A couple of years ago, companies did not think about buying cryptocurrencies — especially large investors and corporations. Someone was afraid to invest because of an unstable exchange rate. Others were simply not sure that investing in a crypto market was a good idea.
But recently, some important changes have taken place. Bitcoin has increased its market cap and gained full acceptance by many states and businesses. Now it is called digital gold.
Who is buying bitcoin now? In addition to private investors, large firms joined the sector — some trade on a stock exchange or run hedge funds. Today we will consider interesting stories about how bitcoin helped these companies increase their income and beat the competition.
MicroStrategy became the first public company to take the risk of investing in bitcoin. They converted more than $5.8 billion of their capital into digital gold. The company owns a total of 124,391 BTC, which is approximately 0.7% of the world’s total bitcoin reserves.
MicroStrategy has made huge returns on its investment simply because it was the first to enter the market.
Interestingly, Michael Saylor, the company’s CEO, was once a big opponent of digital currencies. But currently, he jokingly admits buying BTC for $1,000 every second:
Sailor believes that cryptocurrencies are important for diversifying capital of any large company. He is now a member of the Bitcoin Mining Council, a group dedicated to improving sustainability of mining the first cryptocurrency.
Against the background of the rate correction, MicroStrategy continues to actively buy bitcoins. Sailor explains that his company’s strategy is a long-term investment, so they don’t care about temporary fluctuations.
Tesla’s decision to buy bitcoin came as a shock and brought a lot of attention to the cryptocurrency. In addition, such ideas were accompanied by contradictory tweets from Elon Musk.
Tesla used to have 42,902 BTC in the company’s accounts, which is equal to $2.04 billion in total. This was the second most profitable investment in bitcoin from a public company.
Tesla sold 10% of its crypto assets last year. According to Musk, the reason is pretty simple — he wanted to test bitcoin’s liquidity as an alternative to cash.
At one time, Tesla accepted payments in BTC. But later, they abandoned this idea, allegedly due to the impact of mining on the environment:
Thus, a couple of days ago, it became known that Tesla sold 75% of its Bitcoin cryptocurrency reserves for $936 million. At the end of 2021, these assets were valued at $2 billion.
Musk cited concern over ‘the company’s overall liquidity’ as the reason for the sale. According to Reuters, the billionaire is worried about the uncertainty regarding quarantine restrictions in China, which is negatively affecting Tesla’s production in that country.
#3 Galaxy Digital
Galaxy Digital Holdings is one of the largest players in the institutional investment market, led by charismatic CEO Michael Novogratz. He never ceases to defend digital assets — he promotes them in interviews and numerous Twitter battles. The businessman believes that bitcoin investments are universal and suitable for individuals and businesses.
By the way, recently, Novogratz offered a bet to the most ardent opponent of bitcoins, Peter Schiff. The businessman bets $1 million that BTC will cost more than $35,000 by the end of the year.
And now a little about Novogratz’s company itself. Galaxy Digital holds 16,400 BTC in their accounts. Their total value now stands at just over $779 million.
Since the first purchases, the price of BTC has grown significantly, thanks to which Galaxy Digital has become one of the growth leaders among public companies.
Now the brand offers its customers several crypto funds, and bitcoin is not the only digital investment of the company. They own an Ethereum fund and a DeFi index fund. In addition, they filed with the SEC last year to open the first Bitcoin spot ETF. But the regulator has not approved these documents yet.
#4 Voyager Digital
Voyager Digital is a brokerage firm that has been operating since 1993. It has a subsidiary, Voyager Digital Holdings, which cooperates with cryptocurrency brokers. The firm offers over 60 digital assets and has established branches around the world.
The company owns 12,260 BTC worth $585 million. Thanks to the crypto brokerage business, they increased their quarterly revenue by 16 times in May 2021 compared to the previous period.
True, recently, Voyager Digital has changed the tone. In their latest tax report, they expressed fear about BTC’s exchange rate instability. The company expects that ’a significant drop in the price of bitcoin will have a negative impact on the results of operations of Voyager Digital.’
Like Tesla, Block (formerly Square) has pioneered institutional investment. In October 2020, they invested $50 million in cryptocurrency. And a month later — another $170 million. Since then, it has become clear that CEO Jack Dorsey has become a devoted fan of BTC. By the way, he even has his own Bitcoin node:
Today, Block regularly buys BTC and makes it part of its business model. They have 8,207 coins worth $381 million in their holdings. At the same time, they spent $220 million on investments.
Jack Dorsey stepped down as CEO of Twitter last year to devote his time to his payments company full-time. Block has a lot of plans for the future. They are preparing to release a hardware wallet, their own DeFi platform, and even mining rigs.
That’s it. As you can see, each company has its own path that led them to the crypto industry. And if you’re also about to buy some crypto, you should definitely think about doing it at Switchere. On our platform, you have an opportunity to buy all leading cryptocurrencies in the fastest and most convenient ways using any available payment method. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.