The Bitcoin market value has been steadily rising and is now worth a whopping $202 billion. But, that’s not the only reason why public companies are starting to invest in Bitcoin. Many see it as an investment opportunity they can’t miss out on while others regard it as their future-proof currency.
The “why has crypto stalled” is a question that many people are asking. It seems like the market has been struggling to find a bottom and it’s not clear why. With the bitcoin holdings of public companies surging, it may be time to invest in this cryptocurrency again.
In 2021, the amount of Bitcoin owned by private companies climbed dramatically, building on previous year’s gains.
On-chain expert Willy Woo said in a tweet on Jan. 3 that public businesses with “substantial BTC” had “gained market share from spot ETFs as a method to obtain BTC exposure on public equities markets.”
Since MicroStrategy’s “Bitcoin for Corporations” conference on Feb. 3 and 4, 2021, this has been increasingly apparent. The goal of the online session was to discuss the legal implications for companies looking to incorporate Bitcoin into their operations and reserves.
MicroStrategy, a major business intelligence organization founded by Michael Saylor, is recognized for being very bullish on Bitcoin, with about $6 billion in crypto assets under management.
Saylor’s business acquired another 1,914 BTC for $94 million on December 30. Since its original BTpurchase in August 2020, the firm has made a profit of more than $2.1 billion.
Based on crowdsourced corporate treasury data, Woo referenced a graphic showing BTC holdings within ETFs and public company treasuries accessible for public ownership through stock markets.
BTC is held in Spot Exchange Traded Funds (ETFs), as opposed to Futures, where firms buy exposure via contracts on the CME futures market.
Public companies* owning large BTC have gained market share from spot ETFs** as a tool to get BTC exposure on public stock markets since MicroStrategy’s “Bitcoin for Corporations” conference in February 2021.
* MicroStrategy and public mining firms Grayscale mostly pic.twitter.com/e18OEfgiEW
January 2, 2022 — Willy Woo (@woonomic)
Grayscale, a digital currency asset management business, has a landslide market share of 645,199 BTC by the end of 2021, according to the statistics. According to the graphic, this accounted for 71% of the whole market, with total holdings of all spot ETFs and businesses totaling 903,988 BTC.
Related: Did you miss out on the hottest cryptocurrency stocks in 2021? According to statistics, it was profitable merely to acquire Bitcoin and Ethereum.
According to BitcoinTreasuries, MicroStrategy is the greatest corporate investor, with 124,391 BTC worth roughly $5.8 billion. Tesla is in second place with over 43,200 coins valued almost $2 billion at current pricing.
According to Cointelegraph, the amount of BTC owned by public firms increased 400 percent in a year to $3.6 billion in 2020.
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