- Institutional investors are increasingly buying up Bitcoin.
- Several major firms have collectively purchased hundreds of millions of dollars worth of the cryptocurrency.
- They include investment funds holding Bitcoin on behalf of investors, and companies that have bought Bitcoin as a reserve asset.
In the last few months, reports that major institutional investors are scooping up crypto bull run since 2017.in droves have added fire to what can now be considered the biggest
Several major firms have collectively purchased hundreds of millions of dollars worth of Bitcoin, while retail interest in Bitcoin has also skyrocketed—sending the new all-time high.to a
As Bitcoin continues its meteoric growth, we take a look at the companies who are stockpiling the cryptocurrency—both on behalf of investors as funds, and as a reserve asset.
Publicly traded companies
These publicly-traded firms have adopted Bitcoin as a reserve asset, and hold direct control over their Bitcoin funds.
MicroStrategy, a prominent business analytics platform, has adopted Bitcoin as its primary reserve asset.
In December 2020, the firm—which produces mobile software and cloud-based services—capped off a year of Bitcoin buys by scooping up $650 million in BTC. It now holds 70,470 BTC in reserve—equivalent to over $2.4 billion in BTC. At one point, MicroStrategy CEO Michael Saylor said, he was buying $1,000 in Bitcoin every second.
Unlike other CEOs who typically shy away from discussing their personal investments, Saylor has made it public that he personally holds 17,732 BTC—currently worth over $616 million.
As per data from BitInfoCharts, this positions Saylor among the top 100 Bitcoin owners—assuming it is all held within a single address. It’s something of an about-face for the MicroStrategy CEO, who in 2013 claimed that Bitcoin’s days were numbered.
On New Year’s Eve, 2020, Morgan Stanley revealed that it’s purchased 10.9% of MicroStrategy. And MicroStrategy is looking to get other companies invested in Bitcoin; in February 2020, it’s hosting Bitcoin for Corporations, an online course aimed at getting companies up to speed with the crypto asset.
Galaxy Digital Holdings
Crypto-focused merchant bank Galaxy Digital Holdings holds 16,402 BTC, according to bitcointreasuries.org—worth just over $564 million at current prices.
Founded by Michael Novogratz in January 2018, the company has partnered with crypto firms including Block.one and BlockFi. Novogratz is, unsurprisingly, a keen advocate for Bitcoin. In April 2020, he noted that stimulus measures announced in response to the coronavirus pandemic were driving interest in cryptocurrencies, calling it Bitcoin’s “moment” and arguing that “money doesn’t grow on trees.”
However, later in the year Novogratz argued that the cryptocurrency’s volatility meant that gold was a safer bet, stating that, “My sense is that Bitcoin way outperforms gold, but I would tell people to hold a lot less than they do gold. Just because of the volatility.”
These investment funds don’t hold Bitcoin on their own behalf, instead doing so in order to enable accredited investors to gain exposure to Bitcoin without holding or managing the cryptoasset directly.
Grayscale Bitcoin Trust
is undoubtedly one of the biggest names in the Bitcoin space—and for good reason.
Grayscale has by far the largest Bitcoin portfolio of any institutional investment platform, with over $21 billion in BTC currently under management in the Grayscale Bitcoin Trust, which trades under “ “. In total, Grayscale Investments now holds more than 2% of the Bitcoin total supply, with 572,644 BTC currently under management according to bitcointreasuries.org.
GBTC stock price today
Grayscale founder Barry Silbert is (unsurprisingly) an outspoken Bitcoin advocate and can be frequently found on Twitter highlighting its performance. In January 2020, Silbert stepped down from his role as CEO of the company, handing over the reins to former Barclays analyst Michael Sonnenshein.
CoinShares Group, one of the earliest pioneers in digital asset investments, also joins the list of public companies managing substantial Bitcoin assets.
The company is widely regarded as a pioneer in the cryptocurrency investment industry, and was the first firm to launch a regulated Bitcoin hedge fund and exchange-traded Bitcoin product. Nowadays, CoinShares offers two exchange-traded Bitcoin products: Bitcoin Tracker One and Bitcoin Tracker Euro—both of which can be traded on XBT Provider AB.
As of November 2020, CoinShares’ assets under management include 69,730 BTC—currently worth just over $2.4 billion. Though not quite as impressive as Grayscale’s almost a half a million BTC strong coffers, CoinShares investment still represents over 0.3% of the current Bitcoin circulating supply.
“Investors used to consider it a risk to allocate to Bitcoin. Now it’s a risk not to allocate to Bitcoin,” said CoinShares CEO Jean-Marie Mognetti in a recent press release.
Ruffer Investment Company
London-based asset manager Ruffer Investment Company is one of the most recent firms to join the Bitcoin bandwagon. In December 2020, it allocated 2.5% of its Multi-Strategies Fund to Bitcoin, arguing that the cryptocurrency serves as a “small but potent insurance policy against the continuing devaluation of the world’s major currencies.”
Ruffer’s bet seems to have paid off; its 45,000 BTC, worth around $870 million at the time of purchase, is now worth nearly $1.8 billion.
3iQ The Bitcoin Fund
Canadian crypto-asset portfolio manager 3iQ holds 16,454 BTC, worth just over $566 million, according to bitcointreasuries.org. Following several years of back and forth with regulators, 3iQ’s Bitcoin fund was listed on the Toronto Stock Exchange (TSX) in April 2020, enabling Canadians to invest in Bitcoin through their regulated investment managers. The Winklevoss twins’ exchange Gemini acts as custodian for the fund.
In September 2020, the regulated BTC fund was listed on the Gibraltar Stock Exchange. “We expect to co-list this fund around the world in major exchanges,” 3iQ President and CEO Fred Pye told Decrypt. “Our vision is for this to be the biggest regulated Bitcoin fund in the world.”
3iQ is also behind a Canadian dollar-backed stablecoin called QCAD, which launched in February 2020.
CI Galaxy Bitcoin Fund
Unlike some of Galaxy Digital’s funds, such as Galaxy Institutional Bitcoin Fund, its CI Galaxy Bitcoin Fund, launched in November 2020, isn’t restricted to institutional firms in America. Instead, the Canadian fund is open for investments from the general public.
The CI Galaxy Bitcoin Fund invests directly in Bitcoin; its holdings are priced using the Bloomberg Galaxy Bitcoin Index, which is designed to measure the performance of a single Bitcoin traded in US dollars. As investors purchased “Class A” and “Class F” units, priced at $10 each, Galaxy Digital allocated to the purchase the equivalent amount in Bitcoin from its own holdings.
It began trading on the Toronto Stock Exchange in December 2020; at the time, Bitcoin was worth just over $19,000, making the fund’s 15,750 BTC worth just over $306 million. Today, it’s shot up to over $618 million.
Grayscale Digital Large Cap Fund
Grayscale’s Bitcoin Trust isn’t the only way for its clients to gain exposure to Bitcoin through its investment vehicles. It also runs the Grayscale Digital Large Cap Fund, an open-ended fund that give investors exposure to a basket of large-cap digital assets.
The fund is currently made up of Bitcoin, January 2021). That Bitcoin amounts to some 7,036 BTC, currently worth nearly $279 million., and , with the lion’s share of the fund composed of Bitcoin (81.6% as of
That weighting has changed slightly, owing to the removal of XRP from the fund in January 2021, with Grayscale selling all its XRP and topping up the other cryptocurrencies in the fund’s basket.
For Big Investors, the Recent Bitcoin Drop Presents More Buying Opportunities
Bitcoin has fallen deeply into a state of oblivion. Once trading for well over $64,000, the world’s number one digital currency by market cap has lost nearly $20,000 in value since last month and is presently trading for just over $47,000.
Bitcoin Is Still Being Bought Up
Among many analysts is an attitude of gloom and doom. Some consider the end of bitcoin to be near, while other largescale investors – such as Michael Saylor of MicroStrategy fame – think that this is the perfect opportunity to add more bitcoin to their private and company stashes and buy up.
Saylor has recently come out and admitted that not long after Elon Musk announced his company would not be accepting BTC payments for goods and services, his company purchased another $15 million worth of the digital asset. The recent dip can likely be attributed to Musk’s sudden dismissal of BTC payments, which a lot of people in the crypto space were relying on.
This was going to be a major push forward in the world of BTC. It would be seen as a legitimate and mainstream method of payment considering such a huge, billion-dollar company would allow its usage alongside fiat and credit cards.
Sadly, it does not look like this is going to pass, and bitcoin has suffered as a result, but for people like Saylor, the present conditions offer more opportunities to take advantage of. In a tweet, Saylor announced his company’s recent purchase:
MicroStrategy has purchased an additional 271 bitcoins for $15 million in cash at an average price of about $55,387 per bitcoin.
Thus far, the company has accumulated nearly $2.5 billion in BTC over the past nine months according to a filing with the Securities and Exchange Commission (SEC). MicroStrategy was one of the first major institutions to pledge public support to bitcoin and initially began buying the asset in August of last year.
While Saylor looks at the recent situation as something positive for men like himself, others are expressing disdain with Elon Musk and the fact that he is constantly saying things that have large effects on bitcoin and its competing altcoin cousins.
Maybe It’s Time to Think Before You Talk
Dennis Kelleher – CEO of Better Markets in Washington – explained to reporters:
The problem here is that a loose cannon CEO continues to shoot his mouth off about any number of potential market-moving events. It is clearly grossly irresponsible, but it may not be illegal.
For the most part, there is no evidence supporting the idea that Musk does what he does or says what he says on purpose. It could be that he just simply does not realize his power within the industry yet. However, perhaps it is time he takes a breather and really thinks about his next steps regarding crypto, as it clearly has an effect on the rest of us.
Litecoin Price Prediction: LTC/USD Goes Bearish on a Correctional Note
LTC Price Prediction – May 17
Currently, a downward correctional move is ongoing at a higher pressure in the LTC/USD market activities. The US currency forces its worth on the crypto since May 10 while the base instrument hit resistance around a high value of $400. With about a 10.07% reduction presently in the crypto market, price now trades at around the level of $266.
Resistance levels: $320, $360, $400
Support levels: $240, $220, $200
LTC/USD – Daily Chart
The LTC/USD daily chart showcases a heavy downward price correctional movement as most of the vital support trading levels breached to the downside. An intense bearish candlestick is being formed in the space between the SMAs. That has led to the breaking down of the bullish trend-line and the 14-day SMA trend-line to the south. The 50-day SMA indicator is being approached by current falling pressure at the immediate support value of $240. The Stochastic Oscillators are now in the oversold region slightly pointing to the south within it. That still calls for placing position with cautiousness as there may soon be a change of trend in no time.
Will the LTC/USD current fall-off reach for support of $240?
Going by the current pace at which the LTC/USD market operations as regards the downward correctional moves, it is most likely that bulls will await price to either closely average or briefly touch past the immediate support level of $240 before considering launching a pull-up. That said, a bullish candlestick formation is needed to back up a reliable return of an upward move at that trading zone.
On the account of contradiction, as regards the market’s upside, bears would now have to consolidate their stance in the market to forcefully break down the $240 support level in a continuation southward pushes to see through some lower support trading lines. The smaller SMA indicator may not play along with the furtherance of downswing at the first instance of heightening pressure.
LTC/BTC Price Analysis
As of writing, the comparison trading capacity outlook between LTC and BTC as shown on the chart depicts that the counter instrument has only been able to hold back the base tool in a convergent trading cycle at higher zones. Yet, the trend is having it to favor of LTC as placed with BTC. The 14-day SMA trend-line and the bullish trend-line are over the 50-day SMA. And, they are all underneath the cryptos’ trading point. The Stochastic Oscillators have slantingly moved into the oversold region with a brief-pointing posture to the south. That indicates that the possibility that the base instrument may soon begin a push further to the north.
Iranian government to penalize crypto miners using household power
The Iranian government has now warned of hefty fines for those who will be caught mining cryptocurrencies using power intended for domestic use.
This after authorities registered a significant spike in electricity consumption for digital currency mining, further straining the already stressed hydropower generation caused by insufficient rainfall in the country this year.
The government said the illegal mining operations for virtual currencies that rely on electricity intended for households cause transformers to be overloaded, damaging the power grid. According to Tehran Times, Iranian Ministry of Energy spokesperson Mostafa Rajabi Mashhadi said unauthorized miners “will be fined when identified and held responsible for the damages they cause to the electricity network.”
Mining rapidly expanding in Iran
Back in 2019, the Iranian government legalized cryptocurrency mining, classifying it as an industrial activity.
In 2020, over 1,000 mining licenses were issued by the Ministry of Industry, Mining, and Trade, and power companies were provided with an avenue to increase their profits through meeting the industry’s power demands.
Selling electricity to cryptocurrency miners was seen as an option to fill the gap between revenues and expenditures in the electricity industry. However, with the current energy crisis being faced by the country, this move is now also being questioned.
Power consumption through the roof
Per the latest available data, the cryptocurrency mining sector in Iran consumes up to 1,500 megawatts of electricity each day. Back in December, this figure only sat at 300 megawatts. Authorities revealed that only around 200 megawatts of the current average daily consumption are legal.
Chinese companies have taken advantage of low and subsidized electricity prices in Iran to establish mining operations in the country’s Special Economic Zones.
The Ministry of Industry, Mines, and Trade estimates around $660 million worth of cryptocurrency is mined annually by unlicensed facilities in Iran.
Image courtesy of Cointelegraph News/YouTube
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