The year 2021 has seen an immense bull-run of the crypto market, the last time the prices of Bitcoin and other altcoins went high was in 2017 but those prices were nothing compared to what they are right now. The market value of Bitcoin is almost 5 times more than what it was in 2017, this massive increase in the price of the value of Bitcoin has piqued the interest of some key figures and major institutions.
A majority of firms are buying millions of dollars’ worth of Bitcoin as a reserve asset, the main reason behind this is because Bitcoin has proven to be rarely affected by inflation and currency devaluation due to its limited supply. According to research by Messari, about 0.5% of Bitcoin is held by several large firms, this 0.5% sums up to 81,154 BTC.
Here are some major organizations and publicly traded firms that have put their trust in Bitcoin and bought it to serve the purpose of a profitable reserve asset and put it in their corporate treasuries.
One of the leading reasons why the prices of Bitcoin went so high in 2021 is because Elon Musk started giving it a lot of attention and started tweeting about cryptocurrencies in general. The SEC filing then disclosed that the company has made an investment of $1.5 Billion in Bitcoin. It has also been found that Tesla has a cash holding of $19.384 Billion, which means that they have spent about 8% on the currency. Get more information about bitcoinlifestyle.io
Tesla has also improved their investment policy for this purpose and to maximize the amount of Bitcoin in their possession, they are now accepting it as payment.
Microstrategy is widely known for its cloud-based services and mobile software but in 2021 it is observed as one of the companies that have invested heavily in Bitcoin. Between February and March, Microstrategy has purchased about 295 BTC which adds up to a total of 92,326 BTC in their asset reserve. This huge sum of the currency means that MicroStrategy has more than $4 Billion in BTC.
The CEO of MicroStrategy Michael Saylor has also tweeted that he owns 17,732 BTC of his own, making him reach the top 100 Bitcoin owners. Saylor also believes that the returns on Bitcoin would be much higher in the future than gold. The amount of Bitcoin he holds and he believes show that he has a great deal of confidence in Bitcoin.
In the cryptocurrency space, Grayscale Investments is known to have the largest number of Bitcoin in their portfolio, no other institutional investing organization has more than $30 billion in Bitcoin. The company is found to have more than 3% of the total Bitcoin in the world. Not only this, the company has purchased more than 2000 BTC in 2021 only.
JPM is the largest U.S bank with assets and was known as the biggest enemy of cryptocurrencies, they were against it so much that the CEO Jamie Dimon called Bitcoin a fraud in 2017. However, the CEO is now hosting meetings with the CEOs of the largest crypto exchange, Coinbase.
The bank is now also processing Bitcoin transactions, this change is always because the prices of Bitcoin have been skyrocketing faster than ever and JPM knows that if they don’t take the opportunity right now, it will be a loss.
JPM has also been taking various measures to educate their clients about Bitcoins and their head of digital treasury also said that they are “supportive of cryptocurrencies as long as they are properly controlled and regulated”.
Square Inc. is a digital payment and financial services company, this company has huge confidence in Bitcoin and this is proven by the fact that they moved 1% of their total assets into Bitcoin. The firm also declared that they spent $50 million in 2020, to acquire 4,709 Bitcoins, in 2021 the company revealed that they have spent $170 million now on Bitcoin, after 2020 they have purchased 3,318 more Bitcoins which sums up to a total of 5% of company’s assets.
The commitment for Bitcoin has proven to be very beneficial for Square Inc. as they got more than 60% return of investments in 2021.
Although investing in BTC has its risks due to its volatility, a huge deal of organizations is still investing in it. The current market value of Bitcoin is more than $60,000 which causes a lot of institutions to drool over it.
However, this is just the beginning as the prices are continuously increasing and people are putting their money on it, more than ever.