The companies across the world who invested in bitcoin in 2020 made the right call, it appears, as the bull run continues. A handful of corporations across the globe now own 1.15 million Bitcoin in their reserves. In the current market, that is more than $30 billion of bitcoin owing to the recent spike in price.
According to data shared by Bitcoin Treasuries, a total of 29 corporations possess 5.48 percent of the total bitcoin supply. Notably, American business data corporation, Microstrategy, which holds more than 70,000 bitcoin ($1.8 billion) leads the institutional bitcoin bandwagon. Microstrategy’s CEO Michael Saylor, believes that the leading cryptocurrency is a better asset class than gold. Saylor who is now a bitcoin bull is acquiring the top crypto asset more than anything.
MicroStrategy owns more BTC than the United States government
Earlier in December, MicroStrategy revealed its plan to acquire more bitcoins through a $400 million bond sale. The bond sale raised $650 million, which was used to purchase another stash of bitcoin as expected. Issuing debt to purchase bitcoin is a bold gamble for a public company. However, Saylor has dismissed all the criticism attracted by the move. MicroStrategy which now holds a total of 70,470 BTC, is currently the fifth major single owner of BTC, one position in front of the United States government which holds 69,420 BTC.
The business intelligence firm joined the cryptocurrency revolution back in August by acquiring 21,000 BTC worth $250 million. Back then, MicroStrategy claimed that its objective was to embrace BTC as a principal reserve currency to hedge against dollar inflation. In September, the firm made a further purchase of BTC worth $425 million via Coinbase’s over-the-counter desk. The most recent purchase was on December 21, when the firm bought 29,646 Bitcoin, worth more than $800 million today.
Companies are investing in crypto assets
Other notable public companies possessing significant bitcoin to include Mike Novogratz financial services firm Galaxy Digital which holds over $448 million; Jack Dorsey’s payments firm Square, with more than $126 million; and mining corporation Hut 8 with about $79 million in BTC.
On the other hand, private companies with significant Bitcoin holdings include MTGOX K.K., formerly a cryptocurrency exchange that possesses $3.8 billion in bitcoin; and New York-based Stone Ridge Asset Management Company which holds $292 million in BTC after purchasing back in October.
Although the $30 billion appears to be a huge amount, most of the corporations listed by Bitcoin Treasures are affiliated with the crypto industry. It will take time for hedge funds across the globe to start purchasing bitcoin.
In recent times, American-based investment companies have taken substantial steps to boost their BTC treasuries. For instance, Guggenheim Partners, an asset management firm based in Wall Street filed an application with the Securities and Exchanges Commission (SEC) in pursuit of a $500 million stake in Grayscale Bitcoin Trust. The latest influx of crypto investments shows that corporations will continue acquiring bitcoin in the future to make the most out of its limited supply.