Many public companies have increased their holdings with Bitcoin. It is estimated that over $6.5 billion (around 1%) of Bitcoin is in the custody of 19 public companies. In addition, 5.75% market capitalization are available as exchange-traded products and closed-ended trusts.
According to a recent survey by Nickel Digital Asset Management, the 19 public companies have a total market capitalization value of over $1 trillion. Thirteen of the companies are located in North America, three in Europe and the remaining three scattered around other regions.. There are additional seventeen public companies that have bought Bitcoin but full information as regards the monetary value of the BTC bought is unavailable.
The survey reveals that crypto acceptance by organizations is on the increase, a fact buttressed by the buying of Bitcoin during the beginning of the year by eight companies in contrast to last year. Only seven firms purchased Bitcoin throughout 2020.
The CEO and cocreator of Nickel said that the COVID-19 coupled with economic stimulation by the reserve banks have contributed to currency devaluation. The reduction in the purchasing power of money and the U.S $18 trillion bond negative yield are all contributory factors that have led firms into seeking other holdings option.
Feedback from the analysis Nickel undertook at the year’s beginning revealed that organizations will continue to purchase crypto. 81% of fund managers in Europe stated that they anticipate more companies to acquire crypto asset. The analysis was however carried out before the market decline of crypto this year.The Nickel CEO believes that organizations’ acquisition of crypto will reduce crypto mutability in the long run.
JPMorgan’s man however doesn’t agree to the presumption that firms are crypto lovers.He stated that data from the spot market reveals that interest in crypto is on the decline.
Bitcoin Treasuries stated that $13.5 billion (1.8%) of Bitcoin is in the custody of four private firms. It also declared that Bulgaria and Ukraine have about $8.5 billion and $1.8 billion Bitcoin respectively.
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