- BTC continues to be accumulated by Grayscale, a leading digital asset fund manager.
- It was noted that the firm’s leading Bitcoin Trust added 12,319 BTC to its coffers in a single day.
BITCOIN CONTINUES TO BE ACCUMULATED BY GRAYSCALE
Bitcoin continues to be accumulated by Grayscale, a leading digital asset fund manager.
This shows clear institutional demand for Bitcoin despite the recent consolidation.
Bad news for Bitcoin bears.
Grayscale's Bitcoin Trust just added 12,319 BTC to $GBTC in a single day.
That's more than the 11,512 BTC they added during all of last week, when Bitcoin broke its ATH.
— Kevin Rooke (@kerooke) December 23, 2020
This is only temporary and is likely related to firstly, the holiday season, and secondly, a large unlock of private shares of the Trusts, which can now be sold on the secondary market.
Some think that this may mean there will be limited inflows into Bitcoin and Ethereum over the next few weeks, but this appears to only be a temporary setback for the market. Additionally, other institutional players are accumulating the leading cryptocurrencies via other vehicles.
— Edward Morra (@edwardmorra_btc) December 21, 2020
NOT THE ONLY ONE THAT THINKS SO
“TYSONS CORNER, Va.–(BUSINESS WIRE)–Dec. 21, 2020– MicroStrategy® Incorporated (Nasdaq: MSTR) (the “Company”), the largest independent publicly-traded business intelligence company, today announced that it had purchased an additional approximately 29,646 bitcoins for approximately $650.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $21,925 per bitcoin, inclusive of fees and expenses.”
MicroStrategy sees the leading cryptocurrency as a superior investment to cash. Commenting on the recent investment, Michael Saylor of Microstrategy said:
“The acquisition of additional bitcoins announced today reaffirms our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value. We believe the proactive management of our balance sheet, combined with the improved revenue and profitability performance of the Company, have been significant factors in the recent appreciation in our stock price.”
These corporations and funds investing in Bitcoin for the long run will likely restrict the amount of BTC on the market, thus pushing up prices over time assuming demand for the cryptocurrency increases.