Global cryptocurrency derivatives exchange BitMEX has increased its Bitcoin reserves by approximately seven times in the first half of this year. The exchange’s Bitcoin balance has surged from around 1,200 BTC at the start of the year to over 8,500 BTC recently, marking the highest level in two years.
The company explained, “We expanded holdings to meet rising institutional custody demand and secure liquidity,” adding that it plans to strengthen Bitcoin-backed lending and institutional services in the second half. As derivatives trading volumes have declined, BitMEX has shifted toward holding more spot Bitcoin to reinforce liquidity.
In the first half of the year, BitMEX’s Bitcoin holdings were valued at about $500 million, while competing exchanges Binance and OKX also modestly increased their reserves during the same period. However, market analysts warn that while increased holdings can amplify profits during price rallies, they also raise the risk of valuation losses and liquidity pressures during downturns.
Since facing regulatory action by the U.S. Commodity Futures Trading Commission (CFTC) in 2020, BitMEX’s trading volumes declined sharply. More recently, the company has focused on recovering institutional clients and launching new services. Its Bitcoin-backed lending products and institutional custody solutions are seen as major growth drivers. A BitMEX spokesperson said, “Securing stable liquidity is our top priority as we work to regain market share and strengthen client trust.”
According to blockchain analytics firm CryptoQuant, BitMEX’s derivatives trading volume dropped about 15% over the past three months, while its Bitcoin reserves steadily increased. This trend reflects a more proactive liquidity management strategy amid market volatility.
Some observers have raised concerns that larger spot holdings by exchanges could fuel price manipulation controversies. However, industry insiders note that “if stricter regulatory oversight and transparent auditing are applied in parallel, expanding reserves could contribute to overall market stability.”
