Finding an Identity
Since its inception, Bitcoin has been viewed by many as the currency of the future – A digital asset, capable of operating on a global scale, while providing both the ability to efficiently store and transfer value.
While the end goal for Bitcoin may be to establish itself as a true, practical currency, it simply is not there yet. There are various companies working towards this goal, however, developing solutions like the Lightning Network. These solutions are attempts to bring scalability and privacy up, while bringing operational costs down. Although Lightning Network is beginning to see meaningful adoption, it will still be some time before the second-layer protocol is commonplace.
For the time being, it would appear as though the new wave of institutional investors entering the market are doing so for one major reason – to hedge their bets. As a result, we are seeing an increasing amount of ‘treasury reserves’ benefiting from growing levels of Bitcoin allocation.
This identity being forged as a hedge investment, shows no signs of waning as we head in to the New Year. The following companies are a few of those from recent months which have highlighted and strengthened this trend, as each have invested significant sums into Bitcoin.
Perhaps the biggest known recent investor in Bitcoin is business intelligence firm, MicroStrategy. In a spending spree which began in October, this U.S. based company has gone on to become a vocal supporter of the digital asset.
MicroStrategy CEO, Michael Saylor, believes that, “Bitcoin is a bank in cyberspace, run by incorruptible software, offering a global, affordable, simple, & secure savings account to billions of people that don’t have the option or desire to run their own hedge fund.”
Bitcoin Investment – 70,470 BTC worth $1,858,202,289 USD
With a sizeable investment, and upcoming Bitcoin fund, SkyBridge has made one of the larger splashes in the sector as of late.
SkyBridge cofounder, Anthony Scaramucci, recently stated to CNBC, “You have to accept whether bitcoin is a store of value or not…There are still skeptics out there and that’s why I think we’re in the first inning. But after the research we’ve done … and given the monetary supply and the global central banking coordination right now, this will be a very strong asset class over the next decade.”
Bitcoin Investment – $182,000,000 USD
As one of the most vocal proponents of Bitcoin, it was no surprise when Jack Dorsey’s company, Square, announced its purchase of 50 million USD worth of the digital asset in late 2020. This was clearly a wise move, as this investment has since skyrocketed in value, nearly tripling in the time since.
Square Chief Financial Officer, Amrita Ahuja, states, “We believe that bitcoin has the potential to be a more ubiquitous currency in the future…As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
Bitcoin Investment – 4,709 BTC worth $124,170,208 USD
Despite having a long-standing interest in cryptocurrencies as a whole, Coinsilium has recognized the value of certain top assets like Bitcoin and Ethereum. As such, the company has made recent moves to increase its exposure to these top assets through its treasury reserves.
Bitcoin Investment – $1,090,000 USD +
This U.K. based investment firm manages over $27 billion worth of assets. Recently, the company made waves when it decided to purchase a sizable amount of Bitcoin believed to total roughly 2.5% of its treasury reserves.
“Bitcoin diversifies the company’s (much larger) investments in gold and inflation-linked bonds, and acts as a hedge to some of the monetary and market risks that we see,”
Bitcoin Investment – 45,000 BTC worth $1,186,591,500 USD
BIGG Digital Assets
As a cryptocurrency brokerage firm, BIGG practices what it preaches. Not only does it offer Bitcoin related services to its clientele, the company has recognized the value behind Bitcoin, and invested a sizable portion of its treasury into the digital asset.
BIGG CEO, Mark Binns, states “BIGG (formerly BIG Blockchain Intelligence Group) started accumulating Bitcoin as far back as 2015. Bitcoin has appreciated substantially as an asset class over 1, 2, 5 and 10 years horizons, and we believe the potential for impactful price appreciation is stronger today than ever. Institutional involvement and buying, and mainstream adoption, will continue to drive the price of Bitcoin as supply remains capped. We believe our Bitcoin holdings can act as self financing, over time, as we continue to expand our core crypto trading and blockchain forensic software businesses.”
Bitcoin Investment – 189.5 BTC worth $4,996,868 USD
*figures accurate at time of writing. USD value of Bitcoin can fluctuate rapidly.