The idea that big companies might purchase cryptocurrency as a reserve was laughed at until recently. Cryptocurrencies were formerly thought to be far too volatile and radical to be used by a huge corporation. That stigma has indeed been broken in the last year, with a number of large investors purchasing cryptocurrency.
A lot of big companies have begun to contemplate putting cryptocurrency in their investment portfolios. A few of them have mentioned inflation as a cause, while others have discovered it to be a liquid asset that also generates a return. While others just wish to promote cryptocurrency as well as its capacity to provide people with financial opportunities.
In the previous year, the number of big companies and banks that have adopted cryptocurrency as a reserve asset has increased. So, in this post, we are going to take a look at some of the biggest companies and banks investing in crypto and their crypto portfolios.
Top Companies and Banks Investing in Crypto
Electric vehicle manufacturer Tesla stated in late December 2020 that it had revised its investment strategy to provide the business with greater freedom and variety, including the ability to invest in virtual currencies such as Bitcoin. The company’s quarterly report showed that the firm had liquidated 10% of its Bitcoin assets, causing a commotion on social networks, with some claiming that the corporation aided in the pumping of Bitcoin just to sell part of it. Although Tesla has really sold some of its Bitcoin holdings, the action appears to have been motivated by a desire to evaluate its liquidity.
Square stated in October 2020 that it had decided to buy $50 million worth of Bitcoin and bought around 3000 Bitcoins in February 2021. Since 2018, Square has been active in the crypto market, letting CashApp users buy, trade, and store cryptocurrencies.
The company thinks cryptocurrency is a vehicle of individual empowerment that may help the common good, according to the release. Furthermore, the firm is encouraging the purchase of cryptocurrency on its famous Cash App. Over 3 million individuals used their app to buy and sell cryptocurrency in the last year.
MicroStrategy paid $250 million for their first Bitcoin purchase in August of 2020. The firm has proceeded to purchase even more cryptocurrencies in various proportions since then.
This purchase’s objective is to enhance protracted value for the company’s stockholders. MicroStrategy recently stated that it will issue $400 million in senior notes in order to buy additional cryptocurrencies, as well as form MacroStrategy as a division to handle the corporation’s cryptocurrencies.
- Marathon Digital Holdings
Marathon Digital Holdings specializes in Bitcoin mining. The company has managed to accumulate a cryptocurrency portfolio of over 5,000 bitcoins. Its goal is to become North America’s largest mining company with one of the cheapest electricity bills. In January, Marathon Digital Holdings purchased $150 million worth of Bitcoin to improve its long-term asset allocation.
- Galaxy Digital Holdings Ltd
Galaxy Digital Holdings is a merchant bank with a focus on cryptocurrencies. This bank is the major institutional cryptocurrency holder directly associated with the cryptocurrency ecosystem, with 16,400 Bitcoins. It functions as both a portfolio management agency and a merchant bank and invests in cryptocurrencies, too. Furthermore, it offers institutional investors trading, consulting, and fund investing solutions. This firm currently invests in a slew of different cryptocurrency startups, too.
Cryptocurrency is attracting an increasing number of institutional investors. Many big companies have jointly acquired cryptocurrencies worth millions of dollars. These companies have adopted this approach as a result of low interest rates and inflation, which have caused capital in investment portfolios to lose long-term value.
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