Due to an increase in purchases, companies are now closing in on 1 million bitcoins owned, with 840,000 BTC under corporate control, and that number seems to be growing fast.
It seems as if almost every week new companies are allocating a portion of their treasury reserve assets to bitcoin.
This increased drive in corporate adoption across a variety of industries and sectors may bode well for the emerging asset class and the crypto that leads them.
The Grayscale Bitcoin Trust is the number one corporate holder by a longshot, owning close to $10 billion on behalf of its investors.
Grayscale makes massive purchases on a regular basis, having purchased $182 million worth in September alone.
Grayscale currently owns over 500,000 coins, which is over 2% of the entire bitcoin supply, and possibly much higher considering all the lost and inaccessible BTC.
While Grayscale has been purchasing large sums for some time now, the growing list of public companies may be pointing the way to mainstream adoption.
Since public companies have to be openly transparent to their investors and the public, they record any substantial purchases.
Companies Outperforming on the Latest Bitcoin Rally
So far, investors of such companies have been rewarded extremely well. MicroStrategy is up over 120% since early October, with a current share price of around $330.
Square, the payment processing company owned by Twitter co-founder Jack Dorsey, made a similarly risky bet by purchasing $50 million worth of bitcoin back in early October.
The firm has also seen a positive response from investors, with its stock price rising by some 15% since the acquisition.
All the companies that have reported bitcoin holdings on bitcointreasuries.com are in the black thanks to the relentless buying pressure of the leading crypto.
MicroStrategy has made over $300 million in profit from its purchases and Square has made over $40 million, almost doubling its money since the initial investment.
The Institutional Investor Narrative
The crypto community has peddled the institutional investor narrative for a number of years. Has that time finally arrived? The data suggests that firms will continue to risk allocating a portion of their assets towards bitcoin.
This idea was elaborated on by Real Vision CEO, Raoul Pal, whose company recently invested 10% of its treasury assets into bitcoin. Pal recently commented that since he only invested a small amount, even if BTC dropped by 50%, he would only have lost 5% of his treasury.
The risk, many of these investors argue, is asymmetrical. If bitcoin goes up significantly – by 2x, 5x, or 10x or more – the company’s reserve assets will be in much better shape.