Unparalleled Growth
Bitcoin’s price has experienced unparalleled growth since its inception in 2009, transforming from a digital experiment into a globally recognized asset.
Initially trading for mere cents, Bitcoin surpassed $1,000 in 2013, shocking early skeptics. The bull run of 2017 saw it peak near $20,000 before a sharp correction, only to reach new heights in subsequent cycles.
By 2021, Bitcoin had surged past $60,000, driven by institutional adoption, corporate treasury allocations, and macroeconomic uncertainty.
In 2024, Bitcoin reached the historic milestone of $100,000, driven by the approval of spot ETFs and further boosted by the election of a pro-Bitcoin Trump administration.
Despite volatility, Bitcoin's long-term trajectory has been overwhelmingly bullish, consistently outperforming traditional assets. Its fixed supply of 21 million coins creates scarcity, fuelling its narrative as “digital gold”.
As global inflation concerns grow, Bitcoin's role as a store of value continues to attract both retail and institutional investors. Between 2015 and 2025, Bitcoin's average annual return was approximately 77%, significantly outperforming traditional assets such as the NASDAQ 100.
Bitcoin Outperforming the NASDAQ 100 (Source: TradingView)
Bitcoin is increasingly viewed as an attractive portfolio diversifier due to its low correlation with traditional assets like stocks and bonds. Its price movements often do not follow those of conventional investments, reducing overall portfolio risk.
Bitcoin’s decentralized nature and fixed supply make it a potential hedge against inflation and economic downturns. As more institutional investors incorporate Bitcoin into their portfolios, its role as a non-correlated asset enhances its value as a diversification tool.
Institutional Validation
The evolution of Bitcoin's institutional adoption marks a significant shift from being a niche asset to an established macro asset class. Bitcoin’s growing market cap has positioned it as the 9th largest asset by market capitalization on the 31st of March 2025.
In Q4 2024, BTC surpassed $2 trillion in value, and briefly overtook silver. This milestone underscores Bitcoin’s maturation as a credible alternative investment, comparable to traditional assets like gold and silver.
Bitcoin the 9th largest asset by market capitalization at the end of Q1 2025 (Source: CompaniesMarketCap.com)
According to Yahoo Finance, more than 600 financial institutions, including giants such as Morgan Stanley, JPMorgan, Wells Fargo, UBS, BNP Paribas, and the Royal Bank of Canada, have invested billions in the US spot Bitcoin ETF.
These investments suggest a clear shift in institutional sentiment towards Bitcoin, transitioning from a speculative asset to a core component of diversified portfolios. Additionally, major companies like Tesla and Strategy (formally MicroStrategy) have adopted Bitcoin as part of their treasury strategy, using it to hedge against currency devaluation, further validating Bitcoin’s role as a store of value.
Bitcoin Holdings End of Q1 2025 (source: HeyApollo & HODL15Capital)
US listed spot Bitcoin ETFs are being offered by financial giants like BlackRock, Fidelity, VanEck, WisdomTree and Greyscale. But Bitcoin’s growing institutional adoption extends beyond just ETFs.
Shareholders in major public mining companies now include some of the most recognized names in finance, such as BlackRock, Citigroup, and Vanguard, reflecting the Bitcoin mining asset’s integration into mainstream financial markets.
Regulatory Momentum and Strategic Reserves
Increasing regulatory clarity and crypto-friendly policies are becoming key factors in the growth and mainstream adoption of Bitcoin and other digital assets. As governments and regulatory bodies around the world develop clearer frameworks, they help reduce uncertainty for investors and businesses operating in the digital asset space. This clarity has fostered trust and encouraged institutional involvement, as companies and financial institutions can more confidently navigate the legal landscape.
Several countries have built substantial Bitcoin strategic reserves through strategic investments, law enforcement seizures, mining operations, and forward-thinking economic policies. These holdings underscore the growing role of digital assets in global finance, with some nations using Bitcoin to diversify their national reserves and strengthen economic initiatives.
At the start of Q2 2024, the U.S. leads with the largest Bitcoin reserves, holding 207,189 BTC, followed by China with 194,000 BTC and the UK with 61,000 BTC. In a move to further solidify the country’s position, President Trump signed an executive order establishing a strategic Bitcoin reserve, aiming to bolster the nation's economic and technological resilience
In the UK, lawmakers are still deliberating whether to hold, liquidate, or utilize these assets. Meanwhile, the Bank of England is exploring how to incorporate Bitcoin reserves into future financial frameworks, signaling the growing recognition of Bitcoin’s potential as a strategic asset.
President Trump signing an executive order establishing a strategic Bitcoin reserve (Source: X)
This evolving trend suggests that Bitcoin could be seen not only as a digital asset but as a fundamental part of global finance, reshaping how governments and institutions approach monetary policy and reserves in the future. The continuous institutional influx into Bitcoin, coupled with its growing market cap, points to its evolution from a speculative commodity to a respected, investable macro asset class.
The Rise of Nation-State Bitcoin Mining
Bitcoin mining is the foundation of the Bitcoin network, securing the system, validating transactions, and maintaining its decentralized infrastructure.
Miners use specialized hardware called ASICs to solve complex mathematical problems, adding new blocks to the blockchain. In return for their work, miners are rewarded in Bitcoin, reinforcing the network’s durability and security.
Governments around the world have increasingly become involved in Bitcoin mining, both directly and indirectly, as they increasingly recognize its potential to support national economies, diversify reserves, and boost energy infrastructure.
El Salvador made global headlines in 2021 by becoming the first country to adopt Bitcoin as legal tender. The government also initiated Bitcoin mining operations using renewable energy. The Bhutanese government uses Bitcoin mining as a way to harness the country’s abundant hydropower resources. Bitcoin mining has become a way to diversify the country’s income streams.
Ethiopia has also adopted Bitcoin mining as part of its broader strategy to boost economic growth and leverage its abundant, low-cost renewable energy resources.
The country has significant hydropower potential, which has drawn attention from Bitcoin miners looking to benefit from cheap and clean energy which resulted in over 600MW of build-outs in 2024.
YPF, Argentina’s state-run energy giant, has taken steps to integrate Bitcoin mining into its operations, leveraging its gas-powered energy production to supply mining facilities.
This initiative aligns with a broader strategy by both the Argentine government and private sector to utilize Bitcoin mining as a means to generate revenue, capitalize on excess energy, and support economic growth amid the country’s ongoing financial crisis.
Similarly, Oman has emerged as a key mining hub in the Middle East, attracting over a billion dollars in investment to build Bitcoin mining infrastructure.
Geothermal power plant near El Salvador’s Tecapa volcano (source: APnews)
These are just a few examples of governments actively embracing Bitcoin mining as part of their economic and energy strategies.
As Bitcoin and mining continue to gain institutional traction, we can expect more governments and large-scale investors to recognize their strategic value—reshaping energy markets, financial systems, and the broader digital asset landscape.
To explore how GoMining Institutional provides access to Bitcoin mining as a yield-bearing strategy, visit GoMining Institutional.
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Nico Smid, GoMining Institutional Research Analyst.
April 2, 2025
