Crypto-Mastermind summary:

  • The company Stone Ridge Asset Management (SRAM) recently announced that it has acquired approximately $115 million of Bitcoin.

  • More and more companies have little confidence in the traditional financial system. The FED recently announced another $5 trillion increase.

  • 15 listed companies now hold over 600,000 BTC. That is the equivalent of almost $7 billion.

In recent weeks and months a growing number of companies and institutions have turned to Bitcoin or expanded their holdings. Outstanding examples were Grayscale, Square and MicroStrategy. But the trend seems to continue, as the number of companies investing in Bitcoin grows further. In total, companies currently hold over 600,000 BTC. This is over 3.2% of the total available quantity.

Another company announces Bitcoin-Invest over $100 million

The latest announcement of a Bitcoin investment comes from Stone Ridge Asset Management (SRAM). Through an internal spin-off company called New York Digital Investment Group (NYDIG), Stone Ridge has acquired Bitcoin for approximately $115 million.

SRAM’s Managing Director, Robert Gutmann, believes in the positive development of open source money systems such as Bitcoin. The current financial system is being put to the test by the Corona-crisis and the monetary policy of the banks in particular. More and more people seem to lose faith in traditional fiat money:

„We’ve seen a pretty dramatic acceleration in the count of institutional investors who want to participate in the market since March of this year … The macro backdrop against the public health backdrop has caused a lot of people to rethink their portfolio composition.“

On 12 October, the Federal Reserve Bank announced another increase in the money supply. According to the announcement, another $5 trillion would be needed next year. The rapid increase in the money supply may give a boost to limited assets such as Bitcoin.


Companies currently hold over 600,000 BTC

Stone Ridge is not the only company that thinks so. In total, companies listed on the Nasdaq, London and Toronto Stock Exchanges and other exchanges currently hold over 600,000 BTC. This is equivalent to a value of almost $7 billion.

Grayscale’s Bitcoin Trust has the largest share with Bitcoin worth over $5 billion. In second place is CoinShares with almost $800 million in Bitcoin. MicroStrategy now ranks third with an investment of approximately $435 million.

The company’s CEO Michael Saylor also sees the increase in money supply as an advantage for Bitcoin. He is pleased that more and more companies are investing in the cryptocurrency:

„As the trillions of dollars on the balance sheets of banks, asset managers, insurance firms, endowments, & family offices begin their migration to the #Bitcoin universe, they will need firms like NYDIG to guide them.“


Bitcoin as long-term asset

Saylor sees Bitcoin as a long-term investment. The company considers Bitcoin as the most important investment in its „treasury reserve strategy“. In total, the Company’s investment currently adds approximately $15 million to its total assets. Saylor says:

„I considered investing our treasury in fiat, bonds, stocks, swaps, index funds, options, real estate, commodities, precious metals, art, & intangibles before settling on #Bitcoin. It seems like the ideal long duration asset – I don’t understand why anyone would want to trade it.“

Other large companies holding Bitcoin include Galaxy Digital, Square, 21Shares and Riot Blockchain. The 15 publicly traded companies with Bitcoin in their portfolio have collectively earned approximately $500 million since their respective investment dates.

We see that more and more companies no longer trust the traditional monetary system and are looking for alternatives. While the Bitcoin bullrun in 2017 was driven primarily by individual private investors, there is increasing speculation that a next bull-market will be created this time primarily by institutions and companies.

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