Another Investment Firm Quietly Picked Up More than 17,000 Bitcoins Last Week
MicroStrategy Incorporated isn’t the only big-time buyer of Bitcoin. Grayscale Investments is too. Purchasing 17,100 bitcoins over the last seven days is proof of that.
Bitcoin enthusiasts and early adopters have been waiting patiently for years to see institutional money flood into the market and now it’s actually happening. So why did Grayscale Investments pick up so many coins?
More on Grayscale Investments
Make no mistake about it, Grayscale Investments is no small potato. The company has $4.7 billion in assets under management through the Grayscale Bitcoin Trust. The company’s position on Bitcoin is publicly displayed on its website for transparency sake.
The Grayscale Bitcoin Trust just celebrated its seventh anniversary of being in existence. According to bybt.com, Grayscale now owns more than 449,000 bitcoins. The recent purchase accounts for about $182 million USD, which is about $243.3 million Canadian.
Considering that the total amount of coins the trust holds is 449,000, that’s $6.5 billion Canadian worth of bitcoins in the coffers of Grayscale Investments.
What Institutional Investment Means for the Future Bitcoin?
Bitcoin investing started out as a grassroots movement when Satoshi Nakamoto published a whitepaper. A few in-the-know programmers adopted it and began building the blockchain while a few computer geeks started mining the coins with their laptops. Today, Bitcoin is worth close to $270 billion Canadian.
Considering that, it’s only a matter of time before more and more institutional investments in Bitcoin and other cryptocurrencies lead to exponential increases in Bitcoin’s overall market capitalization.
If a company like MicroStrategy Incorporated can afford to buy hundreds of millions of dollars in Bitcoin and the company itself is only worth $1.4 billion USD, what is going to happen to Bitcoin when a company like Apple, with a market capitalization of over $2 trillion USD throws down say $200 billion into Bitcoin and instantly doubles the market capitalization?
Do you think more companies will take it seriously? Do you think everyone that owns an iPhone will get on board? What about fellow tech giants like Microsoft or Amazon?
All of those companies have a responsibility to make money for their shareholders. So even if they never intend to accept crypto as payment or pivot their business models towards crypto in any way, investing in Bitcoin will become a prudent business practice. As a result, that practice will make progressive investors like you wealthier. Make no mistake about it.
Written by: Jack Choros
Writer, content marketing at Netcoins.