by Aratrika Dutta
October 3, 2021
As cryptocurrencies gain popularity across the world, institutional investors and corporate treasuries are showing more interest in crypto investments. As of June 28, 2021, 34 state-owned companies collectively held more than 213,000 bitcoins, according to data from CryptoTreasuries. Together, these represent 1.14% of the total supply of bitcoin in circulation and equivalent to US $ 7.4 billion based on the price as of June 28, 2021. In addition to blockchain and bitcoin mining companies, some companies that do not engage in digital asset related activities such as because business intelligence software company MicroStrategy and electric auto maker Tesla also hold large amounts of bitcoin on the balance sheet, as bitcoin is considered a inflation hedging. Let’s take a look at the top 10 public companies investing in cryptocurrency.
MicroStrategy, a leading business analysis platform, has adopted Bitcoin as its primary reserve asset. Throughout 2021, the company that produces mobile software and cloud-based services continued its Bitcoin buying frenzy. It now holds 105,085 BTC in reserve, which is equivalent to over US $ 3.3 billion in BTC.
Electric vehicle maker Tesla has joined the ranks of companies holding Bitcoin, with an SEC filing revealing that the company has invested “a total of $ 1.5 billion” in cryptocurrency. Tesla sold 10% of its Bitcoin holdings in the first quarter of 2021; According to CEO Elon Musk, it was “to prove Bitcoin’s liquidity as an alternative to holding cash on the balance sheet.”
Tesla’s 42,902 BTC is currently worth $ 1.37 billion, with Bitcoin’s price drop in 2021 meaning the company potentially risks an impairment loss of between $ 25 million and $ 100 million in the next quarter. Tesla’s purchase of Bitcoin reflects an updated investment policy aimed at diversifying its liquidity and maximizing returns.
Galaxy digital backgrounds
The largest institutional holder of Bitcoin to be directly involved in the crypto industry, crypto-focused merchant bank Galaxy Digital Holdings holds 16,400 BTC worth just over US $ 522 million at prices current.
Voyager Digital Ltd
Crypto brokerage Voyager Digital holds 12,260 BTC worth around US $ 390 million at current prices. The company aims to provide a one-stop-shop for digital asset trading and, as of May 2021, reported quarterly revenue of $ 60.4 million, 16 times more than the previous quarter. “We have seen an exponential adoption of cryptocurrencies as a recognized and investable asset class,” said CEO Steven Ehrlich at the time.
The payment company Square bought around 4,709 bitcoin for a total price of US $ 50 million in October 2020 and acquired an additional 3,318 bitcoin for US $ 170 million in February 2021. The average price of all its bitcoin purchases is US $ 27,407 per token. The company has announced that it has no plans to buy more bitcoin in May 2021, as it plans to build a hardware bitcoin wallet that allows users to store their cryptos without Square’s custody.
Marathon Digital Holdings
Marathon Digital Holdings, a US bitcoin mining company, increased its bitcoin holdings to around 5,518 bitcoins in May 2021. The company bought around 4,813 bitcoins at an average price of US $ 36,857 in January 2021. From January to May 2021, she produced 580.5. newly minted bitcoins. Hut 8 Mining, another bitcoin mining company based in Canada, owns more self-mined bitcoin than any other bitcoin miner or public company.
Coinbase Global, Inc.
Arguably the most well-known crypto company on this list, the Coinbase crypto exchange went public in a direct listing on the Nasdaq in April 2021. The move was hailed as a landmark for the crypto industry, although this has not been confirmed by the decline of Coinbase. share price; as of July 2021, COIN was a third below its price on its list. Prior to listing, in February 2021, Coinbase revealed that it had US $ 230 million in Bitcoin on its balance sheet; by July 2021, its Bitcoin holdings had fallen to US $ 143 million (4,482 BTC).
Bitcoin SE Group
Germany-based venture capital firm Bitcoin Group SE holds 3,947 BTC, worth $ 126 million at today’s prices. Its investments include the crypto exchange Bitcoin.de and the Futurum bank, which merged in October 2020 to form “Germany’s first crypto bank”.
Mining company Hut 8
Canadian crypto-mining company Hut 8 holds 3,522 BTC, worth $ 112 million. In June 2021, the company was listed on the Nasdaq Global Select Market under the symbol HUT, with the company’s SEC filing indicating that it is “committed to increasing shareholder value by increasing the number and the value of our bitcoin holdings. In June 2021, Hut 8 shared its ambitious goal of mining 5,000 BTC by the end of the year; with the company buying new mining machinery and China’s crackdown reducing
Riot Blockchain, Inc.
Another US-based crypto-mining firm, Riot Blockchain, comes in at the bottom of the top 10, with relatively modest holdings of 2,243 BTC, worth $ 71 million at today’s prices. .
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