Here are the major public companies that have adopted Bitcoin as a reserve asset

When Microstrategy Inc. bought $ 425 million worth of bitcoin in the past two months, the decision became a major stamp of institutional approval of the cryptocurrency’s credentials as a mature and safe haven asset. The American tech firm had just made bitcoin its main reserve asset to protect itself from fiat inflation. Now, it appears that major global companies are following Microstrategy’s bitcoin strategy.

The bitcointreasuries.org website is curating bitcoin treasures held in reserve by publicly traded companies around the world. At the time of writing, 13 companies with a grand total of 598,237 BTC, or 2.85% of the total supply of 21 million BTC, are listed on the page. Here is a closer look at some of the entities.

Bitcoin Trust in grayscale – 2.14%

Grayscale Investments is, perhaps, an unsurprising step forward in this regard. Through its Bitcoin Trust Fund (GBTC), which owns and tracks the price of bitcoin, the New York-based firm now holds 449,596 BTC, currently valued at $ 5.1 billion, and accounting for 2.14%. of the total outstanding supply of the digital asset. Listed on the OTCQX market, the Trust acquired 70% of all newly minted bitcoins in 2020, nearly doubling its portfolio in the process.

Interestingly, Gbtc holds this BTC on behalf of accredited corporate investors, who typically value bitcoin’s privacy and value credentials while calculating reluctant to gain direct exposure to the asset. Grayscale’s bitcoin trust “became the first publicly listed stock that invested exclusively in the price of bitcoin and gained value from it” when it was launched in 2013. The company runs ten crypto investment products focused on institutional investors. The funds cover ethereum (ETH), bitcoin cash (BCH), zcash, XRP and more.

Microstrategy Inc. – 0.18%

Grayscale may be a pioneer, but it’s Microstrategy that has taken all the headlines in recent weeks. The Nasdaq-listed company, which develops mobile software and provides cloud-based services, bought $ 425 million worth of bitcoin in August and September, becoming BTC Microstrategy’s main reserve asset.

The multi-billion dollar US firm now holds a total of 38,250 BTC, in a move that signals growing corporate adoption. At current exchange rates, the portfolio is worth more than $ 433 million, a gain of $ 8 million, in an environment of increased stimulus spending that has sent global fiat currencies into a tailspin. Microstrategy CEO Michael Saylor is particularly optimistic.

“This investment reflects our belief that bitcoin, as the world’s most widely adopted cryptocurrency, is a reliable store of value and an attractive investment asset with greater long-term appreciation potential than holding cash,” he says.

Square Inc. – 0.022%

Corporate adoption may not yet be considered a trend, but news that Jack Dorsey’s Square Inc. has moved 1% of its total assets into bitcoin suggests that something may be under construction. On October 8, the New York Stock Exchange-listed mobile payment company announced it had spent $ 50 million to buy 4,709 bitcoins. According to Amrita Ahuja, Square’s chief financial officer, “bitcoin has the potential to be a more ubiquitous currency in the future.”

In this regard, the company intends that “as (bitcoin) grows in adoption, we intend to learn and participate in a disciplined manner. For a company that is making products based on a more inclusive future, this investment is a step on that journey. “Bitcoin has reacted positively to Square’s news, climbing 8% in the past 72 hours to over $ 11,300 from $ 10,500. . With a market capitalization of more than $ 83 billion, Square provides software and hardware payment solutions. In 2019, the company had revenues of $ 4.7 billion. It has offices in the United States, Canada, Australia, Japan. and the United Kingdom.

Coinshares – 0.33%

Coinshares Ltd is a UK-based investment fund that primarily focuses on direct and indirect exposure to bitcoin and other cryptocurrencies. The company manages over $ 1 billion in digital assets, with bitcoin accounting for nearly 80%. Coinshares currently holds, on behalf of investors, a total of 69,730 BTC, worth $ 790 million, according to bitcointreasuries.org.

Through its subsidiary XBT Provider, Coinshares offers two ETNs (Exchange Traded Notes) traded globally in bitcoin and ethereum, Bitcoin Tracker One and BTC Tracker Euro, and ethereum, Ether Tracker One and ETH Tracker Euro, respectively. Its ETNs are listed on the Nasdaq Nordic in Stockholm, Sweden and retail investors can buy the instruments. However, the product took a hit when the UK financial regulator recently banned the sale of ETNs to retail clients in the country.

Other lists

Several other publicly traded companies are listed on the bitcoin treasures website. They include bitcoin miners Hut 8 Mining, which operates on the Toronto Stock Exchange (TSX) and the London Stock Exchange’s Argo Blockchain. Both companies hold bitcoin as a reserve asset. At the end of June, Hut 8 held 2,954 BTC while Argo Blockchain had 126 BTC by the end of September. Another mining entity, Riot Blockchain, Inc had 1,053 bitcoins in its reserves in June.

Mike Novogratz’s Galaxy Digital Holdings, a TSX-listed company that “seeks to institutionalize the digital asset and blockchain space”, holds 16,651 BTC, valued at approximately $ 188 million at prevailing market prices. The firm provides wealth management, investment, advisory and trading services, as well as making major investments. Voyager Digital Ltd, Cypherpunk Holdings, and DigitalX also make the list of those public companies that hold bitcoin as a hedge against legal inflation.

What do you think of the bitcoin held in reserve by public companies? Let us know in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons, bitcointreasuries.org