Five years ago, the idea that large-scale public companies might invest in cryptocurrencies would have been a laughing stock. But, there has been a drastic change in the crypto industry since then. Over the past few years, companies have been pouring huge amounts of money into Bitcoin to maintain their reserves. From being labeled as a passing fad to being hailed as the ‘new gold’, the growth story of bitcoin has been sensational. Institutional investment in cryptocurrencies has increased manifolds in the past few years. According to CryptoTreasuries, 34 public companies hold over 213,000 bitcoins (as of 28 June 2021). This means they hold 1.14% of the total supply of bitcoins. There is a long list of companies that have invested in bitcoin and other cryptocurrencies over the years.
The institutional adoption of crypto has played a massive role in increasing the trust of investors in cryptocurrencies. Investments in bitcoin have increased substantially in 2021. Millions of new investors jumped on the crypto bandwagon in 2021. Investments in crypto surged to $30 billion during the year, more than the total for the three previous years combined. The increasing interest in a vast range of opportunities in the blockchain space is a major reason behind crypto’s substantial growth. As of now, more than 3,000 companies accept bitcoin as payments and the number is only going to increase in the future. While hundreds of companies are investing in cryptocurrencies, we are focusing on the companies with the biggest bitcoin portfolio.
Which Companies Have Invested In Bitcoin?
- MicroStrategy: If you have been in the crypto space for some time now, you might already know about MicroStrategy. With 124,391 BTC in its reserves, MicroStrategy, a business analytics platform, leads the chart of companies that have invested in bitcoin. MicroStrategy co-founder Michael Saylor is one of the strongest voices in the crypto space with the power to influence millions of investors. At one point, Saylor was buying $1,000 in bitcoin every second. He often compares bitcoin to gold to help people understand the true value of the digital asset. MicroStrategy made its first bitcoin purchase in August 2020. The company purchased 1,914 bitcoins on December 30, 2021, at an average price of $30,159 per bitcoin. Michael Saylor personally holds 17,732 BTC.
- Tesla: Tesla is another major company that has invested more than a billion dollars in bitcoin. The company’s interest in bitcoin has a lot to do with CEO Elon Musk, one of the biggest crypto influencers globally. According to the SEC filing by the company, it purchased 42,902 BTC for $1.50 billion. However, the company sold 10% of its bitcoin holdings in Q1 of 2021. According to Elon Musk, the sale was made “to prove liquidity of Bitcoin as an alternative to holding cash on the balance sheet.” The company also accepts bitcoin as payment for the Tesla cars. Besides bitcoin, Musk is also a strong supporter of dogecoin. In fact, Tesla started accepting dogecoin as payments for a brief period of time.
- Galaxy Digital Holdings: Galaxy Digital Holdings, a crypto-focused bank based out of Canada, is the largest institutional holder of bitcoin. With $16,400 bitcoins in its reserves, Galaxy Digital Holdings is the third-largest company in terms of investment in bitcoin. Galaxy Digital Holdings’ interest in crypto extends beyond bitcoin investment. It has partnered with crypto firms including Block.one and BlockFi.
- Voyager Digital LTD: Voyager Digital is a crypto brokerage company that holds 12,260 BTC. Investing millions of dollars in bitcoin amid the crypto wave has helped the company benefit from the increased adoption of digital assets. Voyager Digital provides digital assets trading services to users and has been recording exponential growth in its revenue quarter on quarter.
- Block Inc: Block Inc is a payments firm founded by former Twitter CEO Jack Dorsey. The company first invested in Bitcoin in October 2020, purchasing 4,709 BTC worth around $50 million. The company sells hardware and software wallets for storing crypto and has more than 8,200 BTC in its reserves. Formerly known as Square, Block Inc is also into developing Bitcoin mining rigs. It is one of the biggest crypto-centric companies having Bitcoin on its balance sheet.
- Marathon Digital Holdings: Marathon Digital Holdings is a bitcoin company that has invested millions of dollars to accumulate 7,649 BTC. The company is on a mission to “the largest Bitcoin mining operation in North America at one of the lowest energy costs.” Before jumping into mining operations, Marathon Digital operated as a patent-holding firm.
- Hut 8 Mining Corp: As the name suggests, Hut 8 Mining Corp is mainly into crypto mining. The Candian crypto mining company has invested nearly around $200 million dollars to add 5,242 BTC to its reserves. The company is also listed on the Nasdaq Global Select Market. Hunt 8 Mining Corp generates fiat income by leveraging its reserve of self-mined and held Bitcoin.
- Coinbase Global: Coinbase is a known name in the crypto industry with millions of investors and traders accessing the platform to buy and sell cryptocurrencies. Coinbase is one of the most popular crypto companies to have invested in Bitcoin. As of now, it holds over 4,482 bitcoins. The popular crypto exchange went public after a direct listing on Nasdaq in April 2021.
Final Word
Investment of large companies in bitcoin and other cryptocurrencies is a powerful statement that could encourage small enterprises and startups across the world to explore investment opportunities in the crypto market. Hundreds of companies are already invested in bitcoin and the number is expected to increase substantially in the coming years. The involvement of institutional investors and large-scale companies in the crypto industry could do wonders for the trust factor in the sector. More and more retail investors could jump on the bandwagon in 2022, shattering the record investments in the sector in 2021. The next few years can define the future of crypto and its position in global finance.