoption, and positive developments in the space, may contribute to the surge.

Institutions Adopt Buy-and-Hold Strategy for Bitcoin

Institutions with a bullish outlook on Bitcoin have consistently purchased and accumulated the asset, sticking to the HODL strategy.

For instance, software intelligence company MicroStrategy has aggressively expanded its holdings through targeted investments and treasury management. 

Recently, the company spent $458.4 million out of the $1.01 billion raised from its 0.65% convertible note offerings due in 2028 to purchase 7,420 BTC. The latest purchase brought MicroStrategy’s holdings to 252,200 BTC, about 1.27% of Bitcoin’s circulating supply.

MicroStrategy has acquired 7,420 BTC for ~$458.2 million at ~$61,750 per #bitcoin and has achieved BTC Yield of 5.1% QTD and 17.8% YTD. As of 9/19/2024, we hodl 252,220 $BTC acquired for ~$9.9 billion at ~$39,266 per bitcoin. $MSTR https://t.co/JUtgztpzBu

— Michael Saylor⚡️ (@saylor) September 20, 2024

Earlier this year, Marathon Digital (MARA), one of the largest Bitcoin mining firms, increased its total Bitcoin holdings to more than 20,000 bitcoins. At press time, the firm purchased BTC worth about $100 million, bringing its total holdings to $1.3 billion. In addition, the US-based mining company announced its intention to adopt a long-term hold strategy for the self-mined Bitcoins on its balance sheet, complementing its recent BTC purchase.

According to Fred Thiel, Marathon Digital’s chairman, and CEO, the company returned to its full HODL strategy due to its confidence in Bitcoin’s long-term value and belief that it is the ideal treasury reserve asset globally. They also urged governments and corporations to consider holding Bitcoin as a reserve asset, given its perceived potential for growth and stability.