Bitcoin Reserves in Corporate Treasuries Tops $10 Billion
Bitcoin reserves in corporate treasuries has grown above $10 billion as large public and private firms look for a safe haven from the fiat fiasco.
According to data from bitcointreasuries.org, the total amount of bitcoins held as a reserve asset on the books of corporate treasuries is 785,999 bitcoins. With the price of Bitcoin to USD at $13,000 that works out at $10.22 billion.
Bitcoin web portal Bitcoin Treasuries tracks the amount of BTC held on the books of large firms. It shows 23 public and private large companies with significant amounts of Bitcoin reserves – a staggering increase from only two weeks ago, when there were only 13 companies listed.
2020 A Big Year For Corporates Turning To Bitcoin as a Reserve Asset
2020 has been a big year for corporate treasuries turning to Bitcoin as a reserve asset.
Grayscale leads the way. On this day last year, the Grayscale Bitcoin Trust (GBTC) was worth $2.1 billion is up to $5.89 billion today, and the AUM in October 2018 was a measly $225 million.
However, the biggest news of the year has been Michael Saylor and MicroStrategy using most of its liquid cash to buy 38,250 bitcoins.
At the time, CEO Michael Saylor likened MicroStrategy’s large $500 million cash treasury to a melting ice cube. He made what appears to be one of the boldest moves in corporate history and put $425 million worth of BTC on its books.
Following Microstrategy, payments firm Square Inc. revealed it bought 4,709 BTC as part of its strategy going forward.
Since the MicroStrategy news broke, it seems like CEOs across the world are clambering to get buy Bitcoin.
The Bitcoin Treasuries List
The Bitcoin Treasuries list is broken up into three categories: publicly listed businesses, private firms, and ETF-like organizations.
Of the publicly listed companies MicroStrategy holds the most with 38,250 bitcoins. At today’s price that’s $493,268,175, up almost $70 million since buying the bitcoins in Q3.
There are 14 other publicly listed firms including Square Inc., Galaxy Digital Holdings, Hut 8 Mining Corp, and Argo Blockchain. Together they hodl 67,536 bitcoins in reserve. At today’s Bitcoin to USD price it’s worth a total $863 million.
The biggest holder of BTC, however, is Grayscale. The Grayscale Bitcoin Trust (GBTC) is in the ETF-like category, and it hodls 456,537 bitcoins on its books.
GBTC has grown at an unbelievable rate this last year, and at today’s Bitcoin to USD price its Bitcoin reserves are worth almost $5.89 billion.
Others hodling Bitcoin reserves in the ETF-like category include Coinshares XBT, 3iQ The Bitcoin Fund, ETC Group Bitcoin ETP, and 21Shares AG. These four combined hodl 86,229 bitcoins in reserve, which is worth $1.12 billion at today’s price of $13,000.
All five ETF-like organizations have an aggregate total of 542,766 BTC worth $6.9 billion at today’s Bitcoin to USD rate.
The Bitcoin Treasuries list also includes major private firm hodlings, which makes for some interest observations.
The biggest hodler of Bitcoin for private treasuries is altcoin creator Block.One. The EOS creator hodls 140,000 bitcoins in reserve worth over $1.8 billion. This is just under 50% of the $4 billion USD raised in its year-long ICO back in 2017-18.
The other private organizations are crypto firm the Tezos Foundation with 24,808 bitcoins , and asset management firm Stone Ridge Holdings Group has 10,889 bitcoins as part of its reserves.
The three private firms have a total of 175,697 bitcoins on their books, worth $2.2 billion at today’s Bitcoin to USD price.
The total of all 23 companies on Bitcoin Treasuries list hodl 785,999 bitcoins, which is worth over $10 billion at the current Bitcoin price.
The list doesn’t include companies such as Canadian restaurant franchise Tahinis, or UK fintech firm Mode which announced this week that it had put 10% of its liquid treasury into Bitcoin reserves.
Bitcoin Reserves in Corporate Treasuries Will Become the Norm
2020 has been the turning point for large corporates hodling Bitcoin reserves. And with the state of the global economy and governments racing to inflate their fiat value, this trend will only continue.
Grayscale is the flagbearer with Bitcoin reserves worth $5.89 billion. However, the biggest news of the year has been MicroStrategy using most of its cash reserves to buy Bitcoin.
There’s been a string of CEOs following suit including Jack Dorsey at Square Inc. The most exciting thing about this, however, is Dorsey is also sitting on tens of billions of dollars at Twitter.
Why would Dorsey not think it a good idea to hold some Bitcoin reserves for Twitter? It isn’t beyond the realms of possibility to believe Dorsey and every other CEO is having this discussion today.
It’s new and exciting, and this year has been a turning point for corporate treasuries turning to Bitcoin as a reserve asset. However, it’s only a matter of time before every treasury holds some Bitcoin reserves.
And then its governments and central banks.
