How Much Bitcoin [BTC] Does Wall Street Own?
Top firms to enter Bitcoin [BTC] race are MicroStrategy, Square Inc. , Stone Ridge Asset Management and GrayScale. Yesterday, October 31st, crypto king Bitcoin (BTC) celebrated its 12 birthday since the release of the Bitcoin whitepaper. Bitcoin pushed past $14,000 levels and registered its biggest ever monthly closing in the last 34 months after the 2020 bull run.
Analysts are saying that Bitcoin is all set to break past its all-time high of $20,000 likely over the next year. However, the reason behind this is a flood of money coming into Bitcoin from Wall Street.
2020 has been the year when the dynamics of the global economy has shifted considerably as investors remain on the hedge. The Coronavirus pandemic has hit businesses and the global economy and the end seems nowhere near Europe entering the second phase of lockdown and the U.S. registering another wave and spike in cases.
In this case, Bitcoin (BTC) remains the center of attraction and as a potential hedge against falling interest rates and rising inflation. Bitcoin, also popular as the “Digital Gold”, has managed to successfully sway the Wall Street giants over the last few months.
With the recent moves, Bitcoin has also distanced itself from traditional assets like Gold and continues to attain the position of dominance. Bitcoin critic and Wall Street giant had to ultimately admit that millennials clearly prefer stacking up Bitcoins (BTC) over the yellow metal.
Wall Street’s Owns Significant Bitcoin [BTC] Supply
As of now four major wall street firms have entered Bitcoin [BTC]. Below are the details of their bitcoin holdings and their future plans.
As of its Q3 2020 numbers, MicroStrategy owns a total of 38,250 BTC for an average purchase price of $11,111 per bitcoin.
Over the last few months, some massive amounts of institutional money from Wall Street is coming to Bitcoin. Business Intelligence firm MicroStrategy stirred the movement by pouring nearly half-a-billion dollars of its idle cash into Bitcoin.
The aggregate purchase stands at $425 million. With this massive BTC holding, MicroStrategy controls one complete Bitcoin node or 0.02% of the total Bitcoin supply.
However, at the current BTC price, these purchase is worth a massive $515 million, meaning the firm is already realizing 20% plus returns in a very short period of time. Interestingly, MicroStrategy’s has paid off well to an extent that with its BTC investments, it clocked $100 million-plus returns in a very short time against $77 million returns in the last three years.
MicroStrategy registered its strongest quarter (Q3 2020) in years and a 60% jump in its share from the 2020 bottom. Spilling the beans further, the company CEO and Bitcoin bull Michael Saylor recently told that he personally owns over 17,000 BTC with an aggregate purchase of nearly $240 million.
Last month, Jack Dorsey-backed Square Inc. poured a massive $50 million in Bitcoin. The company declared purchasing over 4700 BTC at an average price of $10617.96 per BTC.
Although it is only 1% of Square’s total assets under management, the shift in Square’s strategy from traditional assets is noticeable. Jack Dorsey, who has referred to Bitcoin (BTC) as the currency of the globe on several occasions, remains bullish about its future. The Square Cash App is already popular among the millennials for Bitcoin purchases and thus the company’s entry to BTC comes as no big surprise.
Another big name from Wall Street – Stone Ridge Asset Management – reported holding over $100 million worth of BTC as its “Primary Treasury Reserve Asset”.
Earlier this month, Stone Ridge subsidiary NYDIG announced raising over $50 million in growth equity funding. NYDIG is one of the leading providers of Bitcoin solutions to “institutional allocators, corporations, investment advisers, and high net worth individuals”. Currently, NYDIG manages two large Bitcoin funds each over $150 million.
We are talking of such big names we cannot forget Grayscale.
In its latest Digital Assets Investment report, the company reported a massive $700 million-plus institutional money rain in the Grayscale Bitcoin Trust during the September-ending quarter. The Bitcoin Trust has registered over a 150% surge in institutional money year-to-date.
The Grayscale Bitcoin Trust alone accounts for 82% of the company’s total assets under management (AUM) of $7.3 billion. It has also registered a massive influx of funds this month. Grayscale has been aggressively running its “Drop Gold” campaign to pull more players to Bitcoin.