If you are a bitcoin holder or you have stocks in MicroStrategy or Square and So .. you must be aware that the price of all the above assets has risen dramatically, some of them to an all-time high.
I am holding around 2.5 BTC and some stocks in MicroStrategy, the price a month before was struggling to pass standard candles and that made me a little worried. But this rise brings me to share my research about this new bitcoin investment strategy of public institutions.
So far 14 Companies collectively have reserved 67,695 Bitcoins that simply is 2.85 % of the total supply, 21 million. ( Greyscale 2.5% + others 0.3 % ).
Listing some companies who reserved bitcoin assets.
Its all Began from here
Microstrategy, a business software services company bought a total of 38,250 bitcoin worth $425 million in total in two phases.
Phase 1 :
Buy : Apporx 21904 BTC ( $11500 / BTC)
Then value : $250 million ( 11-08-2020 )
Growth : Nearly 20 %
Current Value: $ 251.8 million ( 29-10-2020 )
Phase 2 :
Buy : Approx 17156 BTC ( $10,200 / BTC)
Then value : $175 million ( 10-02-2020 )
Growth : nearly 25 %
Current Value: $231.6 million(29-10-2020 )
The effects of this purchase
- With the total reserve, the value rises from $425 to $500 million.MicroStratergy has gained nearly 20 percent of revenue.
- When CEO Micheal Saylor announced the first round of Bitcoin purchase their stocks jumped from $122 to $152 in just a couple of days
- And, in the second phase purchase announcement, the stock value touched an all-time high of $176 / Stock on September 10, 2020.
- With the profits that shot up drastically, the President of MicroStratergy Phong Li said that the company would invest all their extra money in Bitcoin in the third phase.
Interesting Fact: MicroStrategy CEO, Micheal Saylor himself owns 17,732 BTC which he had bought well before the company holdings at an average price of $9882.
American financial service merchants and a mobile payment gateway platform, Square announced their Bitcoin acquisition.
Buy : 4709 BTC ( $10617 / BTC)
Then value : $50 million ( 11-09-2020 )
Growth : Nearly 20 %
Current Value: $ 63.5 million ( 29-10-2020 )
The outcome of this purchase
- The company gained more than $13 million in profits in just a span of 45 days.
- The investment rose from $50 million to more than $63 million
- Square’s stock value had already kick-started surging soon after the company included bitcoin services. But now, with the news of Bitcoin holdings, the stock value reached an all-time high.
- The stock value surged to touch near to $190 from around $140
Interesting Fact: As Micheal Saylor, Jack Dorsey is also a Bitcoin holder, but he didn’t reveal the numbers.
One of the largest digital asset management firm Grayscale has grabbed headlines from quite a long time by adding up Bitcoins. In fact, it holds 2.5% of the total Bitcoin supply!! It’s huge!
- The Grayscale Bitcoin Trust holds 456,537 BTC which is nearly 58% of the total BTC held by publicly traded companies.
- Recently on 23 October 2020, it added up a massive $300 million AUM(Asset Under Management) in just one day.
- The total Bitcoin trust AUM is worth $6,032.2 million and total Bitcoin it holds is 456,537.
Interesting Fact: Grayscale CEO Barry Silbert runs the Digital Currency Group, a crypto venture capital firm that has invested in Coinbase, Coindesk, and Ripple.
The other publicly traded companies also incurred profit in recent times, however, they are holding bitcoin well before MicroStrategy or Square.
There are total 15 publicly traded companies, 3 private companies and 5 ETF’s that hold Bitcoin in there treasury. The publicly traded companies include,
- Galaxy Digital Holdings
- Hut 8 Mining Corp
- Voyager Digital Ltd
- Riot Blockchain, Inc
- Bit Digital, Inc
- Coin Citadel Inc
- Advanced Bitcoin Technology
- Hive BLockchain
- Cyberpunk Holdings Inc
- BIGG Digital Assets Inc
- Argo Blockchain
- FRMO Corp
Private Companies and ETF’s include
- Block one
- The Tezos Foundation
- Stone Rigde Holdings Group
- Grayscale Bitcoin Trust
- Coinshares/ XBT Provider
- 3iQ The Bitcoin Fund
- ETC Group Bitcoin ETP
- 21 shares AG
Bitcoin is now what they say “ The Real Money” rather than only an asset which can be used only as an investment.