Bitcoin investments by institutional investors are commonplace today. That has not been the case in the past few years. Institutional investors have been investing in cryptocurrencies for some time. But not particularly intense. 2020 changed all of that. With the bull run that began in 2020, additional institutional funds poured into the market. Bitcoin forecasts indicated continued growth – and the institutions didn’t want to be left out.
Funds like the Grayscale Bitcoin Trust began to increase their stakes in cryptocurrencies at this point. Michael Saylor’s MicroStrategy was buying up bitcoins at an alarming rate. No wonder – with a CEO who is so positive about Bitcoin. Saylor himself has admitted that he has a personal interest in the digital asset. As the interest of institutional investors increases, it is important to know: How many institutional investors own Bitcoin?
Institutional wallets approach 10% of the total supply
Data shows that institutional investors now own almost 8% of the total supply of Bitcoin. The top owners now have hundreds of thousands of bitcoins in their care. But others are catching up. The cumulative total of Bitcoin Treasuries shows: The total stock of BTC held by institutional investors is currently more than 1.6 million Bitcoins. This corresponds to a total of 7.91% of the current BTC offer.
The total cost basis at which these assets were purchased shows that institutional investors are currently in the green. Bitcoin Treasuries data put the total cost base at $ 53.9 billion. The value of bitcoins held by institutional investors is currently $ 77.8 billion. This means that the institutional investors make a profit on their investments.
The data also shows that while some institutional investors are in the red, the majority of institutional investors have made a profit. Some even made 97 times their original investment in the asset.
Institutions invested in Bitcoin
A total of 61 institutional investors have been put together who have invested in Bitcoin. Some institutional investors had only invested in 2 bitcoins. Others have invested in hundreds of thousands.
Of all institutional investors, Grayscale tops the list with a whopping 654,885 Bitcoins. The company’s BTC holdings account for 118% of the trust’s total market capitalization. MacroStrategy, a subsidiary of MicroStrategy under which Bitcoins are bought, currently holds 108,991 BTC – with a cost base of $ 2.9 billion and a current value of $ 5.1 billion. This shows that the company has already made over 100% profit on its original investment.
An interesting fact is that the Bulgarian government currently holds one of the largest pots for institutional investors. Bulgaria owns 213,519 bitcoins that were purchased at a cost basis of $ 3.3 billion. The value of the coins is currently 10 billion dollars. This means that the Bulgarian government has already made a 300% profit on their original BTC investment.
Proof of text: Bitcoinist
Last updated on August 30, 2021
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