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Argo blockchain, Bitcoin reserve assets, bitcointreasuries.org, Coinshares, corporate Bitcoin adoption, Grayscale Bitcoin Trust, Hut 8 Mining, Jack Dorsey, Michael saylor, Microstrategy Inc, Mike Novogratz, Square Inc.
When Microstrategy Inc. bought Bitcoin for $425 million in the past two months, this decision became an important sign that the agency recognized the top cryptocurrency as a mature and safe asset. This American technology company has just used Bitcoin as its main reserve asset to hedge against legal inflation. Now, it seems that major companies around the world are following Microstrategy’s Bitcoin strategy.
The bitcointreasuries.org website is collating bitcoin treasures from publicly traded companies around the world. At the time of writing, there are 13 companies listed on the page. The total supply of these companies is 598,237 BTC, which is 2.85% of the circulating supply. News.Bitcoin.com reviewed some entities.
In this regard, Grayscale Investments may be an unsurprising benchmark. Through the Bitcoin Trust Fund (GBTC), which owns and tracks the price of Bitcoin, this New York-based company currently holds 449,596 BTC, which is currently valued at $5.1 billion, accounting for 2.14% of the total circulating supply of the digital asset. Trust is listed on the OTCQX market and has snapped up 70% of all newly minted bitcoins by 2020, and its investment portfolio has almost doubled in the process.
It is worth noting that Gbtc holds this BTC on behalf of accredited corporate investors. They usually value privacy and the storage of bitcoin’s value vouchers, but do not want to directly gain exposure to the asset. When Grayscale’s Bitcoin Trust was launched in 2013, it “became the first publicly quoted securities to fully invest in the price of Bitcoin and derive value from it.” The company operates ten crypto investment products for institutional investors. Funds include Ethereum (ETH), Bitcoin Cash (BCH), zcash, XRP, etc.
Grayscale may be a pioneer, but it is Microstrategy that has attracted all the headlines in recent weeks. The NASDAQ-listed company develops mobile software and provides cloud-based services. In August and September, it purchased $425 million worth of Bitcoin, becoming the largest reserve asset of BTC Microstrategy.
The multi-billion-dollar US company currently owns 38,250 BTC, a move that marks an increase in the company’s adoption rate. At the current exchange rate, the value of the investment portfolio exceeds 433 million U.S. dollars, an increase of 8 million U.S. dollars. This is done in the context of increased stimulus spending and global legal tender trouble. Microstrategy CEO Michael Saylor is particularly optimistic.
He said: “This investment reflects our belief that Bitcoin is the most widely used cryptocurrency in the world, a reliable store of value and an attractive investment asset, with longer-term appreciation potential than holding cash. .”
Corporate adoption may not yet be considered a trend, but the news that Jack Dorsey’s Square Inc. transferred 1% of its total assets to Bitcoin suggests that this may be increasing. On October 8, the mobile payment company listed on the New York Stock Exchange announced that it had spent $50 million to purchase 4,709 bitcoins. Square Chief Financial Officer Amrita Ahuja said, “Bitcoin may become a more common currency in the future.”
Therefore, the company intends to “as its (Bitcoin) adoption rate grows, we intend to learn and participate in a disciplined manner. For a company that develops products based on a broader future, this investment It’s a step from that step.” Bitcoin responded positively to Square’s news, soaring 8% in the past 72 hours, from $10,500 to more than $11,300. Square has a market value of over 83 billion US dollars and provides software and hardware payment solutions. In 2019, the company reported revenue of $4.7 billion. It has offices in the United States, Canada, Australia, Japan and the United Kingdom.
Coinshares Ltd is a UK-based investment fund that focuses on direct and indirect exposure to Bitcoin and other cryptocurrencies. The company manages more than $1 billion in digital assets, of which Bitcoin accounts for nearly 80%. According to bitcointreasuries.org, Coinshares currently holds a total of 69,730 BTC, valued at US$790 million, on behalf of investors.
Through its subsidiary XBT Provider, Coinshares provides two global trading Bitcoin and Ethereum exchange-traded notes (ETN), namely Bitcoin Tracker One and BTC Tracker Euro) and Ethereum (Ether Tracker One and ETH Tracker Euro) . The Nasdaq Nordic Stock Exchange in Stockholm, Sweden, and retail investors can buy the tool, but the product was hit when the UK financial regulator recently banned the sale of ETN to retail investors in the country.
Several other listed companies are also listed on the Bitcoin Vault website. These include Hut 8 Mining, a Bitcoin miner traded on the Toronto Stock Exchange (TSX), and the Argo blockchain of the London Stock Exchange. Both companies use Bitcoin as part of their reserve assets. By the end of June, Hut 8 held 2,954 BTC, and by the end of September, the Argo blockchain had 126 BTC. Another mining entity, Riot Blockchain, Inc, had 1,053 bitcoins in its reserves in June.
Mike Novogratz’s Galaxy Digital Holdings, listed on TSX, “seeks to institutionalize digital assets and the blockchain space”, holding 16,651 Bitcoins, according to the current market The calculated price is worth approximately US$188 million. The company provides asset management, investment, advisory and trading services and major investments. Voyager Digital Ltd, Cypherpunk Holdings, and DigitalX included listed companies that hold Bitcoin to counter legal inflation.
What do you think of the Bitcoin reserves in public companies? Let us know in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, bitcointreasuries.org
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