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How Much Bitcoin Does Wall Street Own?

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So far, four Wall Street giants have invested in Bitcoin. This article takes stock of the details of its Bitcoin holdings and future plans.

Original title: "How Much Bitcoin [BTC] Does Wall Street Own?"

Original author: Bhushan Akolkar

Original translation: 0x13, Rhythm BlockBeats

Top companies joining the Bitcoin track include MicroStrategy, Square Inc., Stone Ridge Asset Management and GrayScale. On October 31, the king of encryption, Bitcoin, ushered in the 12th birthday of the release of the Bitcoin white paper. The bitcoin price also broke through $14,000 and recorded its highest monthly close in the past 34 months following the 2017 bull run.

2020 is a year of major changes in the global economic landscape, and investors are still in a state of risk aversion. The hard times are far from over as the COVID-19 pandemic has dealt a severe blow to businesses and the global economy, with Europe also beginning its second phase of lockdown and another wave of epidemic peaks in the United States.

In this case, Bitcoin is the most valuable hedge against falling interest rates and rising inflation. attractive. Bitcoin, also known as "digital gold," has managed to influence the investment decisions of Wall Street titans over the past few months.

With recent moves, Bitcoin has also opened the gap with traditional assets such as gold and continues to gain dominance . Bitcoin critics and Wall Street moguls are finally having to admit that millennials clearly prefer hoarding bitcoin over gold.

Wall Street giants hold a lot of bitcoin

As of now, four Wall Street giants have invested in Bitcoin. Below are details of their bitcoin holdings and future plans.

MicroStrategy

As of 2020 the third According to quarterly data, MicroStrategy owns a total of 38,250 BTCs, with an average purchase price of $11,111 per Bitcoin.

Over the past few months, some huge institutional money from Wall Street has been pouring into Bitcoin. Business intelligence firm MicroStrategy kicked off the movement by plowing nearly $500 million of its idle cash into bitcoin.

MicroStrategy’s Bitcoin purchases totaled $425 million. With this massive BTC holding, MicroStrategy controls a full Bitcoin node representing 0.02% of the total Bitcoin supply.

However, at current BTC prices, these bitcoins are worth nearly $515 million, which means that the company is already A return of more than 20% was achieved in a short period of time. Interestingly, MicroStrategy's investment in BTC has returned about $100 million in a very short period of time, while MicroStrategy's investment return over the past three years has only been about $77 million.

MicroStrategy Posts Strongest Quarter in Years (Q3 2020) The bottom jumped 60%. The company’s CEO, Bitcoin advocate Michael Saylor, recently stated that he personally owns more than 17,000 bitcoins, with total purchases of nearly $240 million.

Square Inc

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Last month, the Jack Dorsey-backed company Square invested $50 million in bitcoin. The company claims to have purchased more than 4,700 BTC at an average price of $10,617.96 per BTC.

While it represents only 1% of Square’s total assets under management, Square’s strategy shift away from investing in traditional assets is obviously. Jack Dorsey, who has referred to Bitcoin as a global currency on multiple occasions, remains bullish on its future. Among millennials, the Square Cash App is popular for buying bitcoin, so it's no surprise the company's foray into bitcoin.

Stone Ridge Asset Management

Another big name from Wall Street, Stone Ridge Asset Management, reported holding over $100 million worth of Bitcoin as its "primary fiscal reserve asset."

Earlier this month, NYDIG, a subsidiary of Stone Ridge, announced that it raised more than $50 million in growth equity financing. NYDIG is one of the leading providers of Bitcoin solutions for "Institutional Allocators, Corporations, Investment Advisors and High Net Worth Individuals." Currently, NYDIG manages two large bitcoin funds, each with over $150 million.

Grayscale

When When we talk about such a well-known company, we can't talk about Grayscale.

Grayscale’s latest digital asset investment report stated that in the third quarter ending September, the Grayscale Bitcoin Trust Fund (Grayscale Bitcoin Trust) saw institutional funding growth of over $700 million. Institutional funding for the Bitcoin Trust has surged more than 150% this year.

Grayscale Bitcoin Trust alone accounts for the firm’s total assets under management (AUM) ( 7.3 billion US dollars). This month, it has also seen significant inflows. Grayscale has been actively running a "Drop Gold" campaign to attract more people to invest in Bitcoin.

Who is next?

It seems that we are slowly entering the field of Bitcoin investment, and there will be no turning back after that. Former Goldman Sachs hedge fund manager Raoul Pal recently predicted that giants like Microsoft and Apple could enter BTC.