For several years, the notion of publicly traded corporations purchasing Bitcoin as part of their reserves was deemed absurd. Bitcoin, being viewed as too unpredictable and unconventional, was not taken seriously by the business community.
Several big institutional investors have purchased Bitcoin in the last two years, shattering the taboo. The acquisition of $425 million in Bitcoin by cloud software business MicroStrategy in August and September 2020 set off a chain reaction, with others following suit.
Among these were payments processor Block and EV producer Tesla, and it signaled the start of a torrent of activity. As Bitcoin gained more acceptance in institutional circles, the 2022 cryptocurrency crash hit and brought about a significant drop in Bitcoin’s value, which affected the worth of businesses’ Bitcoin investments in conjunction with the decline in tech stocks.
Following the crisis, the list of companies with the largest Bitcoin holdings has shifted, with several organizations selling off some of their crypto holdings as the market fell.
For individuals who are hesitant to purchase Bitcoin directly, investing in publicly-traded companies that hold Bitcoin may provide an opportunity to gain exposure to the asset without the need to manage self-custody. Certain specialists believe that MicroStrategy’s significant purchases of Bitcoin have effectively transformed the company into a Bitcoin ETF.
Top 10 Public Companies
The major business analytics platform, MicroStrategy, has made Bitcoin its main reserve asset. Throughout 2021 and 2022, the company focused on developing mobile software and cloud-based services while engaging in a vigorous buying spree of Bitcoin. Despite the market slump in 2022, the company acquired millions of dollars worth of cryptocurrency.
MicroStrategy’s Bitcoin Buying Spree
The corporation had 129,699 BTC in reserve as of July 2022, equivalent to just over $2.8 billion. But the company’s bitcoin holdings have seen a considerable value loss due to the current cryptocurrency market fall. Michael Saylor, the CEO of MicroStrategy, once claimed that he was purchasing Bitcoin at $1,000 per second.
Michael Saylor’s Personal Investment
While most CEOs avoid disclosing their personal investment choices, Saylor differs by openly stating that he possesses 17,732 BTC, which presently exceeds $387 million.
Based on data provided by BitInfoCharts, if MicroStrategy CEO Michael Saylor holds all his Bitcoin in one address, he would be among the top 100 Bitcoin owners. This represents a significant change of opinion for Saylor, who stated in 2013 that he believed Bitcoin was not sustainable.
MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTRhttps://t.co/leQYTXn817
— Michael Saylor⚡️ (@saylor) June 29, 2022
The image from BitInfoCharts shows the distribution of Bitcoin based on the number of addresses. As of New Year’s Eve in 2020, Morgan Stanley had announced its acquisition of 10.9% of MicroStrategy.
Bitcoin As A Reserve Asset
Saylor reaffirmed his choice to hold Bitcoin as a reserve asset instead of gold following the crypto crash of 2022. In an interview with CNBC, he said that Bitcoin might increase to a value of $1,000,000 if it doesn’t go to zero.
— Michael Saylor⚡️ (@saylor) October 28, 2021
He also asserted that Bitcoin is superior to gold in all aspects that gold aims to achieve. He claimed that even if Bitcoin were valued at the same level as gold, each coin would still be worth $500,000.
2-Galaxy Digital Holdings
As per Bitcoin Treasuries.org, Galaxy Digital Holdings, a merchant bank with a concentration on cryptocurrencies, is the largest institutional holder of Bitcoin, with a direct stake in the sector with 16,400 BTC. Currently, this amount is only worth slightly more than $357 million.
The business was established in January 2018 by Michael Novogratz, who has collaborated with Block. one and BlockFi, as well as other cryptocurrency businesses.
Novogratz’s Perspective On Bitcoin And Gold
The COVID-19 pandemic’s stimulus measures, according to Novogratz, a vocal proponent of Bitcoin, sparked an increase in interest in cryptocurrencies. He deemed it a crucial period for Bitcoin and emphasized that “money doesn’t grow on trees.”
Later in the year, Novogratz expressed his opinion that gold was a more secure option due to the high volatility of cryptocurrency. Despite acknowledging that Bitcoin outperforms gold, he advised people to hold less Bitcoin than gold.
This advice turned out to be wise as the 2022 crypto crash occurred. Novogratz emphasised that Bitcoin would continue to be a significant macro asset despite the crash, but he also acknowledged that the industry had suffered greatly.
Galaxy Digital’s Involvement In The Bitcoin ETF Proposal
Galaxy Digital worked together on the proposal for a Bitcoin ETF in September 2021. However, the Securities and Exchange Commission of the United States has only authorised Bitcoin futures ETFs to yet.
3-Voyager Digital LTD
Voyager Digital, a cryptocurrency brokerage, recently acquired 12,260 BTC, which are worth $267 million at the current exchange rate, said bitcointreasuries.org. The main goal of the business is to offer an integrated trading platform for digital assets.
The company’s quarterly earnings increased 16 times to $60.4 million in May 2021. CEO Steven Ehrlich noted the widespread adoption of cryptocurrencies at the time as a recognizable and investable asset class.
Voyager Digital suffered a major setback during the 2022 crypto crash. The company suspended trading on its platform due to unfavorable market conditions. It disclosed a significant financial exposure of $661 million to Three Arrows Capital, a struggling crypto investment firm, in Bitcoin and USDC.
This unfortunate turn of events ultimately led to Voyager Digital filing for bankruptcy, making it a significant casualty of the crypto market downturn.
Tesla’s Investment In Bitcoin And Its Purpose
Tesla, a producer of electric automobiles, announced in an SEC filing in December 2020 that it has invested $1.50 billion in Bitcoin, joining the ranks of businesses that have cryptocurrency.
Tesla’s CEO, Elon Musk, declared in the first quarter of 2021 that 10% of the company’s Bitcoin holdings had been sold. The purpose of this move was to demonstrate how Bitcoin can function as a rapidly convertible asset that can be substituted for cash on the corporation’s balance sheet.
Following months of speculation spurred by CEO Elon Musk’s discussions on cryptocurrency on Twitter, the company moved into Bitcoin. MicroStrategy’s Saylor had previously proposed to share his Bitcoin investment strategy with Musk, contending that such a move would benefit Tesla shareholders to the tune of $100 billion.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Tesla’s Turbulent Association With Bitcoin
Musk and Tesla have had a turbulent association with Bitcoin. In March 2021, they revealed plans to allow customers to make payments using Bitcoin. But the CEO declared that the business would stop processing Bitcoin payments two months later.
Musk stated that the company has decided not to sell any of its Bitcoin holdings due to the escalated use of fossil fuels in Bitcoin mining and transactions.
However, they may reconsider using it for transactions in the future once mining shifts towards more environmentally friendly energy sources. Musk elaborated that the company plans to resume Bitcoin transactions. This will only happen when the mining process is powered by at least 50% clean energy.
Tesla’s Q2 2022 Operational Profitability Hits $2.5B with 75% Bitcoin Holdings Sell-Off
During its Q2 2022 quarterly update, the company disclosed that it had sold about 75% of its Bitcoin holdings, amounting to $936 million in sales from digital assets, in July 2022. Musk clarified during a call with analysts that the company sold its Bitcoin holdings to boost its cash reserves.
The reason behind this move was that the company was unsure when the Covid lockdowns in China would end. He said that the corporation might eventually raise its holdings of Bitcoin. He emphasized that we should not interpret the selling of those shares as a criticism against Bitcoin.
Tesla sold 75% of its Bitcoin assets, worth about $936 million, according to its Q2 earnings release. In its post-market earnings announcement to shareholders, Elon Musk’s electric vehicle company stated that a “Bitcoin impairment” had harmed its profitability.
However, recording operational profitability of $2.5 billion during the second quarter. The statement immediately caused the cryptocurrency market to react. Bitcoin (BTC) drastically declined after crossing the $24,000 barrier on Wednesday.
According to bitcointreasuries.org, Tesla now holds 10,725 BTC valued at approximately $233 million following the sell-off. This has caused the company to drop from second to fourth in the rankings.
Tesla’s digital asset holdings for Q2 2022 stood at $218 million, a decrease from the previous quarter’s $1.26 billion. They reported this information in their Q2 balance sheet.
Musk spoke with analysts during the Q2 2022 call and expressed his support for Dogecoin. He stated that Tesla would accept Dogecoin as a payment method for certain Tesla products. This move could increase the use and popularity of Dogecoin in the marketplace. He also emphasized that the company had not sold any Dogecoin holdings.
5-Marathon Digital Holdings Inc.
Marathon Digital, a company engaged in Bitcoin mining, is not surprisingly also a significant owner of Bitcoin. The company’s corporate treasury currently holds 10,055 BTC, which has a current market value of approximately $218 million.
Patent Holding To Bitcoin Mining
Marathon Digital initially started as a patent holding firm, often called a “patent troll.” However, it later shifted its focus to cryptocurrency mining. The company aims to establish North America’s most extensive Bitcoin mining operation at minimal energy costs.
Strong Commitment To Bitcoin Mining Despite Challenges
Marathon Digital’s goal is to achieve a hash rate of 23.3 EH/s per day by 2023. To accomplish this, they plan to employ more than 199,000 Bitcoin miners. This represents a remarkable 600% increase from their hash rate in December 2021.
The company placed a massive order of 78,000 Antminer mining machines from Bitmain. The delivery of these machines will take place throughout 2022. Marathon continues to show its dedication to mining Bitcoin despite the increasing electricity costs and the cryptocurrency’s declining value.
In June 2022, the company declared it was “reasonably protected and in a good position”. The reason for this was its ability to mine Bitcoin for approximately $6,200 per coin. This was achieved through low operational expenses and fixed power prices.
Block’s $50 million investment in Bitcoin in October 2020, alongside Tesla, sparked institutional investment in the cryptocurrency. Since then, Block has continued to invest in Bitcoin, with holdings currently worth $174 million. Jack Dorsey, the CEO of the business, has publicly endorsed Bitcoin and even operated his own Bitcoin node.
— jack (@jack) October 8, 2020
Block has reaffirmed its commitment to holding Bitcoin for the long term and has launched a $5 million fund for crypto education. The company has also announced plans to develop a Bitcoin hardware wallet and is considering building mining rigs. In December 2021, the company changed its name from Square to Block to reference Bitcoin’s underlying blockchain technology.
7-Hut 8 Mining Corp
Hut 8, a Canadian company that mines digital currency, currently possesses 7,406 BTC with a market value of $161 million. The company debuted its shares on the Nasdaq Global Select Market in June 2021 under the ticker HUT. The corporation pledged in its SEC filing to increase shareholder value by increasing the quantity and value of its Bitcoin assets.
June 2022 production update:
🚀 7,406 BTC in reserve
🦾 2.78 EH/s operating capacity
📆 328 BTC mined in May ~ 10.9 BTC/day
👉100% of Bitcoin deposited into custody consistent with our longstanding HODL strategy#BTC #HODL @Hut8Mining
Read More👇 https://t.co/Gzo9Enfus3
— Hut 8 (@Hut8Mining) July 6, 2022
The company made it clear that it generates fiat currency using its self-mined and owned Bitcoin reserve through yield account agreements with leading digital asset prime brokerages.
Similar to other companies in the cryptocurrency industry, Hut 8 has experienced a decline in its stock value due to the cryptocurrency market downturn. The company’s stock price peaked at $20 in November 2021 and dropped below $3 in July 2022.
8-Riot Blockchain, Inc.
Riot Blockchain, a cryptocurrency mining company based in the United States, currently possesses 6,654 BTC, valued at $144 million based on today’s prices.
Aggressive Expansion Drive:
The Nasdaq-listed corporation began an aggressive expansion drive after its valuation soared from about $200 million in 2020 to over $6 billion in 2021. In April 2021, the company purchased a one-gigawatt Bitcoin mining facility in Rockdale, Texas, for $650 million.
The acquisition was deemed a “game-changing moment” for the company, as it would establish it as the “top publicly-traded Bitcoin mining and hosting firm in North America in terms of overall developed capacity.
Riot disclosed additional intentions to extend its presence in Texas in April 2022, when it unveiled plans for an additional mining facility of one-gigawatt capacity in Navarro County.
Despite the cryptocurrency market crash in 2022, CEO Jason Les expressed his confidence in the growth potential of Bitcoin mining in the United States, stating that “there is still an enormous opportunity” in this sector.
Despite reaching an all-time high of over $70 in February 2021, Riot’s stock price has fallen considerably and was trading at less than $7 as of July 2022.
9-Coinbase Global, Inc.
Most people consider Coinbase the most well-known Bitcoin company in the industry for cryptocurrency exchanges. The list states that it became publicly traded in April 2021 following a direct listing on the Nasdaq.
The most well-known Bitcoin company on this list is usually thought to be the cryptocurrency exchange Coinbase. In April 2021, it became public through a direct listing on the Nasdaq.
Before going public in February 2021, Coinbase revealed on its balance statement that the company has Bitcoin worth $230 million. The sum dropped to $98 million (4,482 BTC) in July 2022.
10-Bitcoin Group SE
German venture capital firm Bitcoin Group SE holds only 3,947 BTC, placing it last on the list of holdings. This sum is worth over $86 million at today’s pricing.
The entity has invested in Bitcoin.de, a crypto exchange, and Futurum Bank. These two entities merged in October 2020 to create “Germany’s first crypto bank.
The German parliament has authorized banks to vend and hold cryptocurrencies. Marco Bodewein of Bitcoin Group SE aims to educate institutional investors about the safety and returns of crypto. He sees the current climate as an opportunity. He plans to introduce these features to financial institutions. Subsequently believes that additional institutions will adopt this new technology in a similar fashion.