Let’s pick up where MicroStrategy[1] left off – their additional purchase of bitcoin[2], which leaves them with a total of 40,824 BTC. While this may be bullish for bitcoin and everyone in the ecosystem, we don’t realize what this implies, so, let’s take a look at what this means.
Grayscale
Grayscale Investments[3] has been at the forefront of bringing bitcoin to institutions and retail alike. However, what goes unnoticed by most is the rate at which they are buying BTC.
Jan 2017 – Jan 2018, their BTC holdings increased by 9.87%. The same trend was observed from Jan 2018 to Jan 2019 with a 15.73% growth in holdings. From Jan 2020 to June 2020, the holdings increased by a whopping 89.39% to 536.86K BTC that they hold [not accounting for the first week of December].
Grayscale is gobbling up bitcoin at an unprecedented rate as more institutions realize what the future for the dollar holds.
MicroStrategy
In an interview with CNBC Michael Saylor casually mentioned[4] that it would produce profits in excess of $500 million[5] next year and it would debase by 15-20% if held as cash, which is why he invests it in bitcoin, which provides 100% yearly return. Just from August 2020 to December 2020, Michale Saylor has scooped up a whopping 40,824 BTC[6], which is approximately 7% of what Grayscale holds.
These two companies are just the ones that are in the news or being talked about widely in the crypto space.
Let’s take a look at the ones that aren’t.
Source: BitcoinTreasuries[7]
As one can see, these companies together hold about 0.888 million BTC or 888K BTC. This number is only going to go up.
The question
