Crypto Investing
5 Feb 2021

Top 5 Leading Bitcoin Investors

Farheen Shaikh

The global market size of cryptocurrencies stood at USD 754M in 2019 and currently, the total market value stands at 940.32B.

This immense growth that we have seen in just one year is because of the growing individual and institutional adoption of cryptocurrencies.

You have seen us talk a lot about the increasing individual adoption rate of cryptocurrencies, a great testament of which is CoinSwitch Kuber itself. We have managed to onboard more than 2M users on our platform in less than 8 months. However, today we are taking a step back and discussing the institutional adoption of cryptocurrencies and how it has come along.

The growing institutional participation over the last year or so is one of the most influential drivers of the market’s bumper growth.

We have seen financial institutions like J.P Morgan, and Visa adopts cryptocurrency payments by embracing blockchain and creating their own cryptocurrency and issuing crypto-backed cards, respectively.

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Top 5 Leading World Companies & Their Crypto Investments

Let’s begin and see which companies have invested in cryptocurrencies and contributed to the overall market growth.

1.Grayscale

Grayscale Investments is a digital asset manager established in 2013 that helps individuals navigate their investments in cryptocurrencies.

They kick-started 2020 with $2B invested in cryptocurrencies. And with the ever-growing demand from institutional investors such as hedge funds, endowments and pension funds, they ended 2020 with $20.2B invested in digital assets.

They have seen a whopping 900% increase in demand from institutional investors.

Greyscale’s largest holdings remain in Bitcoin with the firm having $10.82 billion invested in its Bitcoin Trust. In November 2020, Guggenheim’s Macro Opportunities Fund also showed their interest in cryptocurrencies by requesting to invest 10% ($497M) of their funds into Greyscale’s Bitcoin Trust.

Though Grayscale’s majority of funds is allocated to Bitcoin, Michael Sonnenshein, M.D at Grayscale Investments, recently revealed 

 “Over the course of 2020 we are seeing a new group of investors who are Ethereum first and in some cases Ethereum only. There’s a growing conviction around Ethereum as an asset class.”

2.MicroStrategy

MicroStrategy offers business intelligence solutions to enterprises and empowers them with software and expert services.

As per Coinbase, MicroStrategy’s initial investment in Bitcoin occurred in August 2020 where it invested around $250M in Bitcoin and added more Bitcoins worth $175M in the following month.

But it doesn’t stop here; they disclosed to have invested an additional $50M in Bitcoins.

Wait, there is more……

They made the dauntless move of holding a convertible senior note of $650M to raise funds and buy more Bitcoins. All the funds raised have been put towards buying 29,646 more Bitcoin.

MicroStrategy now has around 70,470 BTC worth over $1.596 billion in their treasury reserve.

They are probably the first company to hold such an enormous amount of Bitcoin in their balance sheet. It looks like they are turning out to be one of the whales in the market.

3. Square 

Square is a financial services company marketing software and hardware payment products that allows its users to buy, sell and transfer bitcoins.

Around the recent halving of Bitcoin, Square bought nearly 40% of the newly mined Bitcoins and invested $50M in BTC.

In the last leg of 2020, even Paypal announced the adoption of cryptocurrencies on its platform, which was the highlight of the due period. Both of these companies together acquired around 70% of the newly mined Bitcoins.

While on the subject, I would also like to tell you that other financial services like Webull, Robinhood, Cashapp are also entering the league as they allow their users to trade in cryptocurrencies on their platforms.

4. Mass Mutual

Mass Mutual is a Massachusetts based life insurance company that recently dabbled into cryptocurrencies.

The 169 yr old company invested around $100M in Bitcoin, representing around 0.04% of their general investments. The cryptocurrency is bought from NYDIG; a financial services firm focused on providing cryptocurrency services to institutions. 

Around the same time, they also acquired a $5 million minority equity stake in NYDIG. NYDIG currently keeps $2.3 billion worth of crypto assets and is also now holding Mass Mutual’s Bitcoin.

MassMutual told the Wall Street Journal it was seeking “measured yet meaningful” exposure to an increasingly digital world.

Though their Bitcoin investments are comparatively low, considering Mass Mutual is a mainstream organization and has an overall investment portfolio valued at $235B. It still shows the interest that institutions hold in this new asset class.

5. Voyager Digital

Voyager Digital is a crypto-asset broker that provides commission-free trading of crypto assets.

The company recently announced that they have surpassed $200M AUM (Assets under management) which is a 40X growth over the past 12 months (in 2020).

Currently, their total AUM stands at $485 million.

Though market sentiments heavily influenced this growth, more than 65% of the growth is credited to its prevailing users. And the increasing AUM of the company will help you understand the increased investments in cryptocurrencies.

The Bottom Line

In crisp:

The cryptocurrency market is thriving because of institutions infused demand over the last year or so. Which has led to many individual investors also gain enough confidence in cryptocurrencies. It shows that we are very close to the mainstream adoption of cryptocurrencies and people not realising it will realise it when it is too late.

[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

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Farheen Shaikh

Content Writer

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