In recent weeks, there has been a significant interest in the acquisition of Bitcoin by financial institutions. Many of them have done so out of a genuine belief that this asset will potentially increase its price. Today we present the most outstanding that have invested in Bitcoin, in 2020.
To this, a recent research by Trustnodes, revealed that large companies have invested in Bitcoin, about 10 billion dollars.
Also, a new paper by the Blockchain Summit Latam, Commented on institutional investment in Bitcoin. Specifically, in the fourth day, which took place on November 5, Joaquín Moreno, founder of BTCenEspañol, Presented a paper entitled: Why are public companies buying Bitcoin as an investment?
Particularly, from this year it could be seen how two financial institutions, went into investing in Bitcoin. They are MicroStrategy and Square. In total he detailed that there are 23 public business organizations that own 770,000 Bitcoin.
Financial institutions that have invested in Bitcoin
It is one of the financial institutions that have taken refuge in Bitcoin. The company currently has approximately $ 500 million in BTC.
In this regard, Michael J. Saylor, CEO of MicroStrategy, announced that his company had purchased a substantial amount of BTC ($ 250 million at the moment). This investment was made as a protection against inflation.
«This investment reflects our belief that Bitcoin, is a reliable value deposit and an attractive investment asset with more potential for long-term appreciation of having cash».
Indeed, the company currently has approximately 70% of its shares in BTC.
Galaxy Digital chief Mike Novogratz announced that he had increased his BTC position. This decision was made by projecting the recent Bitcoin rally.
On October 8, Jack Dorsey expressed that they had bought approximately 4709 BTC for a price of $ 50 million. Which accounted for 1% of the total assets that Square reported for the second quarter of 2020.
Precisely, Square believes that Bitcoin is an instrument of economic empowerment and provides a way for the world to participate in a digital monetary system. That aligns with the purpose of the company.
Similarly, Square’s CFO Amrita Ahuja said:
“We believe that Bitcoin has the potential to be a more ubiquitous currency in the future.”
Beyond the $ 50 million Square has put into BTC, the company has made significant contributions to BTC’s development.
Certainly, in March the company had announced a grant program to fund the development of Bitcoin. While in January the company had also notified that they were working to support the development of the Lightning Network.
Mode Global Holdings
True, on October 21, a UK fintech company announced a purchase of Bitcoin (BTC). Becoming the first listed company in the UK.
By the way, Mode CEO Jonathan Rowland commented:
«Our decision to allocate 10% of our cash reserves to buy Bitcoin was motivated by the need to protect investors ’assets and gain value.».
In addition, he added: «The funds had previously been kept in pounds sterling at the UK interest rate, at an all-time low of 0.1% we made the decision to mitigate the devaluation of the currency».
In conclusion, the economic crisis caused by Coronavirus has pushed financial institutions to take refuge in valuable assets that offer more security. Therefore, Bitcoin has shown its potential in this regard.
I say goodbye to this quote from Charlie Munger: «People do a lot of calculations, but they think little».